Netflix has big plans in store for expanding its library of original content.
The company has announced it plans to raise $1.5 billion USD in debt in order to further invest in original productions.
This marks the second time in less than a year that the company is tapping the debt market. Netflix raised $1.6 billion in debt last October.
The company is looking to spend nearly $8 billion on content in 2018 in order to keep pushing up its subscriber additions — which beat Wall Street’s expectations in its most recent quarterly report.
According to its first quarter 2018 report, the company hit 125 million total streaming customers at the end of that reporting period.
Netflix also reported $2.6 billion in cash and equivalents as of March 31st, as well as $6.54 billion in long-term debt.
“Our debt levels are quite modest as a percentage of our enterprise value, and we believe the debt is lower cost of capital compared to equity,” Netflix said its in accompanying shareholder letter.
Netflix original titles include Stranger Things, Orange is the New Black and Jessica Jones.
The continued drive to invest makes sense considering the streaming platform is destined to face strong competition from Disney’s upcoming streaming service.
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