"Altered Carbon." "Stranger Things." "Bright." Those are all titles that are exclusive to Netflix, and they cost a lot of money to produce.
So, instead of tacking on another monthly subscription rate hike, Netflix is taking on more debt to keep those productions rolling.
Netflix said Monday it would go to the public markets and raise another $1.5 billion in debt as it works to fund its ongoing expansion into original and exclusive TV content.
Many Wall Street analysts had been anticipating Netflix would take such a step, and the company itself said it would raise debt "as needed to fund our increase in original content," when it reported its first-quarter results on April 16.
Netflix said Monday it would use the $1.5 billion it intends to raise for general corporate purposes, which could include content acquisitions, production and development, and potential acquisitions and strategic transactions.
The company has said it plans to spend $8 billion this year to fund content acquisitions and produce original films and TV shows.
Netflix's latest raising of debt comes about six months after the company tapped the public markets for $1.6 billion in debt financing. The company said it ended its first quarter with $6.5 billion in long-term debt on its books.
