Netflix hook for $20 billion. Can it keep spending its way to success?

whilst Netflix become founded, the net became younger, DVDs have been famous and no one considered looking a movie streamed on line.

20 years later, Netflix’s transformation from an underdog DVD-by way of-mail service to Hollywood powerhouse — one that has redefined how tv and movies are produced and fed on — has been great.

the worldwide streaming massive these days boasts a few stunning stats: 104 million subscribers international, up 25% from ultimate year and nearly quadruple from five years in the past. Its series and films account for extra than a third of all prime-time download net visitors in North the usa. Its extra than 50 original indicates garnered ninety one Emmy Award nominations this yr, second handiest to top class cable service HBO.

but there’s some other set of numbers that could spell trouble for the business enterprise’s breakneck growth. Netflix accounts has accrued a hefty $20.fifty four billion in lengthy-term debt and obligations in its attempt to provide more unique content material. The Los Gatos, Calif.-based totally enterprise hopes extra new suggests will capture more subscribers, its number one revenue driving force. It’s also below pressure to preserve spending on new indicates as streaming rivals along with Amazon and Hulu amplify their very own slates of authentic programming.