With Netflix planning to spend $8 billion on content this year, company plans to raise $1.5 billion in debt
A few years ago, Netflix came to the astute realization that it needed to amass a large library of original content. The brilliance of Netflix's decision here was two-fold. For starters, original content helps Netflix bring more subscribers into the fold. Second, a vast library of original content helps lessen the company's reliance upon third-parties who -- thanks to the growing influence Netflix wields -- are understandably wary of the threat Netflix poses.
Consequently, Netflix has been spending insane amounts of money on developing and acquiring original content, not to mention licensing content from third-parties. In 2017 alone, Netflix spent approximately $7 billion on content. And just a few months ago, Netflix signaled that it may spend as much as $8 billion on content by the time 2018 draws to a close.
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With Netflix planning to spend $8 billion on content this year, company plans to raise $1.5 billion in debt originally appeared on BGR.com on Mon, 23 Apr 2018 at 23:00:55 EDT. Please see our terms for use of feeds.