SAN FRANCISCO (AP) — Netflix is sinking deeper into debt in its relentless pursuit of more viewers, leaving the company little margin for error as it tries to build the world’s biggest video subscription service.
The big burden that Netflix is shouldering hasn’t been a major concern on Wall Street so far, as CEO Reed Hastings’ strategy has been paying off.
The billions of dollars that Netflix has borrowed to pay for exclusive series such as “Stranger Things” has helped its service more than triple its global audience during the past four years. It had 109 million subscribers worldwide through September.
That figure includes an additional 5.3 million subscribers during the July-September period. Monday’s disclosure has exceeded analyst projections, lifting Netflix’s stock to new highs in extended trading.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.