Netflix is taking on another $800 million in debt

Netflix is raising another $800 million dollars of debt, the company announced on Monday. This brings Netflix’s total long-term debt to over $3 billion, and a big chunk of the new money will likely go to fund the company’s efforts in original content.

In a press release, Netflix said it will “use net proceeds from this offering for general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.” In a word: anything.

But content spending is one item that’s certainly ramping up. Last week, Netflix announced that its budget for shows and movies would rise to $6 billion in 2017. That would likely put Netflix in the No. 2 spot for content spending behind ESPN (which will spend around $7.3 billion on content in 2016, according to CNBC).

A large (though unspecified) part of that will go toward Netflix’s original shows and movies.

Netflix was particularly rosy about originals in its Q3 letter to investors last week. Netflix overperformed Wall Street expectations for Q3 soundly, and credited its huge beat on subscriber additions to “excitement around Netflix original content.” Netflix particularly mentioned cult hit “Stranger Things” and the second season of “Narcos.”

Netflix CEO Reed Hastings also sung the praises of upcoming Netflix original series “The Crown.”

“We have a show coming up, ‘The Crown,’ which is some of the most impressive television I have ever seen,” he said on Netflix’s earnings call. The show, which chronicles the life of Queen Elizabeth II, will be released on November 4.

Netflix CFO David Wells has said that eventually Netflix’s goal is to have its content have about a 50/50 split between licensed and original work.

Here’s a chart that shows how Netflix has increased its original programming, measured by hours of content, over the last six years.

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