Prep those couches because Netflix’s original content is about to go through the roof. They’ve recently announced their plans to incur a major about of long-term debt. (One Billion to be exact, a BILLION with a “B”) to go towards funding of original content for Netflix. This is big news for television enthusiasts, with expansion of programming, new territories and subscribers going up. The future is blindingly bright for the corporation, Netflix’s viewership data is shrouded in mystery. Similar to other streaming services Netflix doesn’t rely on advertisers for its revenue (i.e. HBO) nor do they reveal the viewing numbers for their shows (successful or not.)
As for the specifics of the debt plan, according to Variety, Netflix CEO Reed Hastings and CFO David Wells wrote in a letter that,
“Over the next few years we expect to continue financing our original content expansion with long-term debt. As long as the maturities are spread out, and the interest cost is built into our content budgets, we think long-term debt is the best way for Netflix to finance the production of content.”
Get ready to see a pushback from HBO, HULU, and other competition. It’s all forcing the stations, and networks to create better content for the consumers though, so get your popcorn, ready for the binge.