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While most people think of Netflix as a streaming service first, akin to a TV network or some other entertainment hub, it's always worth remembering that the company is also responsible for producing a huge chunk of its original programming. From the quirkiness of Unbreakable Kimmy Schmidt's New York City to the destruction of Sand Castle's war-torn Iraqi village, it's clear that lots of money has been invested in these projects, and Netflix is looking to borrow a lot more. To the tune of over $1.2 billion.
As is Netflix's usual line of financial behavior, the company is going through with its annual equity offering of Senior Notes, to be paid back at later dates, and the latest announcement tops off at €1 billion, which comes out to $1.27 billion. Quite the hefty sum, this year beats out 2016's billion-dollar offerings, but doesn't match up with the $1.5 billion from 2015. To be expected, the company stated in the shareholder report that these funds would be used for acquiring various forms of programming, along with other non-specific points like "strategic transactions."
Outside of the hefty dollar amount, this latest announcement is notable for a couple of other reasons. One, the Notes are only being offered to interested parties outside of the United States, rather than mixing it up between the two as it's gone in the past. That could be a sign of the company's huge international expansion last year, opening up even more avenues for developing top-notch programming outside of the U.S. One could offer conjecture that Netflix isn't looking to do its borrowing process in the U.S. now that there's the very real chance we'll get to watch the streaming service's feature films getting theatrical releases, which would offer up a money stream that goes beyond subscriber numbers.
The second interesting bit about Netflix's announcement is that it's coming at the tail end of April, just six months after the last time it offered up its Notes for buyers/lenders. Granted, last year's came later than the previous years' had been, and perhaps the international approach plays into that as well. Either way it goes, these billions that come from the Notes are only a percentage of how much Netflix spends on its content on a yearly basis. I mean, Dave Chappelle alone got a $60 million payday for a trio of specials, and the company isn't one known for limiting creators' budgets. So we shouldn't expect to see Netflix's money-based behavior change any time soon, unless its quarterly expectations keep surpassing the actual numbers coming in.