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Speaker 1: This is what the Flux.

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Speaker 2: I'm Bretton Justin and it's Wednesday, the twenty ninth of January, Joziewait.

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Speaker 2: We know that TikTok has been given seventy five days

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Speaker 2: to find a new owner of its US app or

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Speaker 2: else it goes into the scrap heat. Now there are

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Speaker 2: rumors that Oracle, the Cloud of Software Business, could take

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Speaker 2: control of TikTok's operations in the US, and the same has.

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Speaker 1: Been said for Microsoft now as well.

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Speaker 2: Of course, all is rumor and innuendo right now, but

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Speaker 2: the race is definitely heating up.

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Speaker 3: Flux Am. We are in the last couple of days

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Speaker 3: of January. Now it is race past. But if you

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Speaker 3: still want to get on top of your finances to

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Speaker 3: start the year on a high and set yourself up

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Speaker 3: for the most financially responsible year of your life, there

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Speaker 3: is one place to go. It's in the Flux Academy.

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Speaker 3: This month, in partnership with UP, we're giving away a

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Speaker 3: heap of cash prizes for the top of the leaderboard.

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Speaker 3: So make sure to check out New Year, New Financially.

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Speaker 2: Savvy Me Three revolutionary stories today, Jazzy boy, Let's do

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Speaker 2: it for our first the AFL is renegotiating its major

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Speaker 2: contract with betting agencies and book makers as it tries

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Speaker 2: to take a bigger slice of the betting pie.

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Speaker 3: So please do money, tell me will be man?

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Speaker 1: Does you boy?

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Speaker 2: The AFL has been the most popular sport in Australia

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Speaker 2: since way back in the early nineteen hundreds.

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Speaker 3: Yeah, today AFL is the most popular game in town,

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Speaker 3: largely due to its number of fans, it's crowd sizes,

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Speaker 3: and of course the four and a half billion dollar

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Speaker 3: broadcast deal.

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Speaker 1: It's struck, but does it wait?

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Speaker 2: While the broadcast rights of the AFL's biggest money spinner,

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Speaker 2: it has developed another lucrative revenue stream over the past decade.

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Speaker 3: Yeah, the afel's partnered with a range of book makers

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Speaker 3: like tab Corps, sports Bet, Ladbrokes and Nez.

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Speaker 2: In fact, it's believed that the AFL makes up to

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Speaker 2: forty million dollars in revenue from bookies each year.

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Speaker 3: But now, be man, the AFL isn't just content sitting

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Speaker 3: in the back pocket. It wants a role in the midfield.

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Speaker 1: Yep.

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Speaker 2: They're looking for a bigger slice of the revenue that

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Speaker 2: bookies make from AFL game and.

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Speaker 3: This will make it closer to the deal that the

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Speaker 3: NRL struck with bookies through what is called product fees.

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Speaker 2: Ooh, so what is the key learning here? Product fees,

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Speaker 2: also known as integrity fees, are essentially a fancy term

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Speaker 2: for the way sporting leagues generate revenue from bookmaker now.

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Speaker 2: These product fees are based on a percentage of a

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Speaker 2: bookmaker's turnover or total revenue.

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Speaker 3: Whichever of the two figures is higher.

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Speaker 2: For example, the AFL is currently believed to earn zero

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Speaker 2: point nine percent of bookie turnover from betting on AFL game.

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Speaker 3: But they want more. They want to increase this to

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Speaker 3: one and a half percent of turnover from AFL game.

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Speaker 1: And this little arrangement is common across major sports.

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Speaker 3: Yeah, We've seen it with the NRL, the A League

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Speaker 3: and the Australian Open as well.

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Speaker 1: So Jesse boy.

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Speaker 2: If the AFL does get its way, this new deal

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Speaker 2: could see its revenue from bookies jump from forty mil

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Speaker 2: to over fifty mil a year.

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Speaker 3: That is a lot of meat pies and new goalposts

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Speaker 3: that we've under for our second story, Deep Seek, a

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Speaker 3: new Chinese AI model has been released with rave reviews

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Speaker 3: and as a result, in video's stock price drop.

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Speaker 1: More than seventeen percent.

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Speaker 3: Interesting. I want to know how these two alink b Man,

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Speaker 3: so tell me more So.

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Speaker 2: Deep Seak was founded in just twenty twenty three, and

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Speaker 2: they released their first large language model later that year.

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Speaker 3: But last month be Man deep Seek caught the eye

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Speaker 3: of the whole AI industry when it released a UAI

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Speaker 3: model and claimed it was on par with Open AI

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Speaker 3: and more cost effective. In fact, b Man Deepseek claims

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Speaker 3: it spent just five point six million US dollars on

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Speaker 3: computing power.

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Speaker 2: For its AI model, compared to the billions of dollars

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Speaker 2: US companies spent on their AI technology. And earlier this week,

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Speaker 2: deep Seek's AI app became the number one downloaded app

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Speaker 2: in the US App Store. Next minute in video share price,

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Speaker 2: face plants seventeen percent, or more than five hundred and

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Speaker 2: eighty nine billion US dollars in market value, and b Man.

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Speaker 3: The whole of Wall Street freaked out because deep Seek

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Speaker 3: produced such good results at a fraction of the cost.

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Speaker 2: And this puts into question the amounts of resources and

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Speaker 2: computer chips needed for all the AI companies in the US.

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Speaker 3: Very true, So what is the key learning here?

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Speaker 2: When a disruptive technology emerges, it forces both suppliers and

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Speaker 2: competitors to reassess business models. For example, b Man and

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Speaker 2: a loss of expected in video the AI chip designer

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Speaker 2: to increase the AI shipments by between eight to ten

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Speaker 2: percent in twenty twenty five. The expectation is that they'd

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Speaker 2: sell thousands more AI chips to Meta, Amazon, Open Ai

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Speaker 2: and co.

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Speaker 1: As they grow.

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Speaker 3: But all of a.

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Speaker 2: Sudden, Deep Seek has been able to do more with

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Speaker 2: fewer chips, and that means demand for Nvidia's AI chips

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Speaker 2: could shrink significantly. Then, on the other hand, there's AI

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Speaker 2: companies like open Ai who have invested billions and billions

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Speaker 2: into developing advanced AI models, and all of a sudden,

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Speaker 2: Deep Seak manages to create a similar model for just

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Speaker 2: over five million US dollars.

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Speaker 3: Wow, and be man for investors. Kind of calls into

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Speaker 3: question the need for such massive investments in AI.

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Speaker 2: So it's no surprise the share price of Google's parent

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Speaker 2: company Alphabet and Meta dropped four percent and two percent respectively.

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Speaker 3: What have they been spending on?

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Speaker 2: And even Donald Trump has got involved with do Boy,

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Speaker 2: calling this a wake up call for US technology companies.

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Speaker 3: So be man. This challenger from China could shake up

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Speaker 3: the whole AI industry if they're telling the truth.

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Speaker 2: For our third and final story, AARN Media, the owner

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Speaker 2: of Kiss and Gold radio stations here in Australia, may

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Speaker 2: want to buy nine entertainments talkback radio stations.

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Speaker 1: But there's a major obstacle ahead, a.

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Speaker 3: Bigger obstacle than the decline line in the radio market,

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Speaker 3: I imagine.

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Speaker 1: So tell me more, okay.

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Speaker 3: So.

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Speaker 2: ARN Media is an Australian media company founded in nineteen

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Speaker 2: eighty eight under the name Here, There and Everywhere.

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Speaker 3: They run more than fifty eight radio stations in thirty

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Speaker 3: three different markets, including Kiss and Gold, Karter and iHeartRadio

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Speaker 3: in Australia.

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Speaker 2: But does it Boy twenty twenty four was not kind

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Speaker 2: for Arn. No, it's all a share price four by

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Speaker 2: more than thirty percent over the past twelve months. It's

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Speaker 2: also been trying to acquire Southern Cross Media recently, the

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Speaker 2: owner of Triple M and HITFM, but has not been successful.

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Speaker 3: And now ARN Media's chairman has said he'd like to

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Speaker 3: buy nine entertainments talk back radio stations.

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Speaker 2: Now to be Sydney's two GB, Melbourne three a W,

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Speaker 2: Brisbane's four BC, alongside others.

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Speaker 3: Sounds like a great idea. All right, not so fast, though, Neil.

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Speaker 2: There's a major roadblock, and it's got a name, the

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Speaker 2: Broadcasting Services Act nineteen ninety two.

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Speaker 3: This law says media companies can't own more than two

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Speaker 3: commercial broadcasting licenses in one market, which means RN can't

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Speaker 3: legally add nine stations to its radio list. But Aaron's

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Speaker 3: chairman reckons these laws are outdated, particularly because radio stations

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Speaker 3: are now competing against global music and streaming platforms.

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Speaker 1: So what is the key learning here?

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Speaker 3: Radio ownership laws were created for a world that no

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Speaker 3: longer exists.

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Speaker 2: Yes, three decades ago, radio was the bee's knees. It

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Speaker 2: was one of the primary ways that Australians consume news

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Speaker 2: and formed opinions.

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Speaker 3: And these ownership laws meant that no single company could

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Speaker 3: have too much influence.

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Speaker 2: Fast forward to today and audience has consumed content through podcasts,

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Speaker 2: on demand, news apps and of course social media. In fact,

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Speaker 2: then only twenty eight percent of Aussies aged eighteen to

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Speaker 2: twenty four listen to the radio. Compare that to eighty

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Speaker 2: four percent of Aussies listening to the radio who are

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Speaker 2: over the age of seventy five. So ultimately, these companies

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Speaker 2: will need to consolidate or innovate in order to survive FLUXAM.

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Speaker 3: We are giving away one hundred and fifty bucks to

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Speaker 3: the first prize, one hundred to second, and fifty bucks

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Speaker 3: to the third place in the Flux Academy this month.

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Speaker 3: Make sure to download the Flux app and check out

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Speaker 3: the Academy this month.

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Speaker 2: Thanks for listening and we'll see you on Friday.