In 2016 Netflix spent $6 billion on TV shows, and movies and the streaming company was reported to spend as much as $9.5 billion this year. So how can a streaming service afford to spend that much money on productions? According to reports, our seven dollars a month, add fruit, endless hours of subscription service is not enough, even with 100 million users, so Netflix is hoping to raise another $1.09 billion through a bond offering outside of the United States.
“Netflix intends to use the net proceeds from this offering for general corporate purposes,” the company said in a statement, “which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
As the streaming giant’s content spending has increased, so has the cost to promote its projects. For example, Netflix said… that it would spend more than $1 billion in 2017 to market its content. Analysts also said the latest management commentary that day meant Netflix would likely continue to report free cash flow losses in the coming years, requiring additional funding.
This news comes after Netflix announced their plan to move all of their productions to Los Angeles, California. The company CEO explained that they are done chasing after film tax credits and plan on shooting all of their shows and movies in a centralized location on the West Coast.
