Netflix raises more money for content

23-OCT-18

While everyone is distracted by social media and accusing Netflix of targeting ads to users based on their race (I don't remember ticking a race box when I signed up for Netflix but whatever!). The company announced that it would be raising $2 billion in capital by issuing some high-yield bonds. The cash will fund more original blockbusters to stay ahead in the contents arms race.

The company is passionate about getting the best talent, to produce edgy and captivating content, that makes for heated water-cooler arguments. I will borrow an analogy from one of my role models, Netflix has gone underwater with the largest oxygen tank of free capital and has forced the likes of Amazon, Hulu, and Disney to follow them down and so far everybody else is drowning. They're all playing catch up!

This has been managements preferred content strategy since 2013. It is not only a gangster move to pull but has also worked out well for shareholders.

In case you were wondering, this is what I'm currently watching: