Netflix to raise US $400 million to fund European expansion and new content

What: Netflix has announced it is planning to raise US $400 million in debt to fund its European expansion and the creation of new shows.
Why it matters: Following this move, Netflix could match HBO's number of global subscribers and produce the same volume of original content.

NetflixNetflix has announced it is planning to raise US $400 million in debt to fund European expansion and the creation of new shows. The battle between Netflix and HBO is not over. In the last quarter, Netflix outdistanced HBO in terms of its number of US subscribers. However, Netflix show House of Cards has won the kind of awards HBO is used to winning. Netflix is still far behind from HBO's more than 100 million global subscribers and doesn't produce nearly the volume of original content.

According to a study by TV agent Peter Micelli, the average episode of original content costs Netflix around US $4 million."At US $900 million of total long-term debt, we will have an extremely modest debt-to-equity ratio," CEO Reed Hastings said in the company's fourth-quarter letter to shareholders.

Source: Theverge.com


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

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