Video streaming giants Netflix has plans to borrow an additional $2 billion in order to help fund their exclusive movies and shows they claim have been instrumental in helping their service bring in new subscribers.
That is according to Deseret News, who reports that the company is in need of more capital as they have been spending more money than the service has been generating. Spending has risen at Netflix since they moved into original programming with the House of Cards debut in 2013.
They also expect to spend $3 billion this year and the $2 billion they are seeking to loan will be in addition to their existing $11.8 billion owed, a sum that includes another $1.9 billion debt offering that the company completed this year.
Despite the company's constant borrowing, they have reaped major success. Since September 2013, the service has seen over 100 million new subscribers join up. They reeled in 7 million in the last quarter alone and project that they will add a further 9.4 million new users by the end of 2018.
Per the report, Netflix believes that their spending on award-winning programming will help them in the long run and keep them in the lead where video streaming services are concerned. There is competition in the form of services such as Hulu, Amazon Prime, HBO and Walt Disney Co. However, the company reckons they will remain ahead in the game with their expanding service and their constant work as it relates to releasing original content.
As a testament to their success, investors have been banking on Netflix. The company's stock has grown seven-fold in the last five years and their market value is now around $146 billion.
As of Monday company shares were at $329.54.
Given their influence on the streaming market, it is unlikely that Netflix runs into major problems. The service is still the most popular in the video streaming subscription world and they will keep bringing in new customers despite the competition.