:00:00. > :00:17.Now it's time for World Business Report.
:00:18. > :00:21.Netflix wows markets as it surges past 100 million subscribers,
:00:22. > :00:26.potentially sending shares to a record high.
:00:27. > :00:30.And would giving away one thousand euros a month to a person free them
:00:31. > :00:34.We discover how one bold start-up is finding the answer
:00:35. > :00:46.to the question of a Universal Basic Income.
:00:47. > :00:53.In a minute, we'll have an update on Rio Tinto's operations.
:00:54. > :00:58.The video streaming giant surprised investors overnight
:00:59. > :01:03.The company added 5.2 million subscribers in the past three
:01:04. > :01:05.months, boosting its global customer base to 104 million.
:01:06. > :01:09.It's a company whose growth reflects the changing culture of TV viewing
:01:10. > :01:13.Since its transformation from a DVD rental service to video streaming
:01:14. > :01:16.ten years ago, the firm's share price has rocketed from just over $3
:01:17. > :01:22.This year it will spend $6bn on content.
:01:23. > :01:25.That's 25% more than its rival Amazon is thought to be spending.
:01:26. > :01:28.It's all in an effort to lure viewers away
:01:29. > :01:32.Netflix has been aggressively expanding abroad, and says it is now
:01:33. > :01:35.But with one notable exception, China.
:01:36. > :01:38.In April, the firm agreed a deal to licence its content to one
:01:39. > :01:41.of China's biggest streaming sites which is controlled by Baidu.
:01:42. > :01:43.Our technology correspondent, Dave Lee, has more from Silicone
:01:44. > :02:14.Just about all of Netflix's money comes from its subscribers. It is no
:02:15. > :02:18.wonder when the company updates people on how it is performing,
:02:19. > :02:22.people look at the user growth column to see how it is going on. In
:02:23. > :02:27.the last quarter, they added 5.2 million new subscribers, a lot more
:02:28. > :02:32.than analysts ever expected. Most of that has come from overseas were
:02:33. > :02:37.Netflix has been investing in non- English programming and huge
:02:38. > :02:41.marketing to spread the word about what they do. They have done well in
:02:42. > :02:44.the US where they added 1 million subscribers in the last three
:02:45. > :02:49.months, almost double what was expected of the company. Netflix now
:02:50. > :02:54.has more than 100 million subscribers around the world, making
:02:55. > :02:57.it the leader of the pack in the video streaming market. That can be
:02:58. > :03:08.attributed to original shows like house of cards and oranges new
:03:09. > :03:12.black, attracting new subscribers. They need to have more shows to
:03:13. > :03:14.continue that, and they will spend $6 billion this year to do just
:03:15. > :03:25.that. Joining me is my guest. Thank you
:03:26. > :03:30.for coming in in. Netflix has been so successful. More than 5 million
:03:31. > :03:36.subscribers in the last three months, beating expectations. How
:03:37. > :03:40.are they doing it? Investing in new content and building a great
:03:41. > :03:45.service. They had 30 million just a few years ago, now they have more
:03:46. > :03:48.than 100 million. It is all about investing. We looked at some of the
:03:49. > :03:56.figures and sought revenue for the quarter was almost $3 billion. 2.8.
:03:57. > :04:01.They are investing a lot more than they are making. They are investing
:04:02. > :04:07.a lot into acquiring content. They are not making much on the bottom
:04:08. > :04:10.line. They are spending money on cash to get content and are actually
:04:11. > :04:13.losing cash every single quarter. They have the expectation they can
:04:14. > :04:21.double their subscriber base to 2 million. -- 200 million. What will
:04:22. > :04:25.it mean? 50- 30% profit margin is all the way down to the bottom. If
:04:26. > :04:32.you double that base, it is roughly the same. That will drop to the
:04:33. > :04:40.bottom line. That is the theory. We mentioned China and Baidu. It is a
:04:41. > :04:43.market Netflix wants to get into. That is scheduled for April. If it
:04:44. > :04:53.is successful, what could that mean? There are 7 million people in China
:04:54. > :04:59.alone. They have 20 million subscribers. It is a big market.
:05:00. > :05:12.Netflix is going in through the backdoor. Netflix has not released
:05:13. > :05:19.how much of a cart they would get by licensing to Baidu they would get.
:05:20. > :05:26.-- cut. They also have Hollywood quite concerned. They have become
:05:27. > :05:31.frenemies. On the one hand they are finding these things, and on the
:05:32. > :05:35.other hand they are competing. They released a movie with Brad Pitt,
:05:36. > :05:40.both in the movie theatre and at home. It's got banned from Cannes
:05:41. > :05:46.this year because they are making films no one wants because they are
:05:47. > :05:52.not actually a movie. They don't go to theatres, they go straight to
:05:53. > :05:54.Netflix. Cannes wanted to limit that has a contestant. OK. Thank you very
:05:55. > :06:00.much for your time. It's one of the richest
:06:01. > :06:03.countries on Earth, But Germany has some systemic
:06:04. > :06:06.problems, including an ageing population, and a lack
:06:07. > :06:08.of entrepreneurship. Now, one radical start-up is setting
:06:09. > :06:11.out to change all that, by handing out a basic income
:06:12. > :06:14.of 1000 euros a month to dozens of total strangers, with the hope
:06:15. > :06:17.that it will liberate them Joe Miller reports from Karlsbad
:06:18. > :06:31.in south-west Germany. When this boy was born, neither of
:06:32. > :06:34.his parents were able to work. TRANSLATION: I was studying and my
:06:35. > :06:40.boyfriend came from Mali so neither of us could work. When our child
:06:41. > :06:43.arrived, we had such big money problems We were wondering what we
:06:44. > :06:48.could do. This was a possibility, the only one. Three months later, he
:06:49. > :06:57.became the sole breadwinner, thanks to a radical experiment. The child
:06:58. > :07:01.is one of almost 100 randomly selected people across Germany
:07:02. > :07:06.receiving a basic income of 1000 euros a month for a year. Thousands
:07:07. > :07:11.are queueing up to be the next recipients. Every few weeks, one
:07:12. > :07:20.gets chosen by raffle, sometimes on prime time German TV. The initiative
:07:21. > :07:26.is the brainchild of just one young entrepreneur. Ten years ago I
:07:27. > :07:31.started my own on line business. After a few years of hard work, it
:07:32. > :07:35.started to work on its own and has changed my life dramatically. I
:07:36. > :07:39.wanted to find out if it could help other people. I started the crowd
:07:40. > :07:43.fund money over the Internet to raise money to give it to other
:07:44. > :07:46.people as a basic income for one year and see how it affects their
:07:47. > :07:50.lives. The idea of giving everyone a basic income is gaining in
:07:51. > :07:55.popularity around the globe, even winning the endorsement of
:07:56. > :07:58.Facebook's Mark Zuckerberg. With election is looming, a newlyformed
:07:59. > :08:08.political party is arguing prosperous Germany should introduce
:08:09. > :08:11.the policy as well. 25% of workers are working in this sector. Basic
:08:12. > :08:15.income would help them a lot, along with society. There is a lot of
:08:16. > :08:23.stigma around poor people which could be resolved. We would foster
:08:24. > :08:28.solidarity in society. Valerie has managed to find employment as an
:08:29. > :08:34.interior designer. His dad has learnt German and works locally as
:08:35. > :08:36.well. By the time he grows up, the experiment of his childhood might
:08:37. > :08:41.just become policy. BBC News. Tesla has added two independent
:08:42. > :08:45.directors to its board, including the boss of 21st
:08:46. > :08:47.Century Fox, James Murdoch. The appointments increase the board
:08:48. > :08:51.size at the electric car and storage The move comes amid criticism
:08:52. > :08:54.by some shareholders of a lack Some investors believe that too
:08:55. > :08:59.many of the company's board members have personal or professional
:09:00. > :09:01.ties to boss Elon Musk. BNP Paribas is the latest in a long
:09:02. > :09:05.line of banks to be hit The French bank has just been handed
:09:06. > :09:10.a whopping $246 million dollar fine It's the latest punishment
:09:11. > :09:13.for traders who allegedly shared information about currency bids
:09:14. > :09:15.without adequate oversight The scandal has led to billions
:09:16. > :09:19.of dollars in fines on both sides of the Atlantic, having already hit
:09:20. > :09:22.the likes of Barclays, RBS, Deutsche Bank,
:09:23. > :09:35.UBS and JP Morgan Chase Before we go, a quick look at what
:09:36. > :09:46.the markets have been up to. You can see the figures in the Asian
:09:47. > :09:53.markets. We have the FTSE. The Nikkei has opened after a public
:09:54. > :09:58.holiday yesterday. Lots of markets reacting to China's figures
:09:59. > :10:00.yesterday. You can get in touch with me on Twitter.