LOS GATOS - Netflix plans to raise up to US$1 billion in debt to fund original content as viewerships continue to rise during the coronavirus (COVID-19) pandemic.
As reported by Reuters, the streaming service provider will spend the money on content acquisition in response to major film studios halting productions and postponing releases due to the pandemic. The company, said Chief Content Officer Ted Sarandos, is currently working on over 200 post-production projects.
Although Netflix remains the most popular streaming service provider, it also faces serious competition from emerging platforms such as Walt Disney Co’s Disney+, HBO’s HBO Go, and Amazon.com Inc’s Amazon Prime. Currently, Netflix has around 183 million subscribers worldwide.
In the first quarter of 2020, Netflix released a number of popular original shows such as Spanish crime drama La casa de papel (also known as Money Heist internationally), reality show Love is Blind, and documentary miniseries Tiger King. According to BMO Capital Markets, the company will spend over US$17 billion on content this year, having budgeted US$15 billion in 2019. (MS)