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tv   Business Briefing  BBC News  November 1, 2019 5:30am-5:46am GMT

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this is the business briefing. i'm victoria fritz. kicking and streaming: the fight comes to netflix as apple tv+ launches in 100 countries, with rivals from disney and hbo not far behind. plus, non brexit day! another deadline missed, another round of costly uncertainty for thousands of businesses. and on the markets, asian shares bouncing back after a survey suggested that china's factories are finally seeing business improve after months of declines.
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we start with the tv streaming war, because the battle for your eyes and ears — and your cash — is about to get a lot more fierce in the coming weeks. today, apple launches its tv+ service in 100 countries around the world. apple hopes to take on market leader netflix and rivals hulu and amazon with its aggressive pricing of $4.99 a month. netflix charges at least $9 for its basic service. apple will hope to sign up many of the 900 million people around the world that have an iphone. anyone that buys a new apple device will get one year of apple tv+ free. but what will there be to watch? the morning show, a tv news drama starring jennifer aniston and reece witherspoon that tackles the me too era,
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is one of eight new series commissioned by apple for the launch. but it's a modest line—up when you consider disney is about to launch its own streaming service with a vast library of classic films, including the star wars and marvel series. and it's a very different proposition from apple's previous foray into tv, as cody godwin in san francisco explains. apple tv+ is different from apple tv, which is a physical box that can log into your tv and basically turn it into a smart tv with apps that can it into a smart tv with apps that ca n allow it into a smart tv with apps that can allow you to play content from different places on the web, including netflix, disney and youtube. now, apple's new streaming service more like or amazon prime, and it is one of many new streaming services coming in the next few months. disney is launching disney
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plus in just months. disney is launching disney plus injust a months. disney is launching disney plus in just a fortnight, and months. disney is launching disney plus injust a fortnight, and hbo is launching hbo max in may of 2020, so will this have an impact on netflix, amazon prime or hulu? this analyst told me she is not expecting apple tv+ to make an impact on the existing services but with disney plus launching so soon, if there is a tip, it will be hard to know which is driving it or if it is a combination of the two. apple tv+ will allow up to six family members to use one accountant plans to release new content every month. dexter thillien is senior analyst at fitch solutions. hejoins me now. dexter, you look at this market day in, day out. would you agree with that assessment there, but it will not make an impact on the existing monthly services out there? yes, i think so, it is part of a long—term strategy we think so as a result of services are becoming a big part of the revenue stream, about 20%, i think
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it isa revenue stream, about 20%, i think it is a $50 billion business on a yearly basis of that is what they are moving into and you mentioned the iphone subscribers, they want to get even more subscribers it is apple tv+ but apple music, apple pay, applecare and potentially even the iphone and the ipad so it is far from an overall strategy to get a sort of a recurring monthly revenue from their users. i understand that, trying to make more money with the people they already have and get more people into the apple ecosystem but is this really the best way of doing it because it will cost them a huge amount of money. they can afford it, they are one of the most profitable, if not the most profitable, if not the most profitable, the company in the world. what they want to spend is up to them. i think streaming is becoming very important in general so becoming very important in general so obviously, disney is also launching and hbo and comcast as well and the us so you have a big competition alongside netflix and is on the people are really going towards that. different business models, netflix is more of a pure
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player, apple can leverage other things they were can see which business model works the best but apple definitely has a need if it wa nts to apple definitely has a need if it wants to make an impact on the market. the people you have mentioned are all big content providers. they are heavy hitters. that is why people stream, they go for the content. can apple really compete on that basis? it has the money so compete on that basis? it has the money so it can. i think what would be very happy about the battle for streaming is content producing and providing because they can basically go to the highest bidder, netflix, hbo or apple, who will pay more for your content? so they are happy. apple can afford it. itjust depends on whether they want to. so how much is the pricing around this? on whether they want to. so how much is the pricing around thi57m on whether they want to. so how much is the pricing around this? it is important and is the pricing around this? it is importantandi is the pricing around this? it is important and i think the pricing with apple is cheaper than the other but i can assure you they will realise that the content catalogue is not as strong or as wide as the rivals, netflix or disney, so that know that so they want to make sure
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that people still get the service, try the service and eventually stick with the service. but i would expect more content is coming, potentially higher prices as well as result with netflix. thank you, dexter, we will see how it all fares. let's talk about brexit now, because of course, britain was supposed to be waking up to a future outside the european union this morning. but with yet another extension to the deadline, businesses are once again having to readjust their preparations and contingency planning for leaving the eu. our business editor simon jack looks at how companies are coping with the continued uncertainty. the isle of portland in dorset. for centuries, home of the famous portland stone. underground, there is deep frustration that, having heeded government calls to prepare for brexit, another date has gone trundling by. politics is making business at the rock face very difficult. through the brexit process, we had to guess which parts we think were going to go wrong. michael poultney stockpiled months' worth of machine parts from italy
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and sweden — twice. we had to stockpile in march. we felt like they couldn't possibly go for a no—deal in october again but as it got closer to the date, we got frightened, i got really concerned. we then had to stockpile again, and each time it was costing us £150,000. sales have fallen 20% this year as brexit deadlines weighed heavily on his customers' confidence. in ludlow, workers at this luxury bike maker can barely move for the stock they've piled up ahead of the deadline. we've gotjust over double at the moment, but it's not all in here yet. what, there's more to come? yeah, there is more to come over the next few days. it's in the uk. it's notjust the cash they've spent on stock, it's the time and effort spent preparing for the unknown. we're not international economists, we're experts on bicycles, trying to keep listening to the news and work out what's going on and what it means for us. to have been doing that for well over three years now, it's just exhausting, yeah. it's hard to think of a time in living memory when business has
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been so buffeted by politics. they've been told to stockpile, to prepare, to brace themselves for a deadline at the end of march, then a deadline at the end of october, there's a new deadline in january next year. and now into the mix, we throw a general election, where businesses wearily pray that they will get some kind of clarity after 3.5 years of running their businesses on ever—shifting political sands. we won'tjust be picking out christmas presents this december, but will a new government deliver the certainty everyone wants? i don't think the election is going to provide the clarity we're looking for. i think, in this situation, it's going to be ongoing for years and years. it's about time that we were consulted — the british people were consulted — on what needs to happen. i think it's probably a good thing if it does give us some form of closure on the situation. however, personally, i'm probably thinking a second referendum might have been a better choice? in ludlow and in dorset, the brexit period has seemed an eternity.
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both businesses are grateful we are not heading over a cliff edge tomorrow but both are frustrated that, once again, the brexit earth has failed to move as promised. simon jack, bbc news. let's go to asia now, and china's three state telecoms firms are launching ultra—fast 5th generation, or 56, mobile phone services from today. it's seen as a key step towards china's ambition to become a technology superpower. shara njit leyl is following the story. she is a warren superpower. —— she is our own. this seems like huge news, sharanjit. it is indeed. as you say, starting today, china amongst the very first countries alongside south korea, the us, the uk, making 56 available to consumers and of course it is doing this as
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you said through three of its mobile phone operators, china mobile, china unicom and china telecom, or part of china's ambitions to become a technology leader. and of course it comes at a time when beijing and washington remain embroiled in the power struggle over trade and technology. there were no five ——we know that 56 is the fifth generation of internet connectivity because it provides much faster upload and download speeds, much wider coverage, more stable connections, and the chinese carriers had initially scheduled the launch for next year but they have rolled it out way ahead of schedule. the superfast services now to consumers in 50 chinese cities, including beijing and shanghai, with prices for monthly plan starting from a fairly reasonable 18 us dollars or so, that is according to the state media. more than 130,005 g base stations will be activated by the end of the year to support the network, making it the world's
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largest five g deployment —— 130,000 five g base stations. thank you, sharanjit. now let's brief you on some other business stories. whirlpool used non—disclosure agreements "to silence customers" over tumble dryers that caught fire, according to a report by the uk parliament. it accuses the electrical manufacturer of deflecting customer concerns and being too slow to fix the danger after its dryers were blamed for a spate of fires. whirlpool says its campaign to fix or replace machines was five times more successful than usual product recalls. shares of virgin galactic have been crashing back to earth after their stock market debut this week. billionaire richard branson‘s space tourism company lost 13% of its value on thursday. it's lost 29% since its peak on monday. and now, what's trending in the business news this morning? stocks have been mixed but actually, some quite good data coming out of
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china in terms of its bees, more upbeat data than we have had in the last 2.5 years from china. not so goodin last 2.5 years from china. not so good injapan, a fall in factory output to a three—year low. the typhoon of course and also sales tax. 20 more coming up later. see you soon. “— tax. 20 more coming up later. see you soon. —— plenty more. the wreckage of a british submarine that vanished during the second world war has been found in the sea off malta. hms urge disappeared after setting sail in april 1942. there were more than a0 people on board, and its fate had remained unknown. the bbc‘s tim allman has the story. deep beneath the waves of the mediterranean, a mystery nearly 80 years old is finally solved.
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schools of fish move through the rusting, corroded wreck of what's believed to be hms urge. still on deck, its giant gun, silent for so many years, standing guard over a metal grave. the wreck is in absolutely fantastic condition. it's sitting upright on the seabed, very proud, in the direction that it was ordered to take on its way to alexandria. archive: a british submarine makes her way in to her depot ship — coming home to mother, as they call it. malta was a strategically important base for british submarines targeting german and italian shipping in the mediterranean. hms urge was part of the 10th submarine flotilla, known as the fighting 10th, a vital part of the allied war effort. on 27 april 1942, it left malta, ordered to set sail for the egyptian
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port of alexandria. but just after leaving valletta, it is believed to have struck a mine. the submarine and its crew went down. all lives were lost. a ceremony is expected to take place next year, where this will be declared an official war grave. the heroes of hms urge honoured at last. tim allman, bbc news. for that story and more, breakfast is coming up at 6 o'clock with naga munchetty and charlie stayt. they'll have the day's news, business and sport. this is the briefing from bbc news. the latest headlines: president trump has intervened in britain's forthcoming general election in a radio interview with the right—wing politician and brexit supporter nigel farage. he criticised the opposition labour party leader, jeremy corbyn, and praised the prime minister, borisjohnson.
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in pakistan, the first funerals of some of the 7a people killed when fire ripped through a crowded train have been taking place. the fire is thought to have started when a cooking gas cylinder exploded. now it's time to look at the stories that are making the headlines in the media across the world. the daily telegraph, alongside many other outlets, are focusing on donald trump's suprise call in to brexit party leader nigel‘s farage's radio show. in the interview, he urged farage to make an elecorate pact with borisjohnson in the upcoming election, whilst also criticising the prime minister's brexit deal and uk opposition leaderjeremy corbyn. the president is not alone in taking aim at the labour leader. the financial times reports a number of business leaders have spoken out against mr corbyn‘s criticism of uk business, including sports direct


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