Post «Netflix to raise $2 billion in debt to fund more content spending» in blog Прогноз погоды

People

John Smith

John Smith, 48

Joined: 28 January 2014

Interests: No data

Jonnathan Coleman

Jonnathan Coleman, 32

Joined: 18 June 2014

About myself: You may say I'm a dreamer

Interests: Snowboarding, Cycling, Beer

Andrey II

Andrey II, 41

Joined: 08 January 2014

Interests: No data

David

David

Joined: 05 August 2014

Interests: No data

David Markham

David Markham, 65

Joined: 13 November 2014

Interests: No data

Michelle Li

Michelle Li, 41

Joined: 13 August 2014

Interests: No data

Max Almenas

Max Almenas, 53

Joined: 10 August 2014

Interests: No data

29Jan

29Jan, 31

Joined: 29 January 2014

Interests: No data

s82 s82

s82 s82, 26

Joined: 16 April 2014

Interests: No data

Wicca

Wicca, 36

Joined: 18 June 2014

Interests: No data

Phebe Paul

Phebe Paul, 26

Joined: 08 September 2014

Interests: No data

Артем Ступаков

Артем Ступаков, 98

Joined: 29 January 2014

About myself: Радуюсь жизни!

Interests: No data

sergei jkovlev

sergei jkovlev, 59

Joined: 03 November 2019

Interests: музыка, кино, автомобили

Алексей Гено

Алексей Гено, 8

Joined: 25 June 2015

About myself: Хай

Interests: Интерес1daasdfasf, http://apple.com

ivanov5056 Ivanov

ivanov5056 Ivanov, 69

Joined: 20 July 2019

Interests: No data



Netflix to raise $2 billion in debt to fund more content spending

17:34 | 21 October expand

Netflix to raise $2 billion in debt to fund more content spending

For the second time this year, Netflix is offering $2 billion in debt to fund its investment in content, including original programming, content acquisitions, investments, and more.

The news was announced on Monday morning, and was followed by a slight dip in Netflix’s stock price.

The decision to increase its investment in content production follows Netflix’s well-received earnings beat last week, when it reported revenues of $5.24 billion versus the $5.25 billion expected, and EPS of $1.47 versus the $1.07 expected. Despite missing on subscriber numbers in Q3, Netflix’s stock quickly surged on the news.

However, the streaming service is not out of the woods just yet. It will soon face significant competition — especially among families with children — when Disney+ launches next month. Apple is also poised to launch Apple TV+, NBCU is bringing us Peacock, AT&T’s TimeWarner is debuting HBO Max, and Jeffrey Katzenberg is launching a mobile-only service called Quibi with big-name talent attached.

On their own, each of the new services wouldn’t be likely to unseat Netflix as a top streamer. But combined, they can chip away at Netflix’s user base if consumers decide to ditch and switch, instead of adding on yet another subscription.

On Netflix’s Q3 earnings call, Netflix CEO Reed Hastings even admitted that Disney is going to be “a great competitor.” However, he pointed out that all of the services — including Hulu, YouTube and Amazon Prime –have been competing more with linear TV than with each other.

That said, Netflix still needs to up its content game to keep customers subscribed. And that can be expensive.

“We don’t shy away from taking bold swings if we think the business impact will also be amazing. We don’t close every deal we chase and we don’t chase every deal on the table,” said Hastings, in Netflix’s Q3 letter to shareholders. He added that while not all Netflix’s projects work out, the large and growing subscriber base lets its experiment. And the size of its content budget — $10 billion on P&L spend and $15 billion in cash content spend — helps Netflix from getting too dependent on any single hit show.

The company also said its growing revenue base and expanding margins would allow it to fund more content spending internally, with cash flow freeing up further in 2020 and beyond.

In the meantime, however, Netflix is taking on debt.

In today’s announcement, Netflix says it intends to use the net proceeds from this offering “for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

Netflix to raise $2 billion in debt to fund more content spending Netflix to raise $2 billion in debt to fund more content spending Netflix to raise $2 billion in debt to fund more content spending Netflix to raise $2 billion in debt to fund more content spending Netflix to raise $2 billion in debt to fund more content spending Netflix to raise $2 billion in debt to fund more content spending
Netflix to raise $2 billion in debt to fund more content spending

 


Read more→

Posted on 21.10.2019 17:34

Comments

To show the previous comments (%s from %s)
Show new comments

Last comments

Walmart retreats from its UK Asda business to hone its focus on competing with Amazon
Peter Short
Good luck
Peter Short

Evolve Foundation launches a $100 million fund to find startups working to relieve human suffering
Peter Short
Money will give hope
Peter Short

Boeing will build DARPA’s XS-1 experimental spaceplane
Peter Short
Great
Peter Short

Is a “robot tax” really an “innovation penalty”?
Peter Short
It need to be taxed also any organic substance ie food than is used as a calorie transfer needs tax…
Peter Short

Twitter Is Testing A Dedicated GIF Button On Mobile
Peter Short
Sounds great Facebook got a button a few years ago
Then it disappeared Twitter needs a bottom maybe…
Peter Short

Apple’s Next iPhone Rumored To Debut On September 9th
Peter Short
Looks like a nice cycle of a round year;)
Peter Short

AncestryDNA And Google’s Calico Team Up To Study Genetic Longevity
Peter Short
I'm still fascinated by DNA though I favour pure chemistry what could be
Offered is for future gen…
Peter Short

U.K. Push For Better Broadband For Startups
Verg Matthews
There has to an email option icon to send to the clowns in MTNL ... the govt of India's service pro…
Verg Matthews

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short


Site search