In February , Netflix revealed its plan to invest $8 billion in nearly 700 original TV series and movies it wants to add to its offering this year, highlighting the service's heightened efforts to produce media content of its own. Today, the media service provider announced its intention to raise $2 billion in additional funding for its original content production push, among other purposes.
Netflix plans to secure the funding by offering about $2 billion aggregate principal amount of U.S. dollar-denominated and euro-denominated senior unsecured notes to qualified institutional buyers. The company said in its announcement:
"Netflix intends to use the net proceeds from this offering for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital, and potential acquisitions and strategic transactions."
The media service first confirmed in August last year that it would be spending a huge amount of money on original movies and TV series this year. Its latest move seems necessary in order for it to remain competitive in an increasingly growing segment.
Netflix's current approach to producing popular content such as Mystery Science Theater 3000: The Return, Master of None, Big Mouth, and Dear White People marks significant success in the company's strategy. It only makes sense for the entertainment giant to shore up its efforts with more funding.