How can Netflix Survive?

The cash from financing raises some serious questions about some of the other numbers in Netflix’s second quarter earnings report which don’t add up. First there’s the income of $362.09 million; if Netflix lost $1.9 billion from its operations – where did that come from?

The cynic in me will say from borrowing, which means it is not income. Funds that you borrow have to be paid back or written off at some point. That goes doubly so for the kind of money Netflix is probably borrowing; namely corporate paper or private equity.

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