Netflix’s binge-spending on content isn’t expected to slow down.
The streamer spent a whopping $12.04 billion in cash on content last year, up 35% from $8.9 billion in 2017, according to its fourth-quarter 2018 earnings report.
For the year ahead, Wall Street analysts see that climbing 25% — to around $15 billion on a gross cash basis. Netflix will continue to burn cash, telling investors Thursday that it expects to record negative $3 billion in free cash flow in 2019 (similar to last year), and that it intends to continue to turn to debt markets to fund the spending rate. The company had $10.4 billion in long-term debt at the end of 2018, versus $6.5 billion year earlier.
Source: Netflix Content Spending Expected to Hit $15 Billion in 2019 – Variety