More money, more content: Netflix announces plans to raise millions
LOS ANGELES -- Netflix is about to pour even more money into its original content.
The streaming giant on Monday said it has plans to take out $800 million in debt to finance originals. The overall goal for the platform is to have 50% original content, or a total of 1,000 hours of new programming, in 2017.
With the added debt offering, Netflix's long-term debt is over $3 billion.
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Netflix said in a statement the funds will go toward "general corporate purposes" including content acquisitions.
The news comes just a week after Netflix reported its third quarter earnings.
The platform added a total of 3.57 million subscribers in its third quarter, with about 3.2 million of those members coming from outside the U.S. Netflix also said it has axed its plans to launch its service in China.
The need for more cash comes as the company is making bigger bets on its own shows. This year, the platform released Baz Luhrmann's The Get Down, which reportedly cost $10 million per episode making it Netflix's most expensive show to date. Another one of Netflix's more costly shows -- The Crown -- launches on Nov. 4.
Also on deck: The highly anticipated Gilmore Girls revival.
In 2017, the platform will bring season two of its buzzy show Stranger Things, Marvel's Iron Fist, Bloodline (third and last season), A Series of Unfortunate Events, and a Bill Nye the Science Guy talk show.
Recently, news broke that Chris Rock is reportedly scoring a $40 million paycheck for two new Netflix specials also coming next year.
Overall, Netflix said it plans to spend $6 billion on content in 2017.
Topics Netflix
Saba was a Los Angeles-based reporter who covers all things digital entertainment, including YouTube, streaming services and digital influencers. Prior to that, she spent two years at the Los Angeles Times covering entertainment for the Calendar and Company Town sections. Saba grew up in Santa Monica and graduated from Boston University with a B.S. in journalism and B.A. in political science. When not reporting, she is usually binge watching shows online or looking for new coffee shops to frequent.
