By: Felix G.
Netflix is currently striving to grow, and a way that they are doing that is taking $800 million in debt to be able to make more Netflix original TV shows and films. They were already $2.37 billion in debt but they think that these Netflix original shows will boost their subscription rate more than other TV shows and films. Netflix also wants their catalog to be at least fifty percent original content.
They are spending so much now to grow their library after they have shrunk by 50% in the last four years, as they have lost many movie and TV rights. Even though they are cutting a lot of third party content the fact that they are striving for a lot of original content is good and will hopefully get more people to subscribe to and use Netflix. With Netflix taking this $3 billion debt, they are looking to earn it back with a lot of new subscriptions, they are willing to get this debt right now, all in order to grow as a company. This deal for $800 million dollars is being talked about by the Netflix and investors. If these Netflix original series becomes really popular, people will have no choice but to get Netflix to see them.
Other Television networks are not in favor of these Netflix originals, FX network president John landgraf said, regarding Netflix that “It would be particularly bad if one anyone in one company … were able to seize a 40 or 50 or 60 percent market share in storytelling.” The only thing that will change for us viewers, is that we will have less third party series, more Netflix originals, and potentially less things on the catalog in general
Although this deal and plan is still in the works, this could have big changes coming to Netflix, and changes to Netflix frequenters life. The plans could rocket ahead the popularity of Netflix, although it is already the most popular streaming service worldwide.