Netflix Is More Than $20 Billion In Debt

It may not seem like it but the streaming Goliath, Netflix is actually up to its eyeballs in debt. A recent reports says that the company is carrying $20.54 billion in both short and long-term debt. The debt can be attributed to a massive boom in spending for the company’s original content department. Its not like they don’t have anything to show for all that spending though.

Netflix’s more than 50 original shows have racked up 91 Emmy nominations this year alone. The company hopes to use their success with original content to dive subscriptions up. So far, this tactic seems to be working. Their subscriber base is up 25% from last year. They currently boast over 104 million subscribers. Quadruple where they were just five short years ago.

While the company’s revenue continues to increase, they do expect to be “to be free-cash-flow negative for many years.” While it seems like nothing can stop Netflix, some experts are speculating that the ‘Netflix Bubble’ might pop in the foreseeable future if the company fails to deliver content which continues to attract new subscribers.

Via LA Times 

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