18/07/2017 World Business Report

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Now it's time for World Business Report.


Netflix wows markets as it surges past 100 million subscribers,


potentially sending shares to a record high.


And would giving away one thousand euros a month to a person free them


We discover how one bold start-up is finding the answer


to the question of a Universal Basic Income.


In a minute, we'll have an update on Rio Tinto's operations.


The video streaming giant surprised investors overnight


The company added 5.2 million subscribers in the past three


months, boosting its global customer base to 104 million.


It's a company whose growth reflects the changing culture of TV viewing


Since its transformation from a DVD rental service to video streaming


ten years ago, the firm's share price has rocketed from just over $3


This year it will spend $6bn on content.


That's 25% more than its rival Amazon is thought to be spending.


It's all in an effort to lure viewers away


Netflix has been aggressively expanding abroad, and says it is now


But with one notable exception, China.


In April, the firm agreed a deal to licence its content to one


of China's biggest streaming sites which is controlled by Baidu.


Our technology correspondent, Dave Lee, has more from Silicone


Just about all of Netflix's money comes from its subscribers. It is no


wonder when the company updates people on how it is performing,


people look at the user growth column to see how it is going on. In


the last quarter, they added 5.2 million new subscribers, a lot more


than analysts ever expected. Most of that has come from overseas were


Netflix has been investing in non- English programming and huge


marketing to spread the word about what they do. They have done well in


the US where they added 1 million subscribers in the last three


months, almost double what was expected of the company. Netflix now


has more than 100 million subscribers around the world, making


it the leader of the pack in the video streaming market. That can be


attributed to original shows like house of cards and oranges new


black, attracting new subscribers. They need to have more shows to


continue that, and they will spend $6 billion this year to do just


that. Joining me is my guest. Thank you


for coming in in. Netflix has been so successful. More than 5 million


subscribers in the last three months, beating expectations. How


are they doing it? Investing in new content and building a great


service. They had 30 million just a few years ago, now they have more


than 100 million. It is all about investing. We looked at some of the


figures and sought revenue for the quarter was almost $3 billion. 2.8.


They are investing a lot more than they are making. They are investing


a lot into acquiring content. They are not making much on the bottom


line. They are spending money on cash to get content and are actually


losing cash every single quarter. They have the expectation they can


double their subscriber base to 2 million. -- 200 million. What will


it mean? 50- 30% profit margin is all the way down to the bottom. If


you double that base, it is roughly the same. That will drop to the


bottom line. That is the theory. We mentioned China and Baidu. It is a


market Netflix wants to get into. That is scheduled for April. If it


is successful, what could that mean? There are 7 million people in China


alone. They have 20 million subscribers. It is a big market.


Netflix is going in through the backdoor. Netflix has not released


how much of a cart they would get by licensing to Baidu they would get.


-- cut. They also have Hollywood quite concerned. They have become


frenemies. On the one hand they are finding these things, and on the


other hand they are competing. They released a movie with Brad Pitt,


both in the movie theatre and at home. It's got banned from Cannes


this year because they are making films no one wants because they are


not actually a movie. They don't go to theatres, they go straight to


Netflix. Cannes wanted to limit that has a contestant. OK. Thank you very


much for your time. It's one of the richest


countries on Earth, But Germany has some systemic


problems, including an ageing population, and a lack


of entrepreneurship. Now, one radical start-up is setting


out to change all that, by handing out a basic income


of 1000 euros a month to dozens of total strangers, with the hope


that it will liberate them Joe Miller reports from Karlsbad


in south-west Germany. When this boy was born, neither of


his parents were able to work. TRANSLATION: I was studying and my


boyfriend came from Mali so neither of us could work. When our child


arrived, we had such big money problems We were wondering what we


could do. This was a possibility, the only one. Three months later, he


became the sole breadwinner, thanks to a radical experiment. The child


is one of almost 100 randomly selected people across Germany


receiving a basic income of 1000 euros a month for a year. Thousands


are queueing up to be the next recipients. Every few weeks, one


gets chosen by raffle, sometimes on prime time German TV. The initiative


is the brainchild of just one young entrepreneur. Ten years ago I


started my own on line business. After a few years of hard work, it


started to work on its own and has changed my life dramatically. I


wanted to find out if it could help other people. I started the crowd


fund money over the Internet to raise money to give it to other


people as a basic income for one year and see how it affects their


lives. The idea of giving everyone a basic income is gaining in


popularity around the globe, even winning the endorsement of


Facebook's Mark Zuckerberg. With election is looming, a newlyformed


political party is arguing prosperous Germany should introduce


the policy as well. 25% of workers are working in this sector. Basic


income would help them a lot, along with society. There is a lot of


stigma around poor people which could be resolved. We would foster


solidarity in society. Valerie has managed to find employment as an


interior designer. His dad has learnt German and works locally as


well. By the time he grows up, the experiment of his childhood might


just become policy. BBC News. Tesla has added two independent


directors to its board, including the boss of 21st


Century Fox, James Murdoch. The appointments increase the board


size at the electric car and storage The move comes amid criticism


by some shareholders of a lack Some investors believe that too


many of the company's board members have personal or professional


ties to boss Elon Musk. BNP Paribas is the latest in a long


line of banks to be hit The French bank has just been handed


a whopping $246 million dollar fine It's the latest punishment


for traders who allegedly shared information about currency bids


without adequate oversight The scandal has led to billions


of dollars in fines on both sides of the Atlantic, having already hit


the likes of Barclays, RBS, Deutsche Bank,


UBS and JP Morgan Chase Before we go, a quick look at what


the markets have been up to. You can see the figures in the Asian


markets. We have the FTSE. The Nikkei has opened after a public


holiday yesterday. Lots of markets reacting to China's figures


yesterday. You can get in touch with me on Twitter.