Why Netflix Is Selling $2 Billion of Junk Bonds

The transcript discusses Netflix's strategy of borrowing money to invest in original programming, which attracts more subscribers and pleases Wall Street. This cycle allows Netflix to raise funds at favorable rates. The company uses accounting methods to spread out costs over time, making their spending appear lower. Netflix aims to increase viewer time by offering new content globally, including in Europe. While some investors worry about the sustainability of Netflix's debt, the company continues to grow rapidly. Competitors like Apple and Amazon have different financial strategies, often relying on their cash reserves.

What concerns do analysts have regarding Netflix's model and its sustainability?

How do Netflix's competitors differ in their approach to content spending compared to Netflix?