Friday, May 24, 2013

Netflix's Creeping Debt Problem

With its big push into producing exclusive programming, Netflix  (NASDAQ: NFLX  ) has had to take on more debt. What's more, the company says that it plans to keep spending on original content, and to fund that investment through more debt in the future.

NFLX Long Term Debt Chart

NFLX Long Term Debt data by YCharts.

In the video below, Fool contributor Demitrios Kalogeropoulos argues that the gamble has been a good one, as exclusive shows like House of Cards have created a halo effect around the service that's keeping existing subscribers longer, and making it easier for Netflix to sign up new members. Still, that only works as long as the company's subscriber growth continues, and as long as the hits keep on coming.

Can Netflix keep up its performance for investors as well? To get The Motley Fool's perspective, check out our premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so click here and claim your copy today.

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