Once upon a time, I was a Netflix (NASDAQ: NFLX) shareholder. But then I soured on the in-house content creation strategy, versus licensing content from existing studios.

The content-creation move was necessary to ensure that it wouldn't be dependent on its rivals. However, creating TV shows and movies is expensive, and has only become more expensive in recent years as other studios scrambled to emulate Netflix's strategy and filled up their services with new titles.

The company hasn't been all that profitable on this journey (on a free-cash-flow basis), so it resorted to funding its content strategy with debt. 

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Source Fool.com