Netflix Just Slashed Its Content Budget by 10%
Netflix (NASDAQ: NFLX), like every major media company in the world, has halted production on most of its shows and films amid the coronavirus pandemic.
With productions halted, Netflix expects its cash spending to come in much lower than originally expected for 2020. It originally anticipated negative $2.5 billion in free cash flow for the year, but management now expects cash burn to total less than $1 billion. In other words, it's suspending about $1.5 billion in planned content spend for the year -- about 10% of its $15 billion content budget.
The move certainly isn't ideal; management would much rather spend that extra $1.5 billion. But management believes it's in a much better position to weather the production delays than competitors such as Disney (NYSE: DIS).
Source Fool.com
