Netflix has run up quite a tab with investors.
Streaming giant Netflix has a ton of outstanding debt that it owes investors, according to the Los Angeles Times.
New reports suggest that the company has a little over $20 billion dollars in both short and long-term debt, with about three-quarters of that total reported as short-term. The reason behind this growing pile of debt is two-fold: they continue to grow their company by adding new content, which will allegedly cost them in the neighborhood of $6 billion, and they're trying to keep up with the likes of Amazon Prime and Hulu, who are also upping the ante in terms of the quality of their content.
Investors are supposedly comfortable with Netflix's spending habits, operating from the mindset of spending money in order to make money, but industry sources have also warned that the company's financial bubble could burst if all this new content they've ordered doesn't attract a suitable amount of new subscribers. Only time will tell which side will ultimately ring true.