Indo-Asian News ServiceOct 23, 2018 09:32:16 IST
US leading media streaming service Netflix Inc has announced it will borrow another $2 billion in new debt to fund original shows and content.
Netflix said it intends to use the net proceeds from the offering for "general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital, and potential acquisitions and strategic transactions".
This is the second time that the California-based streaming firm to tap the debt market this year, which adds its long-term liabilities to more than $30 billion.
Netflix is investing heavily in content to ramp up its battles for subscribers against its rivals such as Apple and Amazon.
The company has burned about $1.7 billion in cash in the most recent quarter, and it expects to burn through $3 billion this year.
Netflix reported $8.34 billion in long-term debt by the end of September this year, increasing 71 percent from $4.89 billion in the previous year.
Netflix witnessed a rapid growth in the number of subscribers for the third quarter of 2018, with 7 million new streaming customers added for the period, including 1.09 million in the US.
With a total of 130 million users in 190 countries and regions across the world, Netflix is expected to net 9.4 million new subscribers by the end of 2018, with the US being its largest market.