Netflix to raise $400 million for European expansion

Netflix has announced that it will raise $400 million in new debt to fund its proposed expansion in to Europe.

The company will raise the money by offering institutional investors 10-year senior notes.

According to Variety, the on-demand service provider will also use the funds to invest in more original content following the success of its Emmy award winning series House of Cards and the Oscar nominated documentary The Square.

Despite being available in 41 countries, the company’s international standing is currently dwarfed by its domestic status.

In the US, Netflix gained 2.3 million new subscribers last year raising its tally to 33.4 million domestic members. Compare that to the 10.93 million subscribers it has internationally and you can see why it is pursuing an overseas expansion.

Analysts claim that Netflix is seeking to capitalise on the potentially lucrative VOD market in Western Europe, which currently contains 134 million broadband equipped homes.

Source: Variety, TechCrunch