18/07/2017 World Business Report

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.