Netflix's ambitious plans to release more original movies and TV shows are well-known, but we now have a clearer picture of the price. Netflix announced that it would raise an additional €1 billion, or about $1.08 billion, from "non-US persons" to fund new original programming efforts.
While the company stated the money would be used for "general corporate purposes," Netflix has been open about the fact that most of its funding going forward would be used for content acquisitions and production.
At the end of last year, Netflix announced it would increase its amount of original programming to 1,000 hours in 2017, including 20 new original series and 30 movies. The first season of the competition show Ultimate Beastmaster already launched with its first 10-episode season, as has the sci-fi movie The Discovery, starring Rooney Mara and Robert Redford. The movie War Machine, starring Brad Pitt, is due out next month.
Overall, the company's debt hasn't affected earnings much. Netflix reported $2.67 billion in revenue for Q1 of 2017, which was in-line with expectations even though it added fewer subscribers than anticipated. The company may be burning through cash, but Netflix hopes that acquiring and producing more original content will help it make more money from paying subscribers over time.
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