The stock was falling 1.7% to $270.99 a share in early Monday trading, while the broader market was rising.
The move comes as Netflix is increasingly locked in competition with new entertainment streaming players such as Disney (DIS) - Get Walt Disney Company Report , Apple (AAPL) - Get Apple Inc. Report , Comcast (CMCSA) - Get Comcast Corporation Class A Report and Amazon's (AMZN) - Get Amazon.com, Inc. Report Amazon Prime Video. Disney already owns a huge suite of content options though Hulu, ESPN and its movie collection. Apple, through Apple TV Plus, doesn't yet have a sizable content slate, but analysts and investors note it can leverage its outsized cash position to soon invest in new content, which could threaten Netflix's pricing power.
Meanwhile, Netflix must continue to finance its content acquisition with debt, which makes some investors wary of the stock.
The interest rate has not been set and will be determined by demand for the bonds, according to Netflix.
Netflix shares are up just 2.9% year-to-date.
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