:00:00. > :00:09.The website. -- lots more as always on our website.
:00:10. > :00:12.Now on BBC News, all the latest business news live from Singapore,
:00:13. > :00:24.Crown's biggest shareholder James Packer says he's worried about his
:00:25. > :00:27.employees detained in China. And a jump in new subscribers.
:00:28. > :00:38.Netflix shares rise in after-hours trading.
:00:39. > :00:43.Good morning and welcome to Asia Business Report, from Singapore,
:00:44. > :00:47.with me, Mariko Oi. After sharing some 14% on Monday shares in Crown
:00:48. > :00:52.resorts have started trading with a modest recovery, after the company
:00:53. > :00:56.confirmed some of its staff has been detained in China. It is controlling
:00:57. > :01:00.shareholder billionaire James Packer has issued a statement saying he is
:01:01. > :01:04.deeply concerned for their welfare. Crown has yet to make contact with
:01:05. > :01:11.them, he says. Earlier I spoke to a chief strategist at is -- the
:01:12. > :01:15.company that has casino companies in Asia are under investing in their
:01:16. > :01:19.government relations. I think the pressure will continue because
:01:20. > :01:23.basically the mainland Chinese government in Beijing really wants
:01:24. > :01:27.to do everything they can to ensure that the casino gaming industry
:01:28. > :01:33.remains in check and that they remain in control of it, as it
:01:34. > :01:36.relates to their citizens and how their citizens travel abroad to
:01:37. > :01:40.partake in casino gaming activity. So it seems as though the big
:01:41. > :01:47.question is what kind of activity was the Crown employee executives
:01:48. > :01:50.involved in, as it relates to possible violations in mainland
:01:51. > :01:54.Chinese law? If there were violations it will create
:01:55. > :01:58.interesting dynamics because Crown is an Australian company and
:01:59. > :02:03.involves probably mostly Australian nationals. It is not the first time
:02:04. > :02:08.that Chinese authorities detained foreign casino operators. They
:02:09. > :02:13.arrested some South Korean managers as well. A very worrying time for
:02:14. > :02:18.family members, but what can these casino operators do in China,
:02:19. > :02:24.foreign casino operators? Basically the government of China is sending a
:02:25. > :02:29.message to the entire industry, that for any kind of casino gaming that
:02:30. > :02:34.exists beyond Macau is there has to be very strong sensitivity towards
:02:35. > :02:37.what kind of attractions take place between these companies marketing
:02:38. > :02:42.their services and the citizens of China. I think there are tremendous
:02:43. > :02:45.implications for Crown resorts because if you even take their
:02:46. > :02:50.brand-new project, their billion-dollar project that is going
:02:51. > :02:53.to be coming up in Sydney, the question is if the mainland Chinese
:02:54. > :02:57.citizens aren't there to be the customers of that project who will
:02:58. > :03:04.be? What about the impact on the Cowell? -- Mac Cowell? Our view is
:03:05. > :03:10.that it won't be too heavily impacted via this action. Our view
:03:11. > :03:14.is that actually in indirect way this is kind of a protective measure
:03:15. > :03:21.for Macau gaming industry and the mainland Chinese government is
:03:22. > :03:26.saying the casino operators, we prefer citizens to go to Macau
:03:27. > :03:33.rather than places like South Korea or Australia and if they do go
:03:34. > :03:37.abroad widowed want them advertising the citizens in mainland China. In
:03:38. > :03:41.other news:, Filipino President Rodrigo Duterte begins his four-day
:03:42. > :03:45.visit to China, his first since taking office. He is expected to
:03:46. > :03:51.discuss deepening economic ties between the countries but has
:03:52. > :03:56.reported being ruled out talks -- ruling out talks over dispute in the
:03:57. > :04:00.South China Sea. One of the winners today were shares
:04:01. > :04:10.of online video streaming firm Netflix which produces popular shows
:04:11. > :04:13.like Orange is the New Black and House of Cards. They rose by almost
:04:14. > :04:17.20% in after-hours trading after the company said they added 3.6 million
:04:18. > :04:20.new subscribers in the last three months. Earlier I spoke to a media
:04:21. > :04:26.expert who now heads the Asia business for a regional rival to
:04:27. > :04:31.Netflix, iFlix. He said he wasn't surprised by the latest results. We
:04:32. > :04:36.aren't so surprised because we see a major revolution happening in
:04:37. > :04:38.entertainment, the shift from entertainment targeted to the
:04:39. > :04:45.household to the individual, meaning there's huge growth potential and I
:04:46. > :04:48.think certainly we are seeing big growth across the region. You say
:04:49. > :04:53.things are getting better for the industry but there have been many
:04:54. > :04:57.challenges, which has affected the performance of Netflix over the past
:04:58. > :05:00.few years. So I these challenges, including the numbers of people
:05:01. > :05:06.cancelling the service, are they gone? The path to the revolution is
:05:07. > :05:12.a bit choppy, but the challenge is really do get localised and meet the
:05:13. > :05:18.local needs. As long as you are addressing local needs you will have
:05:19. > :05:21.growth. Our main challenge is to meet our growth and rolling out to
:05:22. > :05:24.the countries where we are getting heavy demand for services from
:05:25. > :05:34.customers, as well as partners. Staying with US earnings, a big boom
:05:35. > :05:40.with revenues at IBM to -- declining as the company tries to redefine
:05:41. > :05:45.itself. Net income for the third quarter of the year fell to $2.85
:05:46. > :05:50.billion. Cloud computing revenue surged by 44%, giving hope to the
:05:51. > :05:55.belief that they can shift their focus to more lucrative sectors.
:05:56. > :06:00.These are is losing its CEO because of San Francisco. He is resigning
:06:01. > :06:04.after four years leading the company because he said being based on the
:06:05. > :06:08.west coast has been difficult for his personal life. The former
:06:09. > :06:11.president of American Express Alfred Kelly will replace him at the end of
:06:12. > :06:16.the month. After years of a steady rise,
:06:17. > :06:20.property prices in Singapore have been on somewhat of a rollercoaster
:06:21. > :06:25.ride lately. Elsewhere in the region, cooling measures have driven
:06:26. > :06:30.down prices and China's slowdown is also affecting the industry. One
:06:31. > :06:38.person with a finger on the pulse is the founder of the region's biggest
:06:39. > :06:42.online poverty portal. We spoke to them about how the economic slowdown
:06:43. > :06:46.has hit property prices. It depends what side of the fence is hit. If
:06:47. > :06:51.you are a tenant or prospective buyer you are rubbing your hands
:06:52. > :06:54.with glee because there are some great opportunities, especially if
:06:55. > :06:58.you are cash rich. As a tenant you can negotiate up to a 25% drop in
:06:59. > :07:03.your rental agreement from two years ago and similar for prospective
:07:04. > :07:09.buyers. On the other side, if you are an owner or in -- investor you
:07:10. > :07:13.are struggling because less demand, the population isn't growing as
:07:14. > :07:17.fast, rental prices are coming down, vacancy rates are increasing and on
:07:18. > :07:24.top of that the real estate developers are struggling because
:07:25. > :07:30.some of them have made a commitment in the next three to five years to
:07:31. > :07:36.are of money, buy land, develop it and sell at it at a higher price
:07:37. > :07:40.than they are getting now. So there is a time duration on the market
:07:41. > :07:44.that's a pressure point for developers and also for the owners.
:07:45. > :07:50.Many entrepreneurs experience failure before they taste success
:07:51. > :07:57.and one of them is on university dropout for New Zealand who had more
:07:58. > :08:02.than $500 million in debts from two failed companies, but now runs a
:08:03. > :08:09.thriving business called 90 Seconds. We had a look at his fifth start up
:08:10. > :08:15.a video production platform based -- which has now expanded to cities
:08:16. > :08:26.like San Francisco and Sydney. 90 Seconds. Has people all over the
:08:27. > :08:30.world who can shoot, or do graphics, all professionals, and on the other
:08:31. > :08:35.side we have brands that are making lots of video content. Normally they
:08:36. > :08:39.go to production companies and what this company does is let them do it
:08:40. > :08:43.in the cloud. We have 6000 people across 87 countries, so you can
:08:44. > :08:47.imagine what that's like. You are looking for a gig, you worried
:08:48. > :08:54.someone like Manila, Cambodia, London, and suddenly a gig pops up,
:08:55. > :08:59.it is ready to go. Before now the idea was you build a business, you
:09:00. > :09:03.hire a bunch of people, you get a price with the customer and you try
:09:04. > :09:07.to maximise that margin and you have to manage these people, which are
:09:08. > :09:11.effectively on. In a gig economy you don't own the people who do the
:09:12. > :09:15.work, they are there on time and you just help them turn their time in
:09:16. > :09:20.the money. Is it going in the right direction? I have two views. On one
:09:21. > :09:24.side, as someone building a platform, I can see the opportunity
:09:25. > :09:28.to do this and make life for everybody, but it isn't as simple as
:09:29. > :09:32.coming in, building a technology platform, getting the band on it. By
:09:33. > :09:36.no means. This is disrupting people's income flow and we do that
:09:37. > :09:41.it is very sensitive, whether they will rent a house or buy a house,
:09:42. > :09:46.where they might live, what they might spend. Our job is knowing how
:09:47. > :09:50.to make this work for everybody and it is something we have to keep
:09:51. > :09:54.asking and keep solving as we go along, make a platform that works
:09:55. > :09:58.for both sides of the market. We have got to get things like pricing
:09:59. > :10:03.and quality and the amount of job flow right, because we are trying to
:10:04. > :10:06.look after all of these people, these freelancers and small
:10:07. > :10:10.businesses, and help them build their careers, and this is something
:10:11. > :10:14.we have to work on. How did make sure you get the income levels to
:10:15. > :10:17.the level they need to be to support everybody? That's one of the
:10:18. > :10:19.challenges but that's why we are in this game and that's what technology
:10:20. > :10:29.has to Do. That's it for this edition of
:10:30. > :10:52.Asia Business Report. Sport Today is coming up next.
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