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Netflix $20 Billion In Debt


AmericanGUY

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AmericanGUY

According to the LA Times, Netflix has racked up a hefty bill of $20.54 billion in long term and short term debt in its effort to create more original content. The company hoped producing more original content would help increase subscriber growth which has been a contributing factor to revenue.


Despite having 104 million subscribers worldwide, some industry experts say Netflix may soon have to step into reality if they fail to produce hit shows. “Nobody is ever the dominant player forever,” said Mike Vorhaus, president of Magid Advisors, a media, and digital video consultancy. “I think they're going to need some luck in not drowning in debt in the ultimate slowdown of growth.” A lot of Netflix's expenses come from licensing TV series and movies.

source: theshaderoom.com

꧁ 𝕛'𝕧𝕖𝕦𝕩 𝕡𝕒𝕤 𝕞𝕠𝕦𝕣𝕚𝕣 𝕥𝕠𝕦𝕥𝕖 𝕤𝕖𝕦𝕝𝕖 ꧂
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En_Sabah_Nur

That explains where the budget comes from then, at least when it comes down to creating their top notch original programming...  I always wondered where they got the money for all this from?!?!?!  🤔

 

Egypt. W
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OBEY

I was thinking about that too :poot: 

Like, networks like ABC charge 150k for a 30 seconds commercial during the TV show "Scandal" so that helps pay the actors, the sets, etc. But with Netflix i was thinking the subscription revenue was probably not enough :oprah: 

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Talent

Sense8, ha revenge! 

 

🔵 - Banned because I quoted a stupid meme. Literally. So, yeah.
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Ryusei

whaaaat they have a lot of popular shows tho? And with all the subscribers how are they in debt

Musery
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TimisaMonster

Most of their original content is weak. They need to make better shows and stop rushing out any script that lands on their desk hoping something sticks with the audience...

:saladga: I too was wondering how do they have the money to make so many shows and movies!

 

Stream my new single, 💜"Heartbeat"💜, on Spotify!
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PunkTheFunk

Netflix and Chill?

More like Netflix and Unpaid Bills

todomundoaqui.gif

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Tom Nook

They may have to raise subscription prices or invest in Ad Revenue like Hulu Plus sometimes does 

Uh Red Wine... Convict... Gah Gah...
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socotra
6 minutes ago, Alolan Raichu said:

They may have to raise subscription prices or invest in Ad Revenue like Hulu Plus sometimes does 

Hulu Plus still has ads?

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Tom Nook
Just now, Indyl said:

Hulu Plus still has ads?

Some licenses that Hulu has still reenforce advertisements but not all of them 

Uh Red Wine... Convict... Gah Gah...
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kvnrp
23 minutes ago, Ryusei said:

whaaaat they have a lot of popular shows tho? And with all the subscribers how are they in debt

A show like Sense8, Marco Polo or House of Cards is not cheap.

No wonder the big stations execpt for premium cable like HBO or AMC are only doing a very few big budget shows.

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freebit

They made a mistake getting rid of a chunk of their library in favor of these original series. I just signed up for Hulu about a month ago and I'm already using if far more than I do Netflix - there's just more choice. I'd rather watch a older, or harder to find series or movie than most of these current Netflix Originals.

16 minutes ago, TimisaMonster said:

Most of their original content is weak. They need to make better shows and stop rushing out any script that lands on their desk hoping something sticks with the audience...

:saladga: I too was wondering how do they have the money to make so many shows and movies!

 

This. I feel like a Netflix original used to come with some sort of signifier of quality. They should have just stayed more selective.

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