Netflix—-A Fiscal Trainwreck That Would Even Embarrass The US Congress

But let’s not forget the price Netflix is currently paying for that growth…The company has burned $1.7 billion in cash this year through the third quarter.  So every new subscriber comes at a giant loss.

And Netflix is making up for those losses with debt.The company has $8.3 billion in long-term debt, up from $6.5 billion at the end of 2017. And it’s paid $291 million in interest so far this year.

With interest rates rising, that interest expense is only going up. The company has also spent $6.9 billion on content this year (meaning it should surpass its estimates of $7-8 billion). And it’s on the hook to pay out another $18.6 billion for content in the future.