1 00:00:05,160 --> 00:00:08,160 Speaker 1: This is what the flux. I'm Brett and Justin as 2 00:00:08,280 --> 00:00:09,680 Speaker 1: Monday there seventeenth of March. 3 00:00:10,080 --> 00:00:11,880 Speaker 2: Boy, we may still be a few months away from 4 00:00:11,920 --> 00:00:14,239 Speaker 2: the end of this financial year, but the ATO has 5 00:00:14,280 --> 00:00:17,320 Speaker 2: already put out one group who will be on its 6 00:00:17,400 --> 00:00:20,479 Speaker 2: hit list, and this time it's smallk business owners, particularly 7 00:00:20,520 --> 00:00:23,160 Speaker 2: those using cash to hide some of their business income. 8 00:00:23,520 --> 00:00:27,160 Speaker 2: The ATO is using its swanky data matching to ensure 9 00:00:27,240 --> 00:00:30,240 Speaker 2: they can track inconsistencies and then they're going to come 10 00:00:30,400 --> 00:00:31,360 Speaker 2: knock itam. 11 00:00:31,360 --> 00:00:33,040 Speaker 1: As we head out of summer and get into a 12 00:00:33,159 --> 00:00:35,640 Speaker 1: euro summer, this is the time when it's the most 13 00:00:35,640 --> 00:00:37,320 Speaker 1: important to be planning for the middle of the year 14 00:00:37,360 --> 00:00:40,199 Speaker 1: where you're staying, getting cheap flights and budgeting, which is 15 00:00:40,200 --> 00:00:41,840 Speaker 1: the key if you want to live your best life 16 00:00:41,840 --> 00:00:44,120 Speaker 1: in Europe. We have the post holiday money Regrets. We 17 00:00:44,240 --> 00:00:46,400 Speaker 1: cover the three top tips to prepare for a guilt 18 00:00:46,400 --> 00:00:48,680 Speaker 1: free eurosummer in the flex Ause. Make sure to check 19 00:00:48,720 --> 00:00:49,279 Speaker 1: it out. 20 00:00:49,080 --> 00:00:52,120 Speaker 2: Three insightful stories today Josie Boy, Let's do it for 21 00:00:52,280 --> 00:00:55,280 Speaker 2: our first. Disney is making a big play for a 22 00:00:55,360 --> 00:00:59,400 Speaker 2: new demographic of customers in Australia as it adds ESPN 23 00:00:59,520 --> 00:01:01,480 Speaker 2: to Dizney plus Mickey. 24 00:01:01,200 --> 00:01:03,720 Speaker 1: Mouse pulling on a basketball guernsey, b Man, what is 25 00:01:03,800 --> 00:01:04,360 Speaker 1: going on here? 26 00:01:04,400 --> 00:01:07,240 Speaker 2: So jazzy boy. Disney is one of the biggest brands 27 00:01:07,240 --> 00:01:09,280 Speaker 2: in the whole darn universe. 28 00:01:08,880 --> 00:01:11,320 Speaker 1: With some of the most iconic movies and shows in 29 00:01:11,360 --> 00:01:13,000 Speaker 1: the whole wide world. 30 00:01:13,240 --> 00:01:17,600 Speaker 2: We'd be talking Beauty and the Beast, Monsters, inc Aladdin, Marvel, 31 00:01:17,880 --> 00:01:20,360 Speaker 2: Star Wars, and about a squillion others. 32 00:01:20,120 --> 00:01:22,720 Speaker 1: And b Man. After the success of Netflix, Disney launched 33 00:01:22,760 --> 00:01:25,440 Speaker 1: streaming service Disney Plus in twenty nineteen in the US 34 00:01:25,480 --> 00:01:27,760 Speaker 1: and then shortly after in Australia. 35 00:01:27,319 --> 00:01:30,600 Speaker 2: And Disney Plus has grown to three point one million 36 00:01:30,680 --> 00:01:31,720 Speaker 2: Ossie subscribers. 37 00:01:31,720 --> 00:01:34,720 Speaker 1: But Beman. Apart from the cartoons and the superheroes, Disney 38 00:01:34,760 --> 00:01:36,560 Speaker 1: also owns ESPN. 39 00:01:36,319 --> 00:01:39,240 Speaker 2: The sports broadcaster that owns the rights to the NBA, 40 00:01:39,640 --> 00:01:41,800 Speaker 2: NHL and UFC fights. 41 00:01:41,480 --> 00:01:44,200 Speaker 1: And Beman, Well, Disney has millions of streamers, he wants. 42 00:01:44,040 --> 00:01:48,440 Speaker 2: To acquire more of a particular demographic, young male sports fans, 43 00:01:48,520 --> 00:01:49,520 Speaker 2: which interestingly is. 44 00:01:49,520 --> 00:01:52,000 Speaker 1: A group that skews towards rival streaming services. 45 00:01:52,040 --> 00:01:54,440 Speaker 2: So now Disney will roll out ESPN as part of 46 00:01:54,440 --> 00:01:56,440 Speaker 2: its Disney Plus offering here in Australia. 47 00:01:56,520 --> 00:01:58,920 Speaker 1: For now, ESPN will still be available on Foxtel and 48 00:01:59,000 --> 00:02:01,120 Speaker 1: KO but who knows how long and be man, it 49 00:02:01,200 --> 00:02:03,680 Speaker 1: is pretty clear that Disney plans to grow its market 50 00:02:03,680 --> 00:02:04,800 Speaker 1: share through its bundling. 51 00:02:04,880 --> 00:02:06,640 Speaker 2: Oh yes, so what is the key learning here? 52 00:02:06,760 --> 00:02:10,240 Speaker 1: Bundling allows companies to attract new customers. We are creating 53 00:02:10,280 --> 00:02:11,640 Speaker 1: an entirely new product. 54 00:02:11,639 --> 00:02:15,079 Speaker 2: By combining major sports with existing movies and TV shows, 55 00:02:15,160 --> 00:02:18,520 Speaker 2: Disney Plus increases its appeal to a broader audience. 56 00:02:18,280 --> 00:02:20,440 Speaker 1: Especially younger male sports fans. 57 00:02:20,160 --> 00:02:22,640 Speaker 2: And Jose Boit. Many of these sports fans might not 58 00:02:22,800 --> 00:02:25,440 Speaker 2: have been interested in Disney Plus for things like Marvel 59 00:02:25,560 --> 00:02:27,320 Speaker 2: or Pixar content in the past. 60 00:02:27,040 --> 00:02:31,040 Speaker 1: But now they might subscribe for live NBA or UFC events. 61 00:02:30,720 --> 00:02:33,400 Speaker 2: And bundling can also boost customer retention. 62 00:02:33,560 --> 00:02:36,359 Speaker 1: Yeah, when subscribers get access to both entertainment and live 63 00:02:36,440 --> 00:02:38,799 Speaker 1: sports in one place, they're less likely to cancel. 64 00:02:38,880 --> 00:02:40,680 Speaker 2: We've seen this approach work with Amazon. 65 00:02:41,240 --> 00:02:44,160 Speaker 1: In fact, Amazon Prime Videos churn rate is just eight percent, 66 00:02:44,280 --> 00:02:46,600 Speaker 1: which is the lowest in the streaming industry. 67 00:02:46,240 --> 00:02:48,520 Speaker 2: Because it comes with Amazon Primes shopping perks. 68 00:02:48,560 --> 00:02:51,239 Speaker 1: So b Man, Disney's hoping that by making ESPN part 69 00:02:51,240 --> 00:02:53,480 Speaker 1: of the Disney Plus package, it can win over a 70 00:02:53,520 --> 00:02:54,960 Speaker 1: whole new group of AUSSI. 71 00:02:54,720 --> 00:02:58,280 Speaker 2: Subscribers for our second story. The owner of Pokemon Go 72 00:02:58,720 --> 00:03:00,799 Speaker 2: is going to sell its gaming division for three and 73 00:03:00,840 --> 00:03:03,519 Speaker 2: a half billion US dollars to a video game developer 74 00:03:03,600 --> 00:03:04,919 Speaker 2: named Scopily. 75 00:03:05,080 --> 00:03:07,400 Speaker 1: I remember when everyone and their dog were out catching Pokemon. 76 00:03:07,440 --> 00:03:10,160 Speaker 1: Be man, what is going on here? Good times, Josey boy. 77 00:03:10,160 --> 00:03:12,080 Speaker 2: Everyone was obsessed back in the day with the idea 78 00:03:12,080 --> 00:03:14,040 Speaker 2: of catching Pokemon in the real world. 79 00:03:14,160 --> 00:03:16,200 Speaker 1: Yeah, and be Man. Since it's released in twenty sixteen, 80 00:03:16,240 --> 00:03:18,920 Speaker 1: Pokemon Go has raked in over five point eight billion 81 00:03:19,040 --> 00:03:20,040 Speaker 1: US dollars in revenue. 82 00:03:20,080 --> 00:03:22,680 Speaker 2: That's basically the GDP of a small country like Malta. 83 00:03:22,760 --> 00:03:25,160 Speaker 1: And b Man, it's not all nostalgia. The game still 84 00:03:25,200 --> 00:03:28,480 Speaker 1: has over one hundred and fifteen million active users every month. 85 00:03:28,280 --> 00:03:30,200 Speaker 2: Even though that's half the number of players that had 86 00:03:30,280 --> 00:03:32,200 Speaker 2: during its peak back in twenty sixteen. 87 00:03:32,320 --> 00:03:34,360 Speaker 1: There's still a whole lot of Pokemon trainers out there. 88 00:03:34,400 --> 00:03:35,080 Speaker 1: B Man. Yep. 89 00:03:35,120 --> 00:03:38,520 Speaker 2: But now Neantik has decided to sell their gaming division 90 00:03:38,560 --> 00:03:40,880 Speaker 2: to Scopoly for three and a half billion dollars. 91 00:03:40,640 --> 00:03:41,760 Speaker 1: Which includes Pokemon Go. 92 00:03:41,960 --> 00:03:44,840 Speaker 2: And who is this Scopily that you speak of. 93 00:03:44,840 --> 00:03:47,600 Speaker 1: Well, they're an American video game developer that's now owned 94 00:03:47,640 --> 00:03:49,240 Speaker 1: by the Saudi Sovereign Wealth Fund. 95 00:03:49,280 --> 00:03:53,080 Speaker 2: And this deal between Neantic and Scopoly is Saudi's way 96 00:03:53,120 --> 00:03:56,120 Speaker 2: of adding a power up to their esports portfolio. 97 00:03:56,280 --> 00:03:57,600 Speaker 1: So what is the key learning here? 98 00:03:57,640 --> 00:03:59,880 Speaker 2: A sovereign wealth fund is a bit like a giant 99 00:04:00,080 --> 00:04:02,640 Speaker 2: investment account for an entire country. 100 00:04:02,640 --> 00:04:05,400 Speaker 1: Instead of letting extra money just sit around, governments invest 101 00:04:05,440 --> 00:04:08,920 Speaker 1: it into different assets and even countries need to diversify 102 00:04:08,960 --> 00:04:12,440 Speaker 1: their investments, especially countries that rely on natural resources to 103 00:04:12,480 --> 00:04:13,280 Speaker 1: generate their income. 104 00:04:13,400 --> 00:04:16,320 Speaker 2: So Jaziboi. Even though Saudi Arabia is the largest oil 105 00:04:16,440 --> 00:04:20,320 Speaker 2: exporter in the world, oil is obviously a limited resource. 106 00:04:19,920 --> 00:04:22,440 Speaker 1: And Saudi Arabia needs a plan B in case this 107 00:04:22,560 --> 00:04:23,400 Speaker 1: runs out one day. 108 00:04:23,440 --> 00:04:26,159 Speaker 2: The idea behind Saudi's Wealth Fund is to decrease its 109 00:04:26,160 --> 00:04:27,760 Speaker 2: dependence on oil. 110 00:04:27,480 --> 00:04:30,560 Speaker 1: And enable them to develop other industries like tech, entertainment 111 00:04:30,640 --> 00:04:31,279 Speaker 1: and tourism. 112 00:04:31,320 --> 00:04:33,760 Speaker 2: And Australia also has a sovereign wealth fund called the 113 00:04:33,760 --> 00:04:36,200 Speaker 2: Future Fund, and that was established in two thousand and six. 114 00:04:36,279 --> 00:04:38,200 Speaker 1: And man, that's got a lazy two hundred and twenty 115 00:04:38,240 --> 00:04:40,159 Speaker 1: five billion dollars funded into it. 116 00:04:40,320 --> 00:04:42,440 Speaker 2: Nothing to sneeze out if you ask me, but quite 117 00:04:42,600 --> 00:04:45,440 Speaker 2: minute compared to the Saudi Fund, which is worth nine 118 00:04:45,560 --> 00:04:47,599 Speaker 2: hundred and thirty billion US dollars. 119 00:04:47,600 --> 00:04:49,960 Speaker 1: So Man, well, it might seem surprising that Saudi Arabia 120 00:04:50,000 --> 00:04:52,719 Speaker 1: is buying up video game companies, actually a strategic move 121 00:04:52,800 --> 00:04:54,000 Speaker 1: to level up their economy. 122 00:04:54,040 --> 00:04:57,160 Speaker 2: For our third and final story, the owner of retailer 123 00:04:57,279 --> 00:04:59,960 Speaker 2: Zara has seen its revenue jump over twelve billion US 124 00:05:00,040 --> 00:05:02,080 Speaker 2: U S dollars for the last quarter, but it's warned 125 00:05:02,120 --> 00:05:05,440 Speaker 2: of a very uncertain future because of tariffs and US demand. 126 00:05:05,520 --> 00:05:07,440 Speaker 1: Nothing like a bit of fast fashion and global trade 127 00:05:07,480 --> 00:05:09,720 Speaker 1: drama to keep things interesting, be man, so tell me. 128 00:05:09,600 --> 00:05:11,960 Speaker 2: More, okay. So. Indi Texts is the parent company of 129 00:05:12,000 --> 00:05:15,680 Speaker 2: fast but premium fashion retailer Zara and its classier cousin 130 00:05:15,839 --> 00:05:16,760 Speaker 2: Masmo Duty. 131 00:05:16,800 --> 00:05:20,400 Speaker 1: It also owns Bursch, Gerpull and Bear Zara Home now Jazibo. 132 00:05:20,520 --> 00:05:23,080 Speaker 2: Indi text was originally found that in Spain in nineteen 133 00:05:23,120 --> 00:05:25,760 Speaker 2: eighty five, but has grown to become the world's largest 134 00:05:25,800 --> 00:05:26,839 Speaker 2: fast fashion retailer. 135 00:05:26,839 --> 00:05:30,440 Speaker 1: We've been talking over eight hundred stores across fifty markets 136 00:05:30,440 --> 00:05:31,200 Speaker 1: in the world. 137 00:05:30,960 --> 00:05:33,680 Speaker 2: And they've seen their quarterly revenue jump to twelve point 138 00:05:33,680 --> 00:05:36,400 Speaker 2: two billion US dollars, up nearly one bill from the 139 00:05:36,440 --> 00:05:37,400 Speaker 2: same period last year. 140 00:05:37,440 --> 00:05:39,760 Speaker 1: But be man Despite the positive quarterly update, there are 141 00:05:39,760 --> 00:05:41,640 Speaker 1: a couple of red flags for investors. 142 00:05:41,880 --> 00:05:45,200 Speaker 2: Yes, well, in twenty twenty three, the Americas accounted for 143 00:05:45,320 --> 00:05:47,120 Speaker 2: around twenty percent of all sales, but. 144 00:05:47,160 --> 00:05:49,039 Speaker 1: In twenty twenty four, the America has dropped to just 145 00:05:49,120 --> 00:05:51,120 Speaker 1: eighteen point six percent of all sales. 146 00:05:51,160 --> 00:05:53,839 Speaker 2: And actually, despite this fall in sale in that region, 147 00:05:53,880 --> 00:05:55,560 Speaker 2: it's actually jacked up its pricing. 148 00:05:55,920 --> 00:05:58,440 Speaker 1: Zara raised prices by an average of twenty two percent 149 00:05:58,480 --> 00:06:00,520 Speaker 1: on its dresses and eight percent on st in the 150 00:06:00,600 --> 00:06:01,719 Speaker 1: US over the past year. 151 00:06:01,800 --> 00:06:03,520 Speaker 2: Quite a statement from you there, Jersey boys. So what 152 00:06:03,600 --> 00:06:04,400 Speaker 2: is the key learning here? 153 00:06:04,480 --> 00:06:07,760 Speaker 1: Pricing strategy can be a very delicate balancing. 154 00:06:07,279 --> 00:06:11,880 Speaker 2: App Yeah, luxury brands can generally raise prices with minimal impact. 155 00:06:11,600 --> 00:06:13,880 Speaker 1: Because their customers expect the exclusivity. 156 00:06:13,880 --> 00:06:16,680 Speaker 2: But on the other hand, fast fashion thrives on affordability, and. 157 00:06:16,680 --> 00:06:19,320 Speaker 1: By jacking up its prices, Zara risks falling into an 158 00:06:19,400 --> 00:06:20,400 Speaker 1: awkward middle. 159 00:06:20,120 --> 00:06:23,360 Speaker 2: Ground, too expensive for budget shoppers yet not premium enough 160 00:06:23,440 --> 00:06:24,400 Speaker 2: for luxury buyers. 161 00:06:24,400 --> 00:06:26,039 Speaker 1: We know the likes of she in h and M 162 00:06:26,080 --> 00:06:28,279 Speaker 1: and even team who are taking the world and the 163 00:06:28,400 --> 00:06:29,159 Speaker 1: US by store. 164 00:06:29,240 --> 00:06:31,599 Speaker 2: In fact, she and sales in the US reached around 165 00:06:31,680 --> 00:06:33,839 Speaker 2: twenty five billion US dollars last year, so be. 166 00:06:33,920 --> 00:06:36,320 Speaker 1: Man if Indi Text wants to grow its America's revenue 167 00:06:36,320 --> 00:06:39,279 Speaker 1: once again. It needs to differentiate Zara from budget fast 168 00:06:39,279 --> 00:06:40,360 Speaker 1: fashion brands. 169 00:06:40,080 --> 00:06:43,160 Speaker 2: But also ensure it doesn't alienate its core customer base. 170 00:06:43,520 --> 00:06:45,960 Speaker 1: Box Sam, did you know there is an optimal day 171 00:06:46,040 --> 00:06:49,719 Speaker 1: and time to book your flights and accommodation for overseas travel. 172 00:06:49,800 --> 00:06:51,760 Speaker 1: We've got it all covered in the Fox apps. Make 173 00:06:51,760 --> 00:06:52,719 Speaker 1: sure to check it all out. 174 00:06:52,760 --> 00:06:55,600 Speaker 2: Thanks for listening and we'll see you on Wednesday.