With its big push into producing exclusive programming, Netflix 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.
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.
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The article Netflix's Creeping Debt Problem originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.