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Netflix said that it will raise about $1bn in debt, a day after announcing that it had added more than twice as many subscribers as it had forecast in the first quarter.
The funds will be used to acquire new shows, produce original content and for possible acquisitions, the streaming said, as many studios are suspending production due to the coronavirus-induced restrictions in place.
Netflix said in its first quarter earnings call on Tuesday that it would continue raising debt to fund its content, although production has halted in almost all countries besides Iceland and South Korea.
Netflix has more than doubled the number of new subscribers it expected in the last three months as more people signed up amid the coronavirus pandemic.
The streaming giant announced on Tuesday that it added 15.77 million new paid subscribers globally, well above the 7 million it had expected, as people worldwide sought ways to entertain themselves during the lockdowns.
The company acknowledged that the huge surge in membership and audience was probably temporary.
“In our 20+ year history, we have never seen a future more uncertain or unsettling. The coronavirus has reached every corner of the world and, in the absence of a widespread treatment or vaccine, no one knows how or when this terrible crisis will end,” the company said in a statement.
“At Netflix, we’re acutely aware that we are fortunate to have a service that is even more meaningful to people confined at home, and which we can operate remotely with minimal disruption in the short to medium term. Like other home entertainment services, we’re seeing temporarily higher viewing and increased membership growth.”
“While we’re certainly impacted by the global production pause, we expect to continue to be able to provide a terrific variety of new titles throughout 2020 and 2021,” the statement said.