WEBVTT - Qantas steps up in battle with Virgin Australia | Nvidia outperforms everyone | Adobe's billion-dollar marketing play

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<v Speaker 1>This is what the flax. I'm Brett and I've justin.

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<v Speaker 1>It's Friday, the twenty first of November, does it? Wait?

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<v Speaker 2>Webjet could be called Hello Webjetty pretty soon. Hello World

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<v Speaker 2>is the old school travel agent with old school shops

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<v Speaker 2>and making the bookings for you. And it's just made

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<v Speaker 2>a three hundred and fifty three million dollar takeover offer

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<v Speaker 2>for Webjets. Next minute, webjets share price spike seventeen percent,

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<v Speaker 2>So watch this airspace.

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<v Speaker 1>It'd be very interesting there be man by time. We

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<v Speaker 1>often hear in Australia that property is the great Australian dream,

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<v Speaker 1>But in terms of financial returns, is that actually stack

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<v Speaker 1>up well? We have done a deep dive comparing the

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<v Speaker 1>returns to the property market, ver's the returns in the

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<v Speaker 1>share market over the last ten years. So if you

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<v Speaker 1>want to learn which one comes out on top, make

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<v Speaker 1>sure to download the Flux app and check out our

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<v Speaker 1>latest article.

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<v Speaker 2>Three riveting Stories Today Juzzy Boy, let's do it for

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<v Speaker 2>our first Quantas is taking the loyalty battle to Virgin

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<v Speaker 2>Australia head on with a new membership program for Jetstar.

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<v Speaker 1>Battle of the Aussi air Lines is on BMN so

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<v Speaker 1>what is the story here?

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<v Speaker 2>Right? So we know Quantus is Australia's biggest domestic and

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<v Speaker 2>international airline, founded in nineteen twenty.

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<v Speaker 1>And it also owns Jetstar, which is the budget friendly

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<v Speaker 1>airline for people who can't justify the full service prices and.

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<v Speaker 2>Who don't need a free biki or tea on their flight.

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<v Speaker 1>Now, be man, get this together. Quantus and Jetstar hold

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<v Speaker 1>over sixty percent market share of the domestic aviation market and.

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<v Speaker 2>Jesus, wait, we know that Virgin holds about thirty percent

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<v Speaker 2>market share and is pretty much Jetstar's only rival.

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<v Speaker 1>So now, be man. Quantus wants to lure these Virgin

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<v Speaker 1>Australia customers back to Jetstar.

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<v Speaker 2>And they're dangling their shiny rewards program as bait.

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<v Speaker 1>As part of this new annual membership, Jetstar customers will

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<v Speaker 1>be able to earn frequent Flyer status credits and points

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<v Speaker 1>equivalent to Quantus flights. Now.

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<v Speaker 2>Quantus claims that the goal of expanding the program is

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<v Speaker 2>to offer more passengers the chance to gain more points

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<v Speaker 2>and credit.

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<v Speaker 1>But it seems like the real reason is to squeeze

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<v Speaker 1>Virgin's business on both ends of the market with their

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<v Speaker 1>duel brand strategy. Fascinating, So what's the key learning. The

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<v Speaker 1>duel brand strategy is when a company uses two dis

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<v Speaker 1>distinct brands to target different customer types in the same market.

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<v Speaker 2>This allows them to experiment with different service styles and

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<v Speaker 2>compete at both premium and budget levels.

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<v Speaker 1>Man Quantisant jets are are a classic example of the

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<v Speaker 1>dual brand strategy, and.

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<v Speaker 2>Juzboy it's not that uncommon.

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<v Speaker 1>Nope, We've seen it with Singapore Airlines, which owns budget

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<v Speaker 1>airlines Scoot as well.

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<v Speaker 2>And passengers can earn Chris Flyer loyalty points across both

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<v Speaker 2>of those airlines.

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<v Speaker 1>We've also seen it with Toyota and their premium brand

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<v Speaker 1>Lexus as well.

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<v Speaker 2>And jesse Boy. In twenty twenty two, the last time

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<v Speaker 2>jets are reported on passenger numbers, it flew nineteen million

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<v Speaker 2>passengers in a year, and that.

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<v Speaker 1>Means nineteen million more people who have the option to

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<v Speaker 1>snag frequent fly points when they travel.

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<v Speaker 2>So by capturing both the high and low ends of

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<v Speaker 2>the market with its loyalty program, it leaves single brand

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<v Speaker 2>airlines like Old Virgin battling to find their niche.

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<v Speaker 1>For our second story, Nvidia is keeping the AI boom

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<v Speaker 1>alive as it outperformed the very lofty expectations of investors,

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<v Speaker 1>and the whole market rose on the news.

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<v Speaker 2>The AI crash and burn that skeptics were hoping for

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<v Speaker 2>has not arrived.

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<v Speaker 1>Tell me more, Okay, so in Video is the US

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<v Speaker 1>chip maker whose GPU chips pretty much power every single

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<v Speaker 1>major AI model in the whole wide world.

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<v Speaker 2>Fun fact, in Video was worth just four hundred billion

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<v Speaker 2>US dollars three years ago.

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<v Speaker 1>And more recently, it became the first company to hit

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<v Speaker 1>a five trillion US dollar valuation, now Josey Boy.

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<v Speaker 2>Over the past week, the broader share market has become

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<v Speaker 2>quite jittery.

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<v Speaker 1>Yeah, there was a fear of a bubble in AI stocks,

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<v Speaker 1>especially in Video, which they were concerned might not hit

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<v Speaker 1>the lofty expectations of investors.

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<v Speaker 2>But fear not, Juzzy Boy in Video has pulled through

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<v Speaker 2>once again with this quarter's numbers exceeding investor expectations.

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<v Speaker 1>We're talking revenue of fifty seven billion US dollars for

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<v Speaker 1>the quarter, up.

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<v Speaker 2>Sixty two percent year on year, better than expectations.

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<v Speaker 1>And for next quarter they're forecasting sixty five billion US dollars.

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<v Speaker 2>For Josei Boy, who is paying for all these chippys.

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<v Speaker 1>So I'm glad you asked, because sixty one percent of

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<v Speaker 1>in Video's revenue comes from four customers name and shame.

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<v Speaker 1>Well in video calls them customer A, customer B, customer C,

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<v Speaker 1>and D, with the largest customer accounting for twenty two

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<v Speaker 1>percent scent of in Videa's entire revenue.

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<v Speaker 2>We don't know exactly who is who, but everyone assumes

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<v Speaker 2>this is Microsoft, Amazon, Meta, and open Ai.

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<v Speaker 1>So investors breeded a sigh of relief after this news, and.

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<v Speaker 2>It pretty much pulled up the whole market. Given in

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<v Speaker 2>video's impact these days.

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<v Speaker 1>So true, So what is the key learning here?

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<v Speaker 2>When one giant becomes so dominant, its results can move

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<v Speaker 2>entire indices.

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<v Speaker 1>And that means the upside is huge, But so is

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<v Speaker 1>the potential downside.

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<v Speaker 2>And the bigger in video gets, the more markets rely

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<v Speaker 2>on it to keep delivering ridiculous growth.

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<v Speaker 1>If fact, beman in videos share gains this year have

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<v Speaker 1>accounted for eighteen percent of the entire sm P five

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<v Speaker 1>hundred total turn for this year.

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<v Speaker 2>The problem is that if in video ever misses or

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<v Speaker 2>hits an unexpected speed bump, it will drag the whole

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<v Speaker 2>market down.

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<v Speaker 1>Think Microsoft, Think Amazon, Alphabet Meta. The very customers buying

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<v Speaker 1>all of these chips, in fact, be man Even in Australia,

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<v Speaker 1>the tech sector gets confidence from in Video.

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<v Speaker 2>In fact, it was up five point one percent yesterday

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<v Speaker 2>off the back of the Nvidia news. So for now

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<v Speaker 2>the results have settled the concerns of investors.

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<v Speaker 1>But you can only imagine this concern will come up

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<v Speaker 1>again and again each quarter for in Video given their

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<v Speaker 1>frothy frothy evaluation.

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<v Speaker 2>For our third and final story, Adobe has dropped almost

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<v Speaker 2>two billion US dollars to buy sem Rush so it

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<v Speaker 2>can beef up its marketing and AI tools.

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<v Speaker 1>Everyone's favorite PDF overlord is a backshopping again, so tell

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<v Speaker 1>me more.

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<v Speaker 2>So. Adobe is the creative software giant behind Photoshop and

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<v Speaker 2>Illustrator and Premiere Pro and of course Acrobat.

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<v Speaker 1>Basically the entire design stack used by designers and marketers

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<v Speaker 1>and video editors.

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<v Speaker 2>And what about old sem Rush, Well, they're.

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<v Speaker 1>A marketing platform and they basically help businesses grow their

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<v Speaker 1>online presence through a lot of data.

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<v Speaker 2>Yep, they help marketers improve their SEO content marketing and

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<v Speaker 2>also just spy on competitor's activity.

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<v Speaker 1>And now Adobe's announced it will acquire sem Rush for

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<v Speaker 1>one point nine billion US dollars.

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<v Speaker 2>That is large. A seventy seven point five percent premium

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<v Speaker 2>on their previous share price.

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<v Speaker 1>Sounds like a pretty steef price to pay our record.

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<v Speaker 2>Yep, that's because sem Rush isn't a big revenue machine yet.

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<v Speaker 1>But Adobe reconds the strategic value of having a marketing

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<v Speaker 1>platform could be huge for their existing customers.

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<v Speaker 2>So what is the key learning here?

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<v Speaker 1>The easiest revenue boost isn't finding new customers, it's given

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<v Speaker 1>your current ones more reason to stick around.

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<v Speaker 2>Adobe knows its core audience inside out.

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<v Speaker 1>We'd been talking designers and marketers, creatives as well as

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<v Speaker 1>agencies and Josie Boy.

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<v Speaker 2>These days, those customers don't just create content.

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<v Speaker 1>Nope, they manage social channels, they write ad campaigns, and

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<v Speaker 1>they obsess over seo.

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<v Speaker 2>So rather than finding new customers, Adobe is widening its

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<v Speaker 2>offerings so it can sell more solutions to the same

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<v Speaker 2>loyal base.

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<v Speaker 1>And Spotify did the same thing. It built a huge

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<v Speaker 1>audience around music streaming.

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<v Speaker 2>Then it realized those same listeners also wanted podcasts and

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<v Speaker 2>audiobooksp So.

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<v Speaker 1>Adobe is now trying to create a product ecosystem so

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<v Speaker 1>that it's customers never want to leave flux am did

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<v Speaker 1>you know in the past twenty years, Australian property has

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<v Speaker 1>delivered an average of seven point seven percent annual growth

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<v Speaker 1>and the share market well hasn't done too badly either.

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<v Speaker 1>So if you want to know which investment might have

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<v Speaker 1>been better, they shore you download the Flux app and

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<v Speaker 1>check out our latest article Shares First Property.

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<v Speaker 2>Thanks for listening and we'll see you on Monday