Netflix Beats Estimates with New Subscribers

Netflix exceeded expectations for adding new subscribers during the third quarter of 2018, fueled by strong subscription growth in international markets, which brings its total global subscriber count to 137 million. Netflix said it expects to spend as much as $8 billion this year on purchasing content, which means you should expect to spend a lot more time scrolling through your Netflix without finding something you really want to watch. Having data on its consumers definitely helps Netflix predict what kinds of content it should invest in, indicating that "more than 80 million of its accounts have watched one or more of the romantic comedies it released this summer."

For Netflix to fund its new programming, it plans to sell about $2 billion junk bonds (aka high-interest debt with a grade of BB or lower), which would also push its debt load above $10 billion for the first time. Netflix has a market cap of about $140 billion, up 70% in 2018 alone.


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