Analysts warn: Debt could cut Netflix

Netflix released a report this weekend that shows that the number of users is growing. During the last quarter, growth was 25 percent, giving 104 million paid customers globally.

But not everything is gold and forest green. A review shows that Netflix has a fast-growing mountain of debt Los Angeles Times Made. In the most recent quarterly report, liabilities were at $ 20.54 billion, a significant increase over the same period last year.

Read more: Netflix Quarterly Registration

The explanation for the increased loan burden is written in the original series – an area where Netflix is ​​investing heavily in to keep attracting new users. In 2017, the broadcast service is expected to spend at least $ 6 billion on new productions. The plan is that ultimately, half the width will be its material.

In the past year, Netflix’s stake has increased 100 percent and the future is bright, but now there are those who claim Netflix is ​​a bubble.
Nobody is the dominant player forever. I think they will need a little luck not to plunge into debt when growth finally slows, says the media advisor. Mike Voorhouse vid Magid Advisors up to LA Times.

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