It’s not a secret that Netflix is pushing their original content hard – so much they plan to make it half of their catalogue.That of course takes a lot more financing than licensing someone from other creators.
But when you figure that some recent Netflix originals will be the most expensive TV ever made, someone’s going to need a little money. Netflix announced earlier this week that they plan to take on $800 million of debt to finance new original content.
Will this move pay off? Netflix doesn’t announce how well specific shows are doing, but they wouldn’t be making this push if it wasn’t going to work. Netflix just announced they gained 3.57 million subscribers in the third quarter of 2016, nearly a million more than predicted. They also saw their stock post of 12 cents per share, twice as much as what analysts had predicted.
Earlier this month, Netflix agreed to pay a record breaking $40 million for a pair of Chris Rock stand up comedy specials, and this summer, they released their most expensive show yet, The Get Down, which cost $10 million per episode. Their upcoming series The Crown has a price tag of $13 million per episode.