1 00:00:05,160 --> 00:00:07,840 Speaker 1: This is what the Flux. I'm bred and I'm justin 2 00:00:07,920 --> 00:00:09,520 Speaker 1: and it's Monday, the nineteenth of May. 3 00:00:09,640 --> 00:00:11,959 Speaker 2: Does the boy ever had Siri but into your convo 4 00:00:12,039 --> 00:00:15,400 Speaker 2: like an uninvited guest all the time, then you might 5 00:00:15,440 --> 00:00:18,439 Speaker 2: be entitled to some cash from Apple. It's part of 6 00:00:18,440 --> 00:00:21,560 Speaker 2: a ninety five million US dollar settlement from a class 7 00:00:21,600 --> 00:00:25,200 Speaker 2: action claiming that Series been a bit too nosy. Siria 8 00:00:25,239 --> 00:00:30,160 Speaker 2: has allegedly been eavesdropping on private chats after accidental activations. 9 00:00:30,200 --> 00:00:32,240 Speaker 2: But don't go planning your early retirement. 10 00:00:32,360 --> 00:00:32,760 Speaker 1: Just yeah. 11 00:00:32,880 --> 00:00:35,320 Speaker 2: If this money was split between the one point four 12 00:00:35,360 --> 00:00:39,000 Speaker 2: billion Apple customers globally, we'd be looking at something like 13 00:00:39,159 --> 00:00:40,560 Speaker 2: seven cents each. 14 00:00:41,159 --> 00:00:43,360 Speaker 1: Better than nothing. Be man, I'll take it me too. 15 00:00:43,440 --> 00:00:46,360 Speaker 1: Thinking of getting money back from providers this month in 16 00:00:46,400 --> 00:00:48,920 Speaker 1: the Flex Academy, it's all about getting a better deal 17 00:00:48,960 --> 00:00:51,760 Speaker 1: from your bank, utilities, provider, and lender as well, because 18 00:00:51,840 --> 00:00:53,479 Speaker 1: let me tell you one thing, fox Am, they are 19 00:00:53,600 --> 00:00:55,720 Speaker 1: not treating you right and you deserve better. So in 20 00:00:55,720 --> 00:00:57,440 Speaker 1: this Academy, we're going to teach you how to stand 21 00:00:57,520 --> 00:01:00,000 Speaker 1: up for yourself and save some serious cash. Make sure 22 00:01:00,000 --> 00:01:01,920 Speaker 1: to download the Flux app and check out the Academy 23 00:01:01,960 --> 00:01:02,360 Speaker 1: this month. 24 00:01:02,440 --> 00:01:05,680 Speaker 2: Three market worthy stories today, Juzzy boy, let's do it 25 00:01:05,720 --> 00:01:09,440 Speaker 2: for our first. Zero's full year profit jump thirty percent 26 00:01:09,680 --> 00:01:12,440 Speaker 2: as it grows its user base. But the company uses 27 00:01:12,440 --> 00:01:13,640 Speaker 2: a simple method to grow. 28 00:01:13,520 --> 00:01:16,280 Speaker 1: Nothing like payroll and bass statements to get your heart racing. DMan, 29 00:01:16,360 --> 00:01:17,240 Speaker 1: so more so. 30 00:01:17,400 --> 00:01:19,880 Speaker 2: Zero with an X is the accounting software that was 31 00:01:19,880 --> 00:01:22,440 Speaker 2: created in New Zealand in two thousand and six. 32 00:01:22,319 --> 00:01:25,440 Speaker 1: One of the oga accounting platforms to launch in the cloud. 33 00:01:25,240 --> 00:01:27,920 Speaker 2: While the Noyobs and the Quickens of the world were 34 00:01:27,959 --> 00:01:31,440 Speaker 2: still malfunctioning on scratched CD ROMs. 35 00:01:31,760 --> 00:01:34,360 Speaker 1: And Zero's grown from a humble New Zealand based company 36 00:01:34,400 --> 00:01:37,120 Speaker 1: to a global accounting giant with over four point four 37 00:01:37,240 --> 00:01:38,280 Speaker 1: million subscribers. 38 00:01:38,400 --> 00:01:41,120 Speaker 2: And now Zero has trumpeted its revenue for the full 39 00:01:41,200 --> 00:01:42,520 Speaker 2: year which ended in March. 40 00:01:42,680 --> 00:01:45,240 Speaker 1: YEP saw its revenue increased by twenty three percent to 41 00:01:45,280 --> 00:01:46,720 Speaker 1: one point nine billion dollars. 42 00:01:46,760 --> 00:01:49,480 Speaker 2: But it was Zero's net profit after tax or NPAT 43 00:01:49,480 --> 00:01:52,040 Speaker 2: that really got investors licking their lips. It was up 44 00:01:52,080 --> 00:01:52,680 Speaker 2: thirty percent. 45 00:01:52,760 --> 00:01:54,960 Speaker 1: And be man, what was their secret source for this? 46 00:01:55,200 --> 00:01:57,760 Speaker 2: Well, juzyboy, it was not Ai, and it wasn't a 47 00:01:57,760 --> 00:02:01,040 Speaker 2: wild acquisition, just good old fashion price hikes. 48 00:02:01,320 --> 00:02:03,720 Speaker 1: Yep, Zero jacked up the price of their services, which 49 00:02:03,720 --> 00:02:06,840 Speaker 1: meant the average revenue per user roads by fifteen percent. 50 00:02:06,600 --> 00:02:09,960 Speaker 2: And despite this, the customer base still grew by six percent. 51 00:02:10,120 --> 00:02:13,000 Speaker 1: But being maned with its strong and very sticky product, 52 00:02:13,040 --> 00:02:16,040 Speaker 1: it seems that even its increased pricing isn't holding back 53 00:02:16,040 --> 00:02:17,000 Speaker 1: customers these days. 54 00:02:17,120 --> 00:02:19,560 Speaker 2: Oh that's an interesting call, So what's the key learning here? 55 00:02:19,639 --> 00:02:22,720 Speaker 1: Product stickiness refers to how likely customers are to keep 56 00:02:22,840 --> 00:02:25,560 Speaker 1: using a product over time and how difficult it is 57 00:02:25,600 --> 00:02:26,440 Speaker 1: for them to stop. 58 00:02:26,560 --> 00:02:30,239 Speaker 2: A sticky product is a product that becomes so embedded 59 00:02:30,240 --> 00:02:32,399 Speaker 2: in your life or your business that you are very 60 00:02:32,520 --> 00:02:34,200 Speaker 2: unlikely to switch away from it. 61 00:02:34,160 --> 00:02:35,600 Speaker 1: Even when alternatives exist. 62 00:02:35,720 --> 00:02:38,200 Speaker 2: All the prices go up, and Jason Boy Accounting software 63 00:02:38,280 --> 00:02:40,160 Speaker 2: is one of the stickiest products out there. 64 00:02:40,360 --> 00:02:42,560 Speaker 1: Once a business is set up on a platform like Zero, 65 00:02:42,680 --> 00:02:45,200 Speaker 1: switching to a new one is a massive pain in 66 00:02:45,240 --> 00:02:45,760 Speaker 1: the backside. 67 00:02:45,760 --> 00:02:48,720 Speaker 2: You're going to move over all of your data, retrain staff, 68 00:02:49,040 --> 00:02:50,120 Speaker 2: change workflows. 69 00:02:50,160 --> 00:02:51,919 Speaker 1: And that's why Zero has been able to push through 70 00:02:51,960 --> 00:02:54,720 Speaker 1: a fifteen percent price hike and still go with subscriber 71 00:02:54,720 --> 00:02:55,959 Speaker 1: base by six percent. 72 00:02:55,720 --> 00:02:59,160 Speaker 2: Because most businesses would rather absorb the cost than go 73 00:02:59,240 --> 00:03:01,400 Speaker 2: through the hassle of switching for. 74 00:03:01,480 --> 00:03:05,480 Speaker 1: Our second story. Birbery, one of the world's biggest luxury brands, 75 00:03:05,560 --> 00:03:08,160 Speaker 1: is planning to cut one fifth of its global workforce 76 00:03:08,240 --> 00:03:11,840 Speaker 1: after a seventy five million pound loss. Birbury is making 77 00:03:11,880 --> 00:03:13,520 Speaker 1: some brutal wardrobe changes. 78 00:03:13,520 --> 00:03:14,320 Speaker 2: Tell me more so. 79 00:03:14,400 --> 00:03:17,520 Speaker 1: Birbury's, the British luxury fashion house, was founded in eighteen 80 00:03:17,600 --> 00:03:20,240 Speaker 1: fifty six yep. Nearly one hundred and seventy years. 81 00:03:20,040 --> 00:03:23,320 Speaker 2: Ago, best known for its trench coats and that beig 82 00:03:23,720 --> 00:03:25,480 Speaker 2: check pattern. I understand yep. 83 00:03:25,560 --> 00:03:29,320 Speaker 1: Fact man. Well, many luxury brands have moved production off shore. 84 00:03:29,480 --> 00:03:33,360 Speaker 1: Berbery's trench coats are still made in Castleford at Yorkshire. Wow. 85 00:03:33,400 --> 00:03:36,280 Speaker 2: That is very insightful, jazy boy. And the past twelve 86 00:03:36,320 --> 00:03:38,680 Speaker 2: months have been somewhat challenging for Birbery yep. 87 00:03:38,720 --> 00:03:41,240 Speaker 1: Its revenue dropped seventeen percent to two point four to 88 00:03:41,280 --> 00:03:42,280 Speaker 1: six billion pounds. 89 00:03:42,280 --> 00:03:44,120 Speaker 2: Even worse than that, it went from a two hundred 90 00:03:44,120 --> 00:03:47,840 Speaker 2: and seventy million pound profit to a seventy five million 91 00:03:47,880 --> 00:03:48,760 Speaker 2: pound net lost. 92 00:03:48,840 --> 00:03:51,240 Speaker 1: So now Birbery's pulling out the shears as a plans 93 00:03:51,280 --> 00:03:53,560 Speaker 1: to cut seventeen hundred jobs globally. 94 00:03:53,720 --> 00:03:56,400 Speaker 2: We're talking nearly a fifth of its workforce, and. 95 00:03:56,360 --> 00:03:58,760 Speaker 1: After the back of this newsbee Man Birbury shares actually 96 00:03:58,800 --> 00:04:01,240 Speaker 1: dropped seventeen percent on the day of the announcement. 97 00:04:01,320 --> 00:04:05,600 Speaker 2: Because luxury brands need to respond to market conditions, So what. 98 00:04:05,560 --> 00:04:06,440 Speaker 1: Is the key learning here? 99 00:04:06,560 --> 00:04:11,040 Speaker 2: Even prestige brands feel the pinch when consumer sentiment drops. 100 00:04:11,120 --> 00:04:14,200 Speaker 1: Yeah, luxury brands often get painted as recession proof, but 101 00:04:14,240 --> 00:04:17,200 Speaker 1: be Man, let me tell you one thing is not always. 102 00:04:16,800 --> 00:04:19,400 Speaker 2: The case, and Juzy Boy Burbery is especially feeling the 103 00:04:19,400 --> 00:04:20,719 Speaker 2: pinch in markets like Chaina. 104 00:04:20,880 --> 00:04:23,640 Speaker 1: Chinese shoppers account for thirty five to forty percent of 105 00:04:23,680 --> 00:04:25,200 Speaker 1: global luxury spending, and. 106 00:04:25,240 --> 00:04:27,840 Speaker 2: When those shoppers pull back, Burbery really feels it. 107 00:04:27,880 --> 00:04:30,320 Speaker 1: In fact, be Man, over the last twelve months, Burbery 108 00:04:30,400 --> 00:04:33,720 Speaker 1: has suffered a fifteen percent fall in Chinese sales. 109 00:04:33,400 --> 00:04:37,000 Speaker 2: And Joesyboy Berbery is not alone in the fashion trenches. 110 00:04:37,120 --> 00:04:37,280 Speaker 1: Nope. 111 00:04:37,320 --> 00:04:39,920 Speaker 2: Beaucy sales dropped twenty five percent in the most recent quarter, 112 00:04:40,080 --> 00:04:43,200 Speaker 2: while Saint Laurent experienced a nine percent decrease in sales 113 00:04:43,240 --> 00:04:45,640 Speaker 2: and Balenciaga saw a seven percent decline. 114 00:04:45,680 --> 00:04:47,680 Speaker 1: So be Man. Even if your brand is strong, you 115 00:04:47,800 --> 00:04:52,160 Speaker 1: cannot ignore the macro conditions. For our third and final story, 116 00:04:52,320 --> 00:04:56,039 Speaker 1: Warner Brothers Discovery is backtracking on its Max branding for 117 00:04:56,080 --> 00:04:59,520 Speaker 1: its streaming service, and HBO is back in the spotlight. 118 00:05:00,160 --> 00:05:03,839 Speaker 2: Max experiment is over. HBO is back on the billing. 119 00:05:03,960 --> 00:05:04,760 Speaker 2: What is the story? 120 00:05:04,800 --> 00:05:08,279 Speaker 1: So Man, Warner Brothers Discovery formed after a forty three 121 00:05:08,400 --> 00:05:11,360 Speaker 1: billion US dollar mega merger in twenty twenty two between 122 00:05:11,480 --> 00:05:13,600 Speaker 1: Watermedia and Discovery. 123 00:05:13,080 --> 00:05:16,080 Speaker 2: And in twenty twenty three they ditched the HBO from 124 00:05:16,320 --> 00:05:18,960 Speaker 2: HBO Max to create a new broader brand and it 125 00:05:19,000 --> 00:05:21,479 Speaker 2: went by the name of Max and b Man. 126 00:05:21,560 --> 00:05:25,320 Speaker 1: At the time, they believe that the HBO brand meant prestige. 127 00:05:25,520 --> 00:05:28,039 Speaker 2: They wanted to broaden the appeal because it now included 128 00:05:28,200 --> 00:05:29,839 Speaker 2: lifestyle content from Discovery. 129 00:05:29,839 --> 00:05:32,400 Speaker 1: The problem was, b Man, nobody asked for this change. 130 00:05:32,720 --> 00:05:34,960 Speaker 2: Let's just say it didn't max out in terms of 131 00:05:35,120 --> 00:05:36,080 Speaker 2: brand recognition. 132 00:05:36,200 --> 00:05:38,400 Speaker 1: In fact, it just confused people a lot. 133 00:05:38,560 --> 00:05:41,760 Speaker 2: So while HBO was out there winning Emmys, Max felt 134 00:05:41,760 --> 00:05:43,600 Speaker 2: like a vague, distant cousin. 135 00:05:43,800 --> 00:05:46,880 Speaker 1: So now Warner Brothers Discovery is reversing the decision and 136 00:05:46,920 --> 00:05:49,680 Speaker 1: it's going back to its streaming name HBO Max. This 137 00:05:49,760 --> 00:05:52,440 Speaker 1: summer nothing like a bit of corporate backtracking after a 138 00:05:52,560 --> 00:05:53,480 Speaker 1: major misstep. 139 00:05:53,640 --> 00:05:56,080 Speaker 2: It's pretty simple. You don't mess with a quality brand 140 00:05:56,120 --> 00:05:57,960 Speaker 2: name that consumers are familiar with. 141 00:05:58,080 --> 00:05:59,839 Speaker 1: Aha, So what is the key learning here? 142 00:06:00,040 --> 00:06:03,520 Speaker 2: Brand familiarity is more than just recognizing a name. It's 143 00:06:03,520 --> 00:06:04,840 Speaker 2: a psychological shortcut. 144 00:06:05,160 --> 00:06:08,920 Speaker 1: When consumers hear the HBO name, they think about premium content. 145 00:06:09,160 --> 00:06:12,120 Speaker 2: The issue is that the pivot to Max diluted that 146 00:06:12,160 --> 00:06:13,320 Speaker 2: prestige and made. 147 00:06:13,080 --> 00:06:16,120 Speaker 1: The Max offering feel a lot more generic and Jazi boy. 148 00:06:16,240 --> 00:06:19,360 Speaker 2: When you're competing in a crowded streaming market with Netflix 149 00:06:19,400 --> 00:06:21,919 Speaker 2: and Prime and Disney Plus, you need to have a 150 00:06:21,960 --> 00:06:23,320 Speaker 2: big differentiator, and. 151 00:06:23,320 --> 00:06:25,640 Speaker 1: Let's just be honest, Max just wasn't doing it. 152 00:06:25,640 --> 00:06:28,279 Speaker 2: It doesn't help that Warner Brothers Discovery share price was 153 00:06:28,320 --> 00:06:30,560 Speaker 2: down fifteen percent since the start of this year either 154 00:06:30,640 --> 00:06:31,120 Speaker 2: Flux app. 155 00:06:31,120 --> 00:06:33,359 Speaker 1: If you're getting bills every month and wondering did that 156 00:06:33,440 --> 00:06:36,080 Speaker 1: go up since last year, well, the likelihood is that 157 00:06:36,160 --> 00:06:39,120 Speaker 1: it did because every year you are paying a loyalty 158 00:06:39,200 --> 00:06:41,760 Speaker 1: task on your electricity bill, on your gas bill, on 159 00:06:41,800 --> 00:06:43,919 Speaker 1: your internet bill as well. We cover it all in 160 00:06:43,920 --> 00:06:46,640 Speaker 1: the Flux Academy, including a script that you can use 161 00:06:46,680 --> 00:06:49,160 Speaker 1: to negotiate to get a better deal with your providers. 162 00:06:49,160 --> 00:06:51,000 Speaker 1: To make sure to download the Flux app and check 163 00:06:51,000 --> 00:06:52,120 Speaker 1: out the Academy this month. 164 00:06:52,120 --> 00:06:56,440 Speaker 2: Thanks for listening, and we'll see you on Wednesday.