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Netflix is borrowing $1.5 billion to pay for new content

$1.5 billion

Netflix said on Monday (Apr. 23) it is raising $1.5 billion in debt financing. Though it said the money is meant for “general corporate purposes,” it is likely going to spend it with its aggressive drive to produce new content.

Published   |  Photo by Netflix
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$1.5 billion

Last year, Netflix invested $6.3 billion in content, and it’s spending $8 billion this year, on some 700 series and movies. That’s roughly comparable to what major players like Fox, Disney, and Time Warner spent last year.

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$1.5 billion

That money has to come from somewhere. According to Variety, this is the fifth time in about three years that Netflix has raised over $1 billion by taking on new debt.

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$1.5 billion

Netflix has raised over $1 billion in debt five times since 2015

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$1.5 billion

Netflix ended the first quarter with $6.5 billion in long-term debt, but argued in its quarterly investor letter that its debt is “quite modest” compared to its value.

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$1.5 billion

The strategy seems to be working. Netflix added 7.4 million customers in the first quarter, up 50% on last year, and reported $3.7 billion in revenue, up 40% on last year. It has 125 million subscribers worldwide.

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$1.5 billion

Netflix’s streaming subscriber base

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