Netflix is booming on the back of its subscribers outside of the United States. The Silicon Valley-based streaming service added 9.9 million paid subscribers in the first six months of 2017.
Last year Netflix burned through $1.7 billion creating original content – an estimated 126 series or films to offer something unique to its global web subscribers. Netflix is projecting an even wider gap in 2017, with free cash flow – that’s cash from operations minus capital expenditures – worsening to a $2 billion outflow.
Netflix hasn’t had a positive free cash flow for three years and expects negative cash flow “for many years”, according to a letter to investors on Monday.
None of this is news: the company has to pay money upfront to produce its programming and has announced plans to raise more than $1 billion outside of the US through a debt offering to fund its global expansion.
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