This story has been updated; a previous version mistakenly identified the company that would download Friends and Office from Netflix.
Netflix Inc. plans to raise another $ 2 billion in debt as it moves to win the funding needed for new content as the battle for streaming customers is heated by slate offers.
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stated that it plans to issue junk-denominated bonds denominated in dollars and euros. He did not specify the dates but said he would use the proceeds for a number of purposes, including content, production and development and potential acquisitions.
The company faces highly competitive proposals from rivals with Walt Disney Co.'s deep pockets.
and Apple Inc.
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to launch in November. Disney-plus is priced at just $ 6.99 a month, compared to $ 8.99 a fee for Netflix for its core plan, and will include its entire library of movies and TV shows, including the Marvel and Star Wars franchises. Comcast Corp. & # 39; s
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NBCUniversal will download some of its existing content from Netflix after its license agreements, including Friends and Office, have expired, and have become popular with millennial audiences.
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Apple The TV + offer is priced at $ 4.99 per month and will be free for one year with the purchase of a new Apple device. So far, the content table looks thin compared to Netflix, but the iPhone maker is expected to grow through acquisition.
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These services will be followed by offers from Peacock's service from Comcast and AT&T Inc.
HBO Max is coming in the spring of 2020. Netflix is already competing with services from Amazon.com
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Just last week, Netflix acknowledged that on-going competition could hurt new subscribers' growth. The company said it expects subscriber growth to decline year by year in the typically strong fourth quarter and year-round, even with a strong list of new shows.
"The launch of these new services will be noisy," Netflix executives say in a quarterly letter to shareholders. "There may be some modest progress toward our near-term growth, and we have tried to point it at our direction."
For more, read: Netflix finally acknowledges the obvious: Apple's competition and Disney will harm
Netflix primarily finances its acquisition and production by issuing unwanted bonds, putting its long-term debt at about $ 12.5 billion. The company's most active bonds – 5.875%, maturing in November 2028, were last quoted at a yield of 271 basis points over comparable cashiers, according to MarketAxess's bond trading platform.
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has accumulated about 20% and the Dow Jones Industrial Average
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has accumulated 15%.
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