Netflix Will Spend Rs 7600 Crore To Make New Shows; Tiger King, Love Is Blind Generate 10 Crore Views, Users Double
Netflix has great news for all of us who are locked down at home, with nothing better to do than binge-watch. The leading OTT channel is planning to raise $1 billion in debt to fund new content to be streamed on the platform.
OTT channels are probably the only industry to prosper in the lockdown imposed due to the outbreak of the deadly Coronavirus.
To find out all the details about Netflix’s plans to raise money for more content, read on!
Netflix To Raise $1 Billion In Debt To Fund New Content
Reports suggest that Netflix is planning to raise around $ 1 billion in debt in order to fund new content. This money would be used to create more and newer original content that will be streamed on the platform. It might also be used to make acquisitions wherever necessary.
As of now, the company already owes around $ 15 billion. Netflix has seen a huge increase in its popularity in the recent few weeks when the lockdown was imposed. In fact, the popularity of the channel boosted by 68% to 80 minutes each day as of March 28 which was only a little under 50 minutes on February 5.
Also, the OTT channel’s quarterly earnings reported that they had about 15.77 million new paid subscribers had raised its viewing base to 182.8 million, thereby exceeding its previous projection of 7 million.
Netflix Generated More Revenue This Quarter Than The Previous One
As per reports, the earnings of Netflix have also been in line with the expectations. The revenue generated by Netflix in the first quarter of 2020 was $5.77 billion, which went up a bit from $5.47 billion in the previous quarter.
As of now, the production of movies has been halted across major studios, including that of Netflix. There are also movies that haven’t been released due to no availability of any cinemas to screen them.
However, there is also news that the shares of the company declined by 3% at $420 billion and it is also predicted to have a slower second half when shelter-in-place orders are lifted. Chief Content Officer Ted Sarandos said that most of the programming for 2020 and much more of 2021 has been filmed and is almost finished remotely in post-production.