Why Netflix Is Returning to the Junk-Bond Market

Why Netflix Is Returning to the Junk-Bond Market

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses Netflix's financial strategy, focusing on its cash burn, debt, and content spending. Despite being cash flow negative, Netflix's bonds perform well due to its content strategy. The company plans to reduce borrowing and move towards self-funding, although cash burn is expected to continue through 2021. The transcript also explores competition from companies like Disney, Amazon, and Apple, and the potential for Netflix to be acquired by these strong investment-grade competitors.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategy is Netflix planning to adopt regarding its borrowing in the coming years?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways could potential acquirers of Netflix benefit its creditors?

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