Netflix has announced plans to raise another $1.9 billion* in debt for “general corporate purposes” such as content, acquisitions, and capital expenditure, among other “strategic transactions,” according to a statement issued by the company.
The news comes just a week after Netflix reported strong Q1 2018 earnings, beating both revenue and new subscriber estimates. Indeed, the company added 7.4 million new subscribers in the first quarter, up 50 percent on last year, while revenue crept past $3.7 billion, a 40 percent increase on the same period last year.
The Los Gatos-based video streaming giant revealed that it plans to spend $8 billion on programming in 2018 alone as it looks to edge its library toward 50 percent original content. So if it’s to double down on its growth efforts and minimize its reliance on licensing third-party content, it will need all the capital at its disposal to make a Netflix subscription a no-brainer for viewers.
Netflix has made something of a habit of raising fresh funds by issuing senior notes to institutional buyers outside the U.S. In October of last year the company announced it would use this strategy to raise $1.6 billion, which followed two separate $1 billion debt offerings in October 2016 and April 2017.
*Netflix amended the figure from $1.5 billion which it had announced earlier on April 23. This article has been updated to reflect that.