According to the announcement, the funds will be used for “content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
This investment comes just after Netflix released details about their revenue and future financial plans during their quarter 3 earnings call last week. In that report, we learned that Netflix saw a revenue increase of 31% from last year, reaching $5.2 billion. Also in the report, Netflix shared that they plan to continue investing in original content as the streaming competition heats up in the coming months.
“Amazing content can be expensive. We don’t shy away from taking bold swings if we think the business impact will also be amazing,” Netflix said in the statement last week.
The company went on to share that they will be working to increase revenue to fund new content. For now, they will be taking on a debt to cover the costs.
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