Netflix To Raise $2 Billion To Pay For More Original Content - Insight Trending

Netflix To Raise $2 Billion To Pay For More Original Content

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Netflix To Raise $2 Billion To Pay For More Original Content

Netflix today announced that it intends to raise $2 billion by offering senior unsecured notes to help fund new original content, According a release on its investors site, "Netflix 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.

Netflix as of late clarified amid its Q3 2018 earnings that it needs to keep on putting resources into original content with the end goal to stay competitive.

"We compete for entertainment time with linear TV, YouTube, video gaming, web browsing, social media, DVD and PPV, and more. In that competition for screen hours, we lose most of the time, but we win enough to keep growing.

As internet entertainment grows, more companies see the large opportunity. Content companies such as WarnerMedia and Disney/Fox are moving to self-distribute their own content; tech firms like Apple, Amazon and others are investing in premium content to enhance their distribution platforms. Amid these massive competitors on both sides, plus traditional media firms, our job is to make Netflix stand out so that when consumers have free time, they choose to spend it with our service.

Within linear TV, New Fox appears to have a great strategy, which is to focus on large simultaneous-viewing sports and news. These content areas are not transformed by on-demand viewing and personalization in the way that TV series and movies are, so they are more resistant to the rise of the internet. Other linear networks are likely to follow this model over time."

So it's very reasonable why the company wants to raise $2 billion to ensure it has enough money to continue growth.

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