Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
How Netflix Plans To Raise $400 Million In Debt To Invest In The Future Of TV
How Netflix Plans To Raise $400 Million In Debt To Invest In The Future Of TV
Kirsten AcunaJan 30, 2013, 00:53 IST
Getty Images Latam Netflix plans to spend $225 million on new programming, investments, and corporate spending.A week after surprising everyone— including itself — with a surge in quarter earnings, Netflix announces it's planning to raise $400 million in debt. According to the press release, Netflix will use about $225 million to refinance a percentage of its senior notes. The rest of the funds will go toward investments, future acquisitions, and corporate spending. It's no surprise that Netflix would want to continue to expand with content both original and syndicated.CEO Reed Hastings made it clear during its Q4 earnings call that Netflix would like to pursue acquiring more content. "We’d like to get more movies, we’d like to get more privacy’s in television. We’d like to have more originals," said Hastings. "And in general, as we grow, we’ll be able to deliver on that more and more for consumers."And, they already have. In the spring, Netflix will be adding content from the Cartoon Network and Adult Swim libraries after a deal with Warner Bros. This is in addition to its latest deals with Disney and producers to run current episodes of Fox's new show "The Following" and NBC's "Revolution."In the company's Q4 Investor's Letter, the importance of exclusive original content to the site's future is outlined in more detail: "Because original series can be completely exclusive to Netflix (no TVOD, no linear, no kiosks, no theaters) we believe they will be more effective in attracting and retaining members than equivalent content that is less exclusive to Netflix."Netflix sees exclusive deals with producers of popular dramas and original content vital as competitors including TV Everywhere and HBO Go continue to grow. SEE ALSO: Here's how the Rhino can factor into "The Amazing Spider-Man 2" >
