Netflix Is Borrowing Way More Money To Make Original Content

the ranch

Netflix has rapidly been increasing its original programming over the last couple of years. At no point has that original programming growth slowed, and it looks as if the rapid creation of new TV shows will not be slowing down anytime soon. This morning, reports indicate that the subscription streaming service has borrowed an additional $800M in order to create new shows. That's in addition to the billion+ we already know the company borrowed for similar purposes.

In an announcement on Monday, Netflix stated the company would be borrowing an additional $800,000,000 for a slew of purposes, including general stuff like investments, working capital and even acquisitions. Regardless, Variety notes that a large portion of Netflix's spending is related to original dramas, comedies, comedy specials, movies and more. Eventually, the service even wants 50% of its content to be original stuff.

While it's common for growing companies to borrow money in order to grow, Netflix has borrowed quite a lot. Reports indicate that Netflix had already borrowed $2.37 billion. With the additional $800M, the company has a debt load of over more than $3 billion. Still, the news comes on the heels of Netflix's latest quarter earnings report, which indicated that the subscription streaming service made a boatload of money recently. The earnings report stated that Netflix made $2.15 billion in a three-month period. So presumably, the debt is good debt for the company. Still, $800M is quite a bit to borrow for originals.

In some ways, this increase in original content has been a boon to Netflix users worldwide. It has given us shows as varied as Luke Cage and The Ranch, and it has provided a platform to bring back originals like Arrested Development and Longmire. In other ways, however, it has contributed to a decline in popular content on the streaming service. In November, Netflix is losing Chuck and a slew of other popular TV programs and movies. At the same time, fewer big TV shows and films have been added to the streaming service.

Some big programs that have left Netflix have found homes elsewhere. Doctor Who hopped from Netflix to Amazon Prime last spring, so it wasn't a huge disaster when that series left Netflix. Still, for users who prefer Netflix to catch up on shows that originally aired elsewhere, the downward trend in non-original content has not been a boon for the service.

The good news is that if you do like a lot of Netflix's originals, the company does not look to be slowing down anytime soon. There are a slew of new programs headed to Netflix in the coming months, and the streaming service has even announced some 2017 programs already. You can take a look at those here.

Jessica Rawden
Managing Editor

Jessica Rawden is Managing Editor at CinemaBlend. She’s been kicking out news stories since 2007 and joined the full-time staff in 2014. She oversees news content, hiring and training for the site, and her areas of expertise include theme parks, rom-coms, Hallmark (particularly Christmas movie season), reality TV, celebrity interviews and primetime. She loves a good animated movie. Jessica has a Masters in Library Science degree from Indiana University, and used to be found behind a reference desk most definitely not shushing people. She now uses those skills in researching and tracking down information in very different ways.