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


The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

During the seventh edition of the #PortadaMX summit, experts in Influencer Marketing took the stage to discuss best practices surrounding this elusive but undeniably effective tool to reach consumers. Vivian Baron, CEO and Creative Chairwoman at Band of Insiders, presented the panelists: Best Buy Mexico's E-commerce Subdirector José Camargo, Grupo Bimbo's Global Consumer Engagement Lead Giustina Trevisi, Band of Insiders' Influencer Marketing Manager Leonardo Vargas, and Pepsico/Drinkfinity's Director of Business Innovation & Marketing Yamile Elias.


Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts tell Portada the downfall of the storied retailer won’t affect the Sears franchise in Mexico where better merchandising and e-commerce under the management of Grupo Carso, owned by Mexican billionaire Carlos Slim, have built the franchise into a big hit with Mexican consumers. The implications for the U.S. Hispanic Market.