Skip to main content

Red is the new black: Netflix deepens its debt for new original shows, expansion in Europe

Netflix announced today it will be taking on $400 million in new debt in order to produce more original content and, separately, expand its reach in Europe. The announcement came from CEO Reed Hastings and CFO David Wells in a letter to shareholders, with Hastings pointing out that the company’s overall $900 million in debt will still be low in comparison to its equity.

Netflix is far from being the only major corporation of its kind to take advantage of historically low interest rates recently, and using an influx of cash to churn out more hits like its award winning House of Cards,  and Orange is the New Black series certainly seems to make sense in the long term.

Recommended Videos

The company has an entire pipeline of new shows and series returns on the docket for 2014, including a new adult Sci-fi series from the Wachowski brothers (The Matrix) called Sense 8, and a series detailing the life of Pablo Escobar called Narco, as well as a forthcoming collaboration with Marvel about the superhero Daredevil, set for 2015. And those are just the ones we know about. With the extra money, Netflix is poised to dig further into the realm of original content, going head to head with premium cable networks like Showtime and HBO on an even grander scale.

The fresh cash will also help Netflix expand its reach into European markets, where the company has barely scratched the surface. The service is currently available only in the U.K., Nordic nations like Sweden and Norway, and the Netherlands. As the Wall Street Journal reports, European companies with similar streaming sites like Germany’s Sky Deutschland and France’s CanalPlay are taking the forthcoming expansion very seriously, prepping for battle as Netflix gears up for its European assault this year. The report also points out that Netflix’s skyrocketing stock, up 142% over the last year, is largely contingent on the foreseeable growth opportunities in the overseas market, which could lead to massive expansion of its overall subscriber rates.

We’ll have to wait and see how quickly Netflix can infiltrate larger markets in Europe where the streaming landscape is still at its infant stages. But with so much territory left to conquer, and a fairly consistent golden touch when it comes to original programming, the company’s bright future makes this latest divergence into the red look like barely a speck on the horizon.

Ryan Waniata
Former Home Theater & Entertainment Editor
Ryan Waniata is a multi-year veteran of the digital media industry, a lover of all things tech, audio, and TV, and a…
Best deals on Father’s Day gifts: 20 tech deals for Dad
Sony WH-1000XM5 wireless headphones hanging on wall hook in front of a mirror.

Father's Day is coming up, which means time is running out for those who haven't bought a gift for their dad. If you need help in choosing what to get, we've rounded up 20 tech deals you'll want to consider, ranging from affordable gadgets to premium devices. You're going to have to decide quickly though, for two reasons: These discounts may expire at any moment, and you'll want to receive them in time for Father's Day!

JBL Clip 5 portable Bluetooth speaker -- $50 $80 38% off

Read more
One for Dad, one for Grad: This Best Buy offer nets you a free TV
Sony Bravia 5

If June is the time to celebrate dads and grads, what better way to do so than a pair of magnificent TVs? Well, quite easily if one is free. Now through June 22, when you buy a 2025 edition 98-inch Sony Bravia 5 Mini LED from Best Buy's shop you also get a 2023 edition 65-inch Sony Bravia XR X90L, which retails at $1,200 and — just to show you how generous Best Buy is being — happens to be one of Best Buy's highest rated TVs ever (and we rated it pretty highly, too). Check out the combo for yourself via the button below, or see why this bundle is such a good offer (beyond just being a savings of $1,200 with the free TV) by reading on.

Why you should buy the Best Buy Bravia TV bundle

Read more
Save $269 on our favorite open-back headphones and experience music in a whole new way
Man wearing Sennheiser HD 660S2 open-back headphones.

We may have recently given Sennheiser a bit of flack for launching earbuds that look like AirPods (which is a pretty common thing to do) but that doesn't mean they don't have audiophile-grade offerings. The open-back Sennheiser HD 660S2 are a pretty good example of that. They probably flew under your radar, though, because of their standard price in excess of $600. They're typically rank No. 2 by cost in our list of the best headphones, right after the $1,000+ Dali IO-12. But, right now, with this 40% discount, they're actually cheaper than Apple's AirPods Max. So, if you want to check out audiophile headphones for $411 (that's $269 off their usual price of $680) be sure to tap the button below. Or, keep reading for our take.

Why you should buy the Sennheiser HD 660S2

Read more