Netflix seeks $1bn cash injection to pay for more original content
Netflix is betting big on original content as the surest route to enticing new subscribers to the service by announcing it wishes to borrow a hefty $1bn to fund the production of a new wave of exclusive movies and TV shows.
The cash will be raised through a debt offering as the business is unable to fund such an aggressive push from its current 94 million strong subscriber base, gambling that the new content will be such a hit that it will be able to pay off these debts and more going forward.
Netflix is throwing every penny and cent it can get at new programming just now amid fierce competition from rival streaming services such as Amazon Prime Video pushing it into negative cash flow of $2bn this year.
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