Netflix has announced today that it plans to raise $1.5bn in debt, according to Reuters.
This will be the second time in less than a year that the entertainment company will look to the debt market following a continued expansion in original content on the platform.
Previously in October of last year, Netflix raised $1.6bn in debt, and has continued to spend big on new content in order to outperform competitors and ensure subscriber growth across the world.
Earlier this month it was confirmed that Netflix had outperformed Wall Street estimates for subscriber growth. The company achieved an addition of 7.4m net streaming customers in the first quarter of 2018, with 1.96m from the US and the other 5.46m internationally, allowing Netflix to achieve a net profit of $290m in the quarter.
Addition content, including the new series ‘Altered Carbon’, has driven predictions that the company could spend around $8bn in new content over 2018.
It was also reported that the company holds $6.5bn in long-term debt as of the end of the first quarter, and so it expects a negative free cash flow in the second half of 2018. It is also estimated that Netflix has around $2.6bn in cash based on its latest quarterly report.
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