Jill Goldsmith Co-Business EditorRatings agency S&P upgraded Netflix’ corporate credit Tuesday, figuring the giant streamer will spend $3 billion less than anticipated this year on content production.
It cited accelerated subscriber growth, improving margins, reduced cash flow deficits over the next two years and positive trends in SVOD.The agency is basically saying that reduced spend from pandemic-related production shutdowns will work out to improved free operating cash flow, or FOCF, a key metric, boosting Netflix’ financial profile going forward.
Netflix has already been benefitting from accelerated subscriber growth and increased user engagement as consumer spend more time at home.
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