Netflix Seeks $1 Billion For New 2017 Original 4K UHD and HD Content
Stephan Jukic – April 26, 2017
Most of us love Netflix streaming and if we’re owners of 4K TVs, then the digital content service becomes even more important as one of the major sources of regular high quality 4K UHD home entertainment in the form of movies, documentaries and assorted TV series, many of them being original productions from the company itself.
Furthermore, all of these services are going to be expending considerably throughout 2017, with Netflix having announced in late 2016 that it would be delivering a further 1000 hours of new programming to its 2017 content roster, with 20 new original series and 30 new movies included in these listings, many of them to come in 4K UHD resolution and HDR mastering. One major example of a slightly rarer Netflix original movie production with serious A-list stars is in fact coming out next month. This being the new movie “War Machine” with Brad Pitt playing the part of a U.S Army general in the middle of a modern U.S counterinsurgency.
One aspect of all these impressive new production that many Netflix subscribers don’t think about as much is the cost of creating and delivering this content. As you might imagine if you pause to think about it, so many movies and shows aren’t cheap and for 2017 Netflix has announced that it will be spending a further $1.08 billion or so “from non-US persons” to fund their original series and movies. A large chunk of this money is also of course going toward funding “general corporate purposes”, to quote Netflix again, but a huge part of the $1 billion+ will indeed be for production and acquisitions of content.
The company is currently reporting some very decent revenue streams of $2.67 billion for the first quarter of 2017 alone but along with these large figures, Netflix also burns through plenty of cash in its efforts to gain subscribers and deliver a good home entertainment experience to them.
As for how that 1.08 billion (1 billion Euros) in funding will be collected by the company. Subscribers of Netflix in the U.S at least won’t yet have to worry about increased subscription fees. The company will be raising the funds with an offering of senior investment bond notes to investment buyers outside the United States, as explained in detail in their April 24th announcement. (PDF)
Story by 4k.com