Netflix incurs more debt as it plans on creating more original content to beat its rivals in the entertainment industry.
"Netflix and chill" might be your plan this weekend, but the top guys at the entertainment streaming company have no plans on chilling.
On Monday, October 24, 2016, Netflix announced that it will be taking on another $800m to fund original programmes. This will take Netflix's total debt (incurred from producing original content) to $3bn.
Netflix is the entertainment company that is responsible for pop culture hit shows such as 'Luke Cage' 'Dare Devil', 'Stranger Things', 'House of Cards', and 'Orange Is The New Black'.
Essentially with this new loan, Netflix has made it clear that it wants to sink more money in original TV shows of its own. It has gone to reduce the number of TV shows from other production houses on its streaming platform and has increased the number of original Netflix shows.
This is a bid to out pace HBO who has stellar hit TV series of its own most notably the 'Game of Thrones' series and 'Breaking Bad'.
While we are all happy that Netflix is developing more shows for us to chill some more, there are some that are sceptical about the company's ambitious plan.
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According to a new report, Netflix might be biting more than it can chew. One of the company's 2016 success stories 'The Get Down' directed by Baz Luhrmann is said to now cost $16m per episode.
The Hip-Hop periodical musical show is directed by one of the most extravagant directors in Hollywood. The production of the show's second season is currently happening in New York and it boasts of an expensive crew.
To put things more into perspective, an average episode of Game of Thrones is said to cost $10m.
Let's cross our fingers and hope Netflix picks the right TV shows to bet on.
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