FILE PHOTO: The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson
(Reuters) – Netflix Inc (NFLX.O) said on Wednesday it plans to raise about $1 billion in debt, a day after the streaming pioneer doubled its own projections for new customers as stuck-at-home users binged on original shows.
The company plans to use the proceeds to fund original shows, acquire content and for possible acquisitions, at a time when major U.S. studios are halting production and delaying film releases due to the coronavirus-led lockdowns.
Most programming for 2020, and much of 2021, has already been filmed and is being finished remotely in post-production, Chief Content Officer Ted Sarandos said on Tuesday, adding that the company was working on over 200 such projects.
As streaming video has grown in the United States, the market has become more competitive with the debut of Walt Disney Co’s (DIS.N) Disney+ and upcoming rivals. That has pushed Netflix to aggressively expand its content and look overseas for growth.
The company, which has about $15 billion in debt, last raised money in October 2019 through a $2 billion offering of senior notes.
Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty