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


Celeste Martorana @celesmartorana

Celeste joined Portada’s team in 2014. Since then, she has been working as an editor for Portada’s English-language website and compiling information for Portada’s Databases.

MORE FROM PORTADA

GroupM’s Susan Schiekofer and Undertone’s Michael Pallad Will Discuss Brand Safety at #PortadaNY

GroupM’s Susan Schiekofer and Undertone’s Michael Pallad Will Discuss Brand Safety at #PortadaNY

Do digital advertising standards and policies need to change in the light of fake news, transparency and ad fraud issues? Hear from the executive responsible for digital trading and implementation across all of GroupM’s agencies about what needs to be done so that brands demands are 100% met.



Women in Marketing and Media: If You Don’t See Her, You Can’t Be Her

Women in Marketing and Media: If You Don’t See Her, You Can’t Be Her

Although women are increasingly more visible in the industry, there’s still a long path to go towards women achieving their full potentials and pushing their untapped capabilities to the maximum, especially for Hispanic and African-American women, who feel their barriers are even higher.