Netflix sinking deeper into debt to fuel subscriber growth

October 16, 2017 at 4:23 p.m. | Updated October 16, 2017 at 4:30 p.m.

by Associated Press

FILE - In this Friday, Jan. 17, 2014, file photo, a person displays Netflix on a tablet in North Andover, Mass. Netflix is taking on increasing amounts of debt in order to fund its $6 billion annual commitment to original programming. Investors so far aren't fazed by the spending given continued growth in subscribers, but some analysts warn that the company could be on the verge of overextending itself. (AP Photo/Elise Amendola, File)
FILE - In this Friday, Jan. 17, 2014, file photo, a person displays Netflix on a tablet in North Andover, Mass. Netflix is taking on increasing amounts of debt in order to fund its $6 billion annual commitment to original programming. Investors so far aren't fazed by the spending given continued growth in subscribers, but some analysts warn that the company could be on the verge of overextending itself. (AP Photo/Elise Amendola, File)

SAN FRANCISCO (AP) - Netflix is sinking deeper into debt in its relentless pursuit of more viewers, leaving the company little margin for error as it tries to build the world's biggest video subscription service.

The big burden that Netflix is shouldering hasn't been a major concern on Wall Street so far, as CEO Reed Hastings' strategy has been paying off.

The billions of dollars that Netflix has borrowed to pay for exclusive series such as "Stranger Things" has helped its service more than triple its global audience during the past four years. It had 109 million subscribers worldwide through September.

That figure includes an additional 5.3 million subscribers during the July-September period. Monday's disclosure has exceeded analyst projections, lifting Netflix's stock to new highs in extended trading.

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