The financing will also help fund content licensing, acquisitions and other “general corporate purposes.” (The Logic)
Talking point: The company will have about US$12.4 billion in long-term debt after this next round of financing as it continues to burn cash. It reported US$380 million in losses in its last quarterly report—up almost US$100 million from the same quarter a year earlier—and anticipates its burn rate to peak in 2019. The company noted in a recent letter to shareholders that investing in content production now will help temper losses starting next year. Netflix is doubling down on original content as it braces for competitors Apple and Disney to launch their own streaming services. Apple TV Plus, which launches next month, is almost half the price of Netflix’s cheapest subscription option and will stream original content exclusively. In its earnings call last week, Netflix product chief Greg Peters said the company also plans to crack down harder on password-sharing in a bid to glean revenue from users who are skirting its policies.