UPDATE 7/31/17 11:20 P.M.: Netflix reached out to VIBE, stating that The Los Angeles Times inaccurately noted the streaming service’s debt as $15.7 billion. By contrast, Netflix reportedly has a total gross debt of $4.8 billion; it’s equity market value is roughly $75 billion.
Are your days of “Netflix and chill” coming to a tragic end? The streaming service, which offers a variety of feature films, TV episodes and original shows has found itself swimming in debt—$20.54 billion of debt to be exact. Ironically, the company’s mission to create unique programming may be the cause for its possible demise, The Los Angeles Times reports.
The company’s stock is reportedly up by 50 percent for the year, but some experts fear that the debt could keep piling on. And while Netflix has accumulated 104 million subscribers worldwide, the company’s spending is still high in comparison. “The company is pouring money into expensive prestige projects and expects to spend at least $6 billion in content this year,” according to the LA Times’ report. Netflix’s excessive spending is no secret. In fact, it was suggested that the company’s original series The Get Down was cancelled in relation to its production costs.
Over the past couple of years, Netflix has skyrocketed to the top as a premier streaming service for entertainment. While other programs such as Hulu and HBO are giving the company a run for their money with the success of shows like Insecure or Game of Thrones, Netflix has seemed to maintain a steady following thanks to its original programming. A number of its shows, including Stranger Things (returning on Oct. 27), 13 Reasons Why and Orange is the New Black have broken barriers for the service.
Despite its financial woes, Netflix doesn’t show signs of slowing down anytime soon. Some experts believe the company will need a thorough reevaluation in the next couple of years, but its current business model isn’t far off from other companies. It’s unclear what this outstanding amount of debt means in the long run, but at least for the time being, our weekends of binge-watching are still safe.