A new report in the Los Angeles Times says that streaming giant Netflix is carrying just over $20 billion in short- and long-term debt in its ever-increasing race to create more content for voracious viewers. The 20-year-old company has borrowed a huge pile of money in this endeavor and by most measures, it’s incredibly successful: Netflix now has 104 million subscribers, which is a 25 percent increase over just last year.
Netflix is also a critical success, and it’s produced more than 50 original shows, starting with the breakout successes of House of Cards and Orange is the New Black. Its more recent offerings have also been critically acclaimed with shows like Master of None and Stranger Things racking up Emmy nominations. Overall, Netflix series have been nominated for 91 Emmy awards.
But the debt is real, and it’s large. However, the LA Times report says that investors in the company aren't concerned and the company needs to keep spending in the near term to keep up with what is an increasingly crowded space: though Netflix was a pioneer in online streaming and original programming, companies like Hulu and Amazon are now ramping up their own original series and finding success, too.
