1 00:00:05,280 --> 00:00:06,800 Speaker 1: This is what the Flux. 2 00:00:06,880 --> 00:00:09,200 Speaker 2: I'm Brett and I'm Justin and it's Monday, the twelfth 3 00:00:09,240 --> 00:00:09,640 Speaker 2: of August. 4 00:00:09,640 --> 00:00:12,320 Speaker 1: Study boy. You may have noticed Meta's new AI chat 5 00:00:12,320 --> 00:00:15,319 Speaker 1: fot over the past few weeks on install, Facebook, WhatsApp. Now, 6 00:00:15,320 --> 00:00:18,520 Speaker 1: the problem is it isn't very smart. Reports are that 7 00:00:18,600 --> 00:00:21,160 Speaker 1: it's failing some pretty simple year eight math. 8 00:00:21,239 --> 00:00:21,439 Speaker 2: Wow. 9 00:00:21,520 --> 00:00:23,639 Speaker 1: So the big question is have can you trusted to 10 00:00:23,640 --> 00:00:26,439 Speaker 1: write your UNI essay when it can't even solve a 11 00:00:26,560 --> 00:00:28,040 Speaker 1: basic maths problem. 12 00:00:28,120 --> 00:00:30,400 Speaker 2: Lots of hallucinations going on, b man, uh huh. Now 13 00:00:30,440 --> 00:00:32,880 Speaker 2: the numbers are in sixty six percent of Flux users 14 00:00:32,920 --> 00:00:36,479 Speaker 2: have no idea how many subscriptions they've got Netflix and 15 00:00:36,560 --> 00:00:39,360 Speaker 2: Spotify and Amazon Prime, Apple, like Cloud Gym memberships. Honestly, 16 00:00:39,360 --> 00:00:41,159 Speaker 2: it never ends, and that's why we're so excited to 17 00:00:41,240 --> 00:00:44,080 Speaker 2: launch the Flux Subscription track app. It takes thirty seconds 18 00:00:44,080 --> 00:00:46,840 Speaker 2: to securely connect your account, and our subscription wizard will 19 00:00:46,840 --> 00:00:49,479 Speaker 2: identify all of the subscriptions in the one spot, including 20 00:00:49,600 --> 00:00:51,360 Speaker 2: when they are coming out. The man, I've gotta be honest, 21 00:00:51,400 --> 00:00:53,960 Speaker 2: it's already saved me hundreds of dollars. So flox am 22 00:00:53,960 --> 00:00:55,840 Speaker 2: if you want to see all your suscriptions in one spot. 23 00:00:55,880 --> 00:00:57,760 Speaker 2: Make sure to check it out in the budgeting feature 24 00:00:57,800 --> 00:00:58,520 Speaker 2: of the Flux app. 25 00:00:58,560 --> 00:01:01,720 Speaker 1: Three two good to be true stories Today, Juzzy Boys, 26 00:01:01,800 --> 00:01:05,000 Speaker 1: let's do it for our first NewsCorp. The publishing behemoth 27 00:01:05,040 --> 00:01:09,000 Speaker 1: has officially put Foxtel and its streaming services up for sale. 28 00:01:09,400 --> 00:01:11,800 Speaker 2: Just really starting to turn that Foxtel ship for around 29 00:01:11,800 --> 00:01:13,000 Speaker 2: by man, so tell me more so. 30 00:01:13,120 --> 00:01:15,440 Speaker 1: Juzzy Boy News Corp. Is the company behind a whole 31 00:01:15,440 --> 00:01:19,200 Speaker 1: heap of newspapers like The Herald Sun and The Australian. 32 00:01:18,720 --> 00:01:20,840 Speaker 2: As well as the Wall Street Journal and the majority 33 00:01:20,840 --> 00:01:22,640 Speaker 2: stake in the Aria Group, which is the owner of 34 00:01:22,680 --> 00:01:23,760 Speaker 2: real estate dot com dot AU. 35 00:01:23,880 --> 00:01:26,400 Speaker 1: Oh and they also happen to own sixty five percent 36 00:01:26,600 --> 00:01:27,480 Speaker 1: of Foxtel. 37 00:01:27,880 --> 00:01:30,240 Speaker 2: The other thirty five percent is owned by the tell 38 00:01:30,319 --> 00:01:32,080 Speaker 2: part of the name that'd be Telstrat. 39 00:01:31,800 --> 00:01:34,319 Speaker 1: And that was when they joined forces and launched Foxtel 40 00:01:34,400 --> 00:01:35,920 Speaker 1: in nineteen and ninety five. 41 00:01:36,319 --> 00:01:38,760 Speaker 2: Man Well, Foxdale's PATV was the go to service in 42 00:01:38,800 --> 00:01:42,000 Speaker 2: its heyday. Its subscriber numbers have been rapidly declining over 43 00:01:42,000 --> 00:01:42,679 Speaker 2: the past five. 44 00:01:42,600 --> 00:01:46,080 Speaker 1: Years, mainly thank you to the growth of streaming services. 45 00:01:46,160 --> 00:01:48,000 Speaker 2: In fact, there are only now around one and a 46 00:01:48,040 --> 00:01:51,120 Speaker 2: half million fox stale subscribers in Australia. 47 00:01:50,480 --> 00:01:53,400 Speaker 1: But Foxdale rolled out ko It's sports streaming service. 48 00:01:53,440 --> 00:01:55,760 Speaker 2: It rolled out binge it's entertainment streaming service. 49 00:01:55,880 --> 00:01:58,800 Speaker 1: It also rolled out Flash, its new streaming service, which 50 00:01:58,880 --> 00:02:00,280 Speaker 1: I use daily Judge. 51 00:02:00,720 --> 00:02:03,480 Speaker 2: I didn't at its total fox sale subscriber base has 52 00:02:03,520 --> 00:02:05,800 Speaker 2: grown back to four point seven million people. 53 00:02:05,840 --> 00:02:08,280 Speaker 1: But now juzzy Boy News Corp has said that Foxtel 54 00:02:08,560 --> 00:02:12,440 Speaker 1: is up for sale for about the tenth time. Foxel 55 00:02:12,480 --> 00:02:15,320 Speaker 1: claims that it has received third party interest. 56 00:02:15,000 --> 00:02:17,920 Speaker 2: But getting Foxtel back to peak profitability might just be 57 00:02:18,040 --> 00:02:19,280 Speaker 2: too hard for News Corp. 58 00:02:19,639 --> 00:02:20,919 Speaker 1: So what is the key learning here? 59 00:02:21,000 --> 00:02:23,720 Speaker 2: The shift to digital content might be easy for viewers, 60 00:02:23,800 --> 00:02:26,240 Speaker 2: but it's very hard on the margins of old school 61 00:02:26,240 --> 00:02:26,960 Speaker 2: players YEP. 62 00:02:26,960 --> 00:02:30,760 Speaker 1: Streaming platforms like Netflix, Disney Plus even ko Sports offer 63 00:02:30,800 --> 00:02:34,200 Speaker 1: consumers the flexibility to watch their content on demand, but. 64 00:02:34,160 --> 00:02:36,520 Speaker 2: Be man, it comes at a lower cost than traditional 65 00:02:36,560 --> 00:02:37,639 Speaker 2: pay TV subscriptions. 66 00:02:37,680 --> 00:02:40,919 Speaker 1: Foxdel generates an average of ninety bucks per month from 67 00:02:40,919 --> 00:02:42,400 Speaker 1: its set top box customers. 68 00:02:42,520 --> 00:02:44,480 Speaker 2: Compare that to streaming services, which are less than a 69 00:02:44,560 --> 00:02:45,919 Speaker 2: quarter of the price. 70 00:02:45,800 --> 00:02:49,079 Speaker 1: And as a result, streaming services typically have leaner profit 71 00:02:49,120 --> 00:02:51,239 Speaker 1: margins compared to traditional PATV. 72 00:02:51,400 --> 00:02:54,080 Speaker 2: In fact, be Man, Foxell's, Ko and Binge and Foxel 73 00:02:54,160 --> 00:02:56,800 Speaker 2: now makes up sixty six percent of their customer base 74 00:02:56,880 --> 00:02:59,320 Speaker 2: but only twenty three percent of their revenue. 75 00:02:59,360 --> 00:03:02,920 Speaker 1: So Fox has struggled to balance its legacy PATV business 76 00:03:02,919 --> 00:03:06,320 Speaker 1: with the growth of competitor streaming services. 77 00:03:05,800 --> 00:03:08,440 Speaker 2: And clearly NewsCorp wants to hand all this problem to 78 00:03:08,520 --> 00:03:10,480 Speaker 2: the new owners by putting it up for sale. 79 00:03:10,520 --> 00:03:14,600 Speaker 1: For our second story, the parent company of clothing brands Millers, 80 00:03:14,680 --> 00:03:17,680 Speaker 1: Katie's and Nonybe saw its share price dropped by more 81 00:03:17,720 --> 00:03:21,280 Speaker 1: than forty percent last week as it struggles to stay afloat. 82 00:03:21,440 --> 00:03:23,920 Speaker 2: Jeez, some physical retailers getting hit hard at the moment 83 00:03:23,960 --> 00:03:25,400 Speaker 2: be manned, so tell me more well. 84 00:03:25,480 --> 00:03:28,400 Speaker 1: Mosaic Brands is the parent company which specializes in women's 85 00:03:28,440 --> 00:03:29,480 Speaker 1: budget clothing brands. 86 00:03:29,520 --> 00:03:33,200 Speaker 2: We're talking Nonybe, Katies, Millers, Rockman's, Rivers and four other 87 00:03:33,240 --> 00:03:33,680 Speaker 2: brands as. 88 00:03:33,639 --> 00:03:36,040 Speaker 1: Well and Josey Wait. Although these brands may not be 89 00:03:36,160 --> 00:03:39,360 Speaker 1: where you shop, they are a seriously large outfit. 90 00:03:39,400 --> 00:03:42,560 Speaker 2: We're talking four thousand staff in seven hundred stores across Australia. 91 00:03:42,600 --> 00:03:44,680 Speaker 1: But when COVID hit they had to shut their stores 92 00:03:44,720 --> 00:03:47,720 Speaker 1: down and weren't really set up well for the whole 93 00:03:47,760 --> 00:03:48,680 Speaker 1: online store fan. 94 00:03:48,800 --> 00:03:50,839 Speaker 2: They got whacked with one hundred and seventy million dollars 95 00:03:50,840 --> 00:03:53,120 Speaker 2: lous in twenty twenty and haven't really been the same 96 00:03:53,120 --> 00:03:53,640 Speaker 2: ever since. 97 00:03:53,760 --> 00:03:57,200 Speaker 1: So last week Mosaic Brands announced a trading halt. 98 00:03:57,040 --> 00:03:59,960 Speaker 2: Basically so could look at ways to restructure and refine. 99 00:04:00,200 --> 00:04:01,480 Speaker 2: It's the company and James Boy. 100 00:04:01,640 --> 00:04:04,600 Speaker 1: It's fair to say that investors didn't take to this 101 00:04:05,000 --> 00:04:05,480 Speaker 1: very well. 102 00:04:05,520 --> 00:04:08,080 Speaker 2: Who no, no no. In fact, Mosaic's share price dropped 103 00:04:08,120 --> 00:04:10,640 Speaker 2: over forty three percent during the week when it wasn't 104 00:04:10,720 --> 00:04:11,520 Speaker 2: in its trading hold. 105 00:04:11,600 --> 00:04:13,760 Speaker 1: But one of the biggest challenges for Mosaic Brands is 106 00:04:13,760 --> 00:04:17,040 Speaker 1: that the majority of its brands actually compete against each other. 107 00:04:17,200 --> 00:04:19,120 Speaker 2: Oh no, no, no, So tell me they man, what 108 00:04:19,279 --> 00:04:20,080 Speaker 2: is the key leading here? 109 00:04:20,279 --> 00:04:23,760 Speaker 1: Market cannibalization can be a huge issue for companies that 110 00:04:23,839 --> 00:04:27,599 Speaker 1: own multiple brands targeting the same customer or the same audience, so. 111 00:04:27,680 --> 00:04:30,200 Speaker 2: Theyman on face value. Having multiple brands in the same 112 00:04:30,240 --> 00:04:32,520 Speaker 2: industry kind of sounds like a pretty good strategy to 113 00:04:32,600 --> 00:04:33,480 Speaker 2: dominate that market. 114 00:04:33,560 --> 00:04:36,159 Speaker 1: Yeah, but it can backfire too, because instead of attracting 115 00:04:36,160 --> 00:04:38,720 Speaker 1: a wider audience, the brands end up competing against each 116 00:04:38,720 --> 00:04:40,080 Speaker 1: other for the same customer, and. 117 00:04:39,960 --> 00:04:43,440 Speaker 2: This can lead to unnecessary competition within the broader company, and. 118 00:04:43,360 --> 00:04:46,320 Speaker 1: It can drive up costs for separate staff and advertising 119 00:04:46,360 --> 00:04:47,640 Speaker 1: and logistics, and theybanned. 120 00:04:47,680 --> 00:04:49,719 Speaker 2: This was the same problem that West Farmers faced with 121 00:04:49,800 --> 00:04:51,320 Speaker 2: Kmart and Target back in the day. 122 00:04:51,400 --> 00:04:54,640 Speaker 1: That's right, those two discount department stores essentially competed for 123 00:04:54,680 --> 00:04:56,200 Speaker 1: the same kind of customer. 124 00:04:55,839 --> 00:04:58,240 Speaker 2: And then they realized that Target just couldn't compete with 125 00:04:58,360 --> 00:05:01,200 Speaker 2: Kmart's cheap, cheap prices. It ended up dropping Target store 126 00:05:01,279 --> 00:05:03,720 Speaker 2: numbers from almost three hundred to just over one twenty. 127 00:05:03,760 --> 00:05:06,719 Speaker 2: For our third and final story, Life three sixty share 128 00:05:06,760 --> 00:05:09,679 Speaker 2: prices hit an all time high as across the seventy 129 00:05:09,920 --> 00:05:11,159 Speaker 2: million user bar. Wow. 130 00:05:11,200 --> 00:05:12,880 Speaker 1: Wait, Juzzi boy, you got to say that is a 131 00:05:12,880 --> 00:05:15,680 Speaker 1: lot of helicopter parents. Tell me what is going on here? 132 00:05:15,760 --> 00:05:18,440 Speaker 2: Okay? So, Life three sixty is the family social networking 133 00:05:18,440 --> 00:05:20,320 Speaker 2: app founded in two thousand and eight in San Francisco, 134 00:05:20,400 --> 00:05:22,160 Speaker 2: but it's actually listed on the ASX. 135 00:05:22,279 --> 00:05:25,400 Speaker 1: It's a subscription based platform that basically lets family and 136 00:05:25,440 --> 00:05:27,520 Speaker 1: friends track each other's location and. 137 00:05:27,480 --> 00:05:28,480 Speaker 2: They're driving speeds. 138 00:05:29,040 --> 00:05:31,880 Speaker 1: I know it's borderline creepy, but it's definitely proven to 139 00:05:31,880 --> 00:05:32,480 Speaker 1: be very popular. 140 00:05:32,560 --> 00:05:34,600 Speaker 2: Yeah. In fact, Life three sixties just announced that it's 141 00:05:34,640 --> 00:05:36,360 Speaker 2: hit seventy million users. 142 00:05:36,120 --> 00:05:38,159 Speaker 1: On its app and this new cent Life three sixty 143 00:05:38,200 --> 00:05:40,400 Speaker 1: shares fly and I'm talking eighteen percent to an all 144 00:05:40,440 --> 00:05:41,039 Speaker 1: time high. 145 00:05:41,120 --> 00:05:43,440 Speaker 2: They also up their revenue guidance and they're expecting to 146 00:05:43,440 --> 00:05:45,719 Speaker 2: make three hundred and seventy eight million US dollars in 147 00:05:45,800 --> 00:05:46,600 Speaker 2: annual revenue. 148 00:05:46,640 --> 00:05:48,880 Speaker 1: But josey boy, that's not all investors were excited about. 149 00:05:49,000 --> 00:05:51,280 Speaker 2: Oh no, no, no. Live three sixty also announced its 150 00:05:51,320 --> 00:05:53,919 Speaker 2: other revenue, which includes this new ad business, grew twelve 151 00:05:53,960 --> 00:05:55,280 Speaker 2: percent for the June quarter. 152 00:05:55,160 --> 00:05:57,520 Speaker 1: And it's planning to expand its AD business this year 153 00:05:57,520 --> 00:06:01,080 Speaker 1: to unlock more revenue opportunity. So what is the key 154 00:06:01,120 --> 00:06:03,479 Speaker 1: learning heat First it was ads, then it was subscriptions, 155 00:06:03,480 --> 00:06:06,800 Speaker 1: and now it's subscriptions plus ads. Man, Remember when the 156 00:06:06,800 --> 00:06:08,680 Speaker 1: famous phrase used to be, if you're not paying for 157 00:06:08,720 --> 00:06:11,360 Speaker 1: the product, you are the product. I actually do remember 158 00:06:11,360 --> 00:06:12,600 Speaker 1: that very well, jus boy, But. 159 00:06:12,520 --> 00:06:14,400 Speaker 2: It's not so true anymore, because now you can be 160 00:06:14,440 --> 00:06:16,760 Speaker 2: paying for the product by a subscription and be the 161 00:06:16,800 --> 00:06:18,240 Speaker 2: product through ads. 162 00:06:18,080 --> 00:06:20,919 Speaker 1: And you see, juzzy boy. Many businesses that start with 163 00:06:20,960 --> 00:06:23,320 Speaker 1: an ad based revenue model have switched it up to 164 00:06:23,400 --> 00:06:26,800 Speaker 1: a subscription based revenue model to expand their earning potential. 165 00:06:26,839 --> 00:06:29,560 Speaker 2: But now we're else seeing subscription based businesses expand their 166 00:06:29,560 --> 00:06:30,920 Speaker 2: earning potential through ads. 167 00:06:31,120 --> 00:06:34,240 Speaker 1: Yeah, think Netflix with its new ad tier, and Disney's 168 00:06:34,279 --> 00:06:35,720 Speaker 1: also going to introduce ads soon. 169 00:06:35,800 --> 00:06:37,760 Speaker 2: Our old customers might not be too jazzed about this. 170 00:06:37,880 --> 00:06:40,880 Speaker 2: Investors are habitable. Man. Is there any worse feeling than 171 00:06:40,880 --> 00:06:43,039 Speaker 2: seeing a subscription that you haven't used in months but 172 00:06:43,080 --> 00:06:43,840 Speaker 2: you're paying for it? 173 00:06:43,880 --> 00:06:45,920 Speaker 1: Agonizing, genuinely painful stuff. 174 00:06:45,680 --> 00:06:47,320 Speaker 2: But even better when you cancel it and realize it 175 00:06:47,320 --> 00:06:49,320 Speaker 2: you're saving money out. We've got that all covered for 176 00:06:49,400 --> 00:06:51,120 Speaker 2: you in the Flux apps. Make sure you check it 177 00:06:51,200 --> 00:06:52,560 Speaker 2: out in the budgeting feature today. 178 00:06:52,600 --> 00:06:54,960 Speaker 1: Thanks for listening, and we'll see you on Wednesday.