Netflix, which announced a content budget of between $7 billion and $8 billion for 2018, is planning to raise another $1.6 billion in debt to fund new content and other strategic transactions.
The Los Gatos-based video streaming giant 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.
Last year, the company announced a $1 billion debt offering, followed by another $1 billion six months ago. As with previous offerings, the notes will only be offered to “qualified institutional buyers” outside the U.S.
One major growth area for Reed Hastings-led Netflix is feature films, where it anticipates releasing 80 films next year.
Earlier in August, Disney had announced to take out its content from Netflix and start its own live streaming from 2019. According to reports, the service will serve as the exclusive U.S. SVOD home for live-action and animated movies. The announcement to withdraw its Disney, Pixar, Marvel and Star Wars films from Netflix’s library, had hit Netflix’s stock.
Meanwhile, Netflix added 4.45 million international subscribers and raised its international subscriber total to 56.48 million, said its recent quarter result. Netflix has added more than 17 million international subscribers in the past year.
By offering original content in a country’s native language, Netflix has been able to penetrate even emerging markets like Brazil. On the company’s earnings call, company executives said that native language programming has the power to cross borders and become popular internationally as well, reported BUSINESS INSIDER.
For the Indian market, Netflix had announced new original series – ‘Selection Day’ and ‘Again’ from India. While Selection Day will be based on Aravind Adiga’s novel, ‘Again’ will be a supernatural series written by Quantico famed scriptwriter – Marisha Mukerjee.
Netflix’s arch-rival Amazon Prime had announced the launch of its first India-focused original series Inside Edge last month. The 10-episode series will be available on its video platform starting from this month.
Besides Netflix, Amazon, Hotstar and ALT Balaji, Viacom 18 and Zee TV have also entered digital streaming space with Voot and OZee respectively.