Netflix Is Over $20 Billion In Debt, And Twitter Is Astounded
Netflix Is Over $20 Billion In Debt, And Twitter Is Astounded

Netflix Is Over $20 Billion In Debt, And Twitter Is Astounded

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Netflix has 104 million subscribers worldwide. Its series and movies account for more than a third of all prime-time download Internet traffic in North America. It boasts more than 50 original shows which scored 91 total Emmy nominations this year alone.

Netflix has also accrued $20.54 billion in long-term debt and obligations "in its effort to produce more original content" according to a report in The Los Angeles Times.

The company is poised to spend at least $6 billion in content this year, and its net cash outflow this year, forecasts indicate, will grow to as much as $2.5 billion, up from $1.7 billion last year.

The company isn't expected to lower its costs, either, which has left some analysts feeling skeptical.

“Nobody is ever the dominant player forever,” says Mike Vorhaus, the president of Magid Advisors, a media and digital video consultancy. “I think they're going to need some luck in not drowning in debt in the ultimate slowdown of growth.”

The magnitude of Netflix's debt stunned social media users, too.









Netflix has responded to the Los Angeles Times report, and it disputes its claims.

"The LA Times story inaccurately calculates our debt, counting our streaming obligations (i.e. our content contracts with studios) of $15.7b as debt, which it isn't. The correct number: we have total gross debt of $4.8b vs. our equity market value of about $75b. They have since corrected the story," the company said in a statement.

H/T: Los Angeles Times, The FADER

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