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Speaker 1: This is what the Flux.

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Speaker 2: I'm Brett and I'm Justin and it's Friday the sixth

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Speaker 2: The March.

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Speaker 3: Chasey boy Oh Zimbig may be trending, but so is

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Speaker 3: Extra Block. The number of fast food outlet's opening in

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Speaker 3: Australia hit a decade high in twenty twenty hour and

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Speaker 3: the chain's opening the most outlets that would be Zambrero

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Speaker 3: and Guzman Egomes, followed by KFC, Maki D's and Subdogs

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Speaker 3: Fox Mam.

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Speaker 2: The f one is live this weekend in Melbourne. But

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Speaker 2: Formula one isn't just about fast cars. It's a multi

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Speaker 2: billion dollar business. We share the three main sources of

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Speaker 2: Formula one team income in the Flux app today and

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Speaker 2: it is big. So if you want to learn more

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Speaker 2: about f one before the weekend, make sure to download

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Speaker 2: the Flux app and check out our latest.

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Speaker 3: Article three Speedy Stories Today July Boy, Let's do it

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Speaker 3: for our first. Arn Media, the radio company behind Kiss

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Speaker 3: and Gold FM, has seen its share price jump over

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Speaker 3: five percent after the.

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Speaker 1: Fallout of the Kyle and Jackie Osho.

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Speaker 2: Drama on the airwaves. Be man, what is going on here?

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Speaker 3: So aarn Media is an Australian media company that owns

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Speaker 3: the commercial FM radio networks Kiss and Goal.

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Speaker 2: It's one of the biggest radio plays in the country.

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Speaker 2: Earlier this week, Jackie Henderson, who's one half of the

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Speaker 2: Carl and JACKIEO Show, officially courted quits.

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Speaker 3: She said that she cannot continue to work with mister

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Speaker 3: Kyle Sandalance.

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Speaker 2: And what sparked this broadcast breakdown?

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Speaker 3: Well, Kyle said live on air that Jackio was off

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Speaker 3: with the fairies and said that her interest in astrology

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Speaker 3: made her almost unworkable. Safe to say. The comment didn't

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Speaker 3: land well. JACKIEO terminated her contract. AARN suspended Sandaland for

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Speaker 3: fourteen days.

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Speaker 2: And warned him that his multimillion dollar contract could be

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Speaker 2: terminated if the breach wasn't remedied within two weeks.

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Speaker 3: But here's the kick at Jasie Waite. AARN Jet Brice

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Speaker 3: jumped five eight percent the next.

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Speaker 2: Morning, and this is the company who shares have fallen

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Speaker 2: forty three percent over the past year.

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Speaker 3: So investors are essentially saying, maybe Kyle was the problem

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Speaker 3: and this breakup could be the reset that ARN needs.

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Speaker 2: So what is the key learning here?

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Speaker 3: Locking in a mega contract can feel like a win

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Speaker 3: until it starts eating you alive.

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Speaker 2: In aarn's case, Kyle and JACKIEO were on a monster

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Speaker 2: two hundred million dollar a year contract that ran to

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Speaker 2: twenty thirty four.

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Speaker 3: That's about twenty million bucks a year in talent costs

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Speaker 3: for just two humanoids.

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Speaker 2: Now, be man, let's put that into perspective. Aarn's full

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Speaker 2: year profit came in at just over six million dollars.

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Speaker 3: That means Kyl and Jackio's annual contract was more than

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Speaker 3: three times aarn's entire annual profit and use Wait, that's

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Speaker 3: exactly why ARN share price had been hammered over.

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Speaker 1: The past year.

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Speaker 2: Yeah, the market worried AARN had locked itself into a

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Speaker 2: mega contract the business just couldn't afford right now. But

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Speaker 2: now with Jackio's departure, the market is seeing a potential

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Speaker 2: escape route, and that means ARN could finally reset its

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Speaker 2: talent costs to match the shrinking size of commercial radio.

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Speaker 1: And that's why the share price popped.

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Speaker 2: For our second story, Audible, Amazon's audiobook giant has just

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Speaker 2: launched a cheaper subscription plan for the first time because

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Speaker 2: it faces a major threat from Spotify.

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Speaker 3: So all agree here, listening to a book is most

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Speaker 3: definitely the same as reading.

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Speaker 1: For now it's not telling void.

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Speaker 2: Okay, so we know. Audible is Amazon's audiobook platform and

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Speaker 2: is basically the reason millions of people now read while

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Speaker 2: doing the dishes or walking the doggo. It was actually

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Speaker 2: found under Duck in ninety five, but Amazon snapped it

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Speaker 2: up in two thousand and eight for around three hundred

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Speaker 2: million US dollars.

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Speaker 3: Today, Audible is the world's largest producer and distributor of audiobooks.

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Speaker 3: We're talking over eight hundred thousand titles and the business

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Speaker 3: model has been pretty simple. Yeah, they charge a monthly

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Speaker 3: fee fifty ninety nine in Australia, and this gives subscribers

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Speaker 3: one credit to keep an audiobook forever.

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Speaker 1: Even if you cancel. The audiobook is yours.

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Speaker 2: But now Audible has done a widespread release of a

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Speaker 2: new plan that allows you to listen all you want

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Speaker 2: each month and it's cheaper. Interesting Josey boys, how does

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Speaker 2: it work? Well, you don't get monthly credits to own

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Speaker 2: a title. It's effectively a streaming style model.

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Speaker 3: So if it takes you two months to finish a

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Speaker 3: twenty five hour audiobook about productivity that you'll definitely procrastinate on,

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Speaker 3: you'll be paying for month two and three and four.

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Speaker 2: Yeah, and then this is clearly aimed at one competitor,

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Speaker 2: in particular, Spotify ye.

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Speaker 3: Spotify rolled out audiobook access for its premium subscribers back

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Speaker 3: in twenty twenty three, and it's.

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Speaker 2: Been aggressively pushing into the audiobook market ever since.

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Speaker 3: So Audible is basically saying you're ont a streaming style

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Speaker 3: audiobook experience, no worries, We've got one too.

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Speaker 2: So what is the key learning here?

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Speaker 3: When a new competitor enters your turf, standing still is

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Speaker 3: not an option yet.

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Speaker 2: For the last decade, Audible had the audiobook space largely

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Speaker 2: to itself.

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Speaker 3: But when Spotify bundled audiobooks into its existing music subscription,

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Speaker 3: it suddenly made audiobooks accessible to over six hundred million

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Speaker 3: uses worldwide without them paying an extra cent, and clearly

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Speaker 3: it was working for Spotify yep. Spotify said in October

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Speaker 3: last year that more than half of its two hundred

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Speaker 3: and eighty one million premium subscribers have engaged with an audiobook,

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Speaker 3: and the number of users listening to audiobooks has written

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Speaker 3: by thirty six percent.

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Speaker 1: Over the last year.

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Speaker 2: So by launching a streaming style tier that replicates how

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Speaker 2: Spotify offers its audiobooks. Audible is effectively trying to neutralize

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Speaker 2: the competitors advantage while also leaning into its own strength

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Speaker 2: a much deeper catalog of books, so you can keep

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Speaker 2: reading for the rest of your life without ever opening

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Speaker 2: a physical book. For our third and final story, Australia's

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Speaker 2: major airports made over four hundred million dollars in profit

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Speaker 2: from car parking alone in twenty twenty five.

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Speaker 3: If it already felt like airports were fleecing you, well

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Speaker 3: the numbers say your gut was spot on.

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Speaker 1: Tell me more.

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Speaker 2: Okay, So, Australia's four major airports Sydney, Melbourne, Brisbane and

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Speaker 2: Perth are all owned and operated by private companies. Oh

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Speaker 2: you might think their main business is planes taking off

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Speaker 2: and landing.

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Speaker 1: That's only part of the story.

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Speaker 2: They make their money from not only flights, but also

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Speaker 2: from retail, from property and yep, you guessed it, the

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Speaker 2: cash cow car parking.

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Speaker 3: And now judging boy, the a Triple Ce has just

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Speaker 3: dropped its annual airport monitoring report for the twenty twenty

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Speaker 3: five financial year, and the car parking numbers are uncomfortable

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Speaker 3: for travelers.

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Speaker 2: Ye.

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Speaker 3: All combined, the four major airports made four hundred and

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Speaker 3: two million bucks in operating profit just from car parking.

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Speaker 2: Not revenue. We're talking at profits.

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Speaker 3: Brisbane Airport was the most aslucrative, generating one hundred and

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Speaker 3: twenty five million profit and earning seventy seven cents profit

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Speaker 3: for every dollar charge you cough, well, unloading your luggage,

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Speaker 3: that'll be twenty bucks if your car isn't perfectly aligned

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Speaker 3: between the lines fifteen buck. Sydney Airport also wasn't far behind,

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Speaker 3: or Perth and Melbourne also generated high profits per dollar.

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Speaker 3: Is giving monopoly vibes, So what is the key learning here?

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Speaker 3: Just because the market isn't officially regulated doesn't mean it's competitive.

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Speaker 2: Yeah, b Man, Australia's major airports operate under what economists

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Speaker 2: call a natural monopoly.

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Speaker 3: That's when the infrastructure is so expensive to build that

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Speaker 3: it only really makes sense for one provider to exist

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Speaker 3: in that location.

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Speaker 2: Think airports or electricity grids or water networks.

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Speaker 3: Once it exists, it makes no economic sense for a

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Speaker 3: competitor to build a second identical network right beside it,

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Speaker 3: and that.

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Speaker 2: Gives airport operators significant pricing power.

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Speaker 3: And yep, there are alternative car parks, but it's incredibly inconvenient.

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Speaker 2: You got to trye three kilometers down the road with

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Speaker 2: all your baggage.

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Speaker 1: Shack Josey boy.

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Speaker 3: The four airports between eight and fourteen percent of their

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Speaker 3: total revenue from car parking alone.

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Speaker 2: And they man the A Triple CE has repeatedly flagged

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Speaker 2: that its current monitoring role isn't enough to keep airports

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Speaker 2: in check.

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Speaker 3: But it's also why infrastructure assets like electricity bids and

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Speaker 3: water networks and airports so attractive to long term investors.

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Speaker 2: A lot of them are not flexam. The Formula one

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Speaker 2: is reving this weekend in Australia, but as we know,

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Speaker 2: Formula one isn't just about fast cars anymore, it is

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Speaker 2: multi billion dollar businesses. To make sure to download the

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Speaker 2: app and check out our latest article.

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Speaker 3: Thanks for listening and we'll see you on Wednesday, after

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Speaker 3: the public holiday on Monday,