Could a $20 Billion Cash Deficit Crush Netflix?

Could a $20 Billion Cash Deficit Crush Netflix?

Netflix (NASDAQ: NFLX) has spent its way to success.

The company has built a global subscriber base of 99 million paid members, adding about 5 million in its most-recent quarter alone. It has also grown revenue by over 30% each of the past four quarters, and the streaming leader expects those gains to continue as it grows around the world.

Netflix has accomplished this by shifting from a strategy of licensing already-aired television shows and movies to producing its own. That's an expensive proposition, but one which the streaming giant has so far been very successful with. It's also a potential money pit if the company produces more pricey failures like Sense8 and The Get Down.

Continue reading

Source: Fool.com