As the battle for streaming customers heats up, Netflix plans to raise another $2 billion in debt in order to finance new original content.
Netflix said it plans to issue junk-rated bonds denominated in dollars and euros. It did not specify maturities but said it would use the proceeds for a range of purposes, including content, production and development and potential acquisitions.
The company is facing highly competitive offerings from deep-pocketed rivals Walt Disney Co. and Apple Inc. that will launch in November. Disney-plus is priced at just $6.99 a month compared with the $8.99 Netflix charges for its basic plan… The Apple TV+ offering is priced at $4.99 a month and will be free for one year with the purchase of a new Apple device.
Those services will be followed by offerings from Comcast Corp.’s NBCUniversal service and AT&T Inc.’s HBO Max are due in spring 2020. Netflix is already competing with services from Amazon.com and Hulu.
MacDailyNews Take: Apple TV+, at just $4.99 per month, doesn’t have to disrupt Netflix by taking subscribers; it’s additive. Most people who already subscribe to Netflix will simply add Apple TV+, not drop Netflix for it. Many, tens of millions in the first year alone, will get Apple TV+ for free with the purchase of any iPhone, iPad, Apple TV, iPod touch, or Mac!