In order to fuel its 2018 shows, global steaming service Netflix will be willing to delve into a deeper debt of 1.6 billion to cover the cost of production.
This news emerged from Variety, who reported that Netflix is hoping to present $1.6 billion in debt in order to further the progress of its original content budget for this upcoming year. The company has a target of spending between $7 billion and $8 billion on all expanded content for 2018. At the end of their third quarter of this year, Netflix reported that they were $4.89 billion in debt, which is much more than the $3.36 billion debt from last year.
They will focus their production on creating original movies, something they started this year, the first of which called Mudbound and will be released later this year. Movies will be as well as further investing in its current successful dramas including The Crown and, most notably Stranger Things.
Netflix is currently not working towards a profit, but more so looking to grow the company and if they have to go into a huge debt to produce the shows we love then, from their point of view, so be it. Saying that, Netflix won’t fail and within the next few years be looking at a large profit, a time-scale is largely dependent on how well its new shows perform.
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