As the likes of Disney and Apple, among others, are gearing up to launch their respective streaming services, today Netflix announces plans to raise $2 billion to fund new content. The news follows Netflix’s previous $2 billion offer from October of last year, as the company’s content budget is expected to reach $15 billion in 2019.
According to Netflix, it will use the $2 billion for general corporate purposes, including content acquisitions, production and development, capital expenditures, investments, working capital, potential acquisitions, and strategic transactions. The debt funding will be raised through unsecured notes issued in two series in both US dollars and euros.
Variety reports that the $2 billion in funding brings Netflix’s long-term debt total to around $12.3 billion. And while interest continues to increase, the publication says that Netflix has yet to pay any significant amount of the debt.
Nonetheless, Netflix firmly believes that it can stay ahead of the competition by producing original content and securing the rights to additional programs. With other streaming services scheduled to launch in the near future, it will be interesting to see the dollar increase behind Netflix’s content push.