1 00:00:05,160 --> 00:00:07,880 Speaker 1: This is what the Flux I'm brandan, I'm justin and 2 00:00:07,960 --> 00:00:09,680 Speaker 1: at Wednesday, eleventh of June. 3 00:00:09,440 --> 00:00:11,720 Speaker 2: Does await the cost of your strong skinny latte is 4 00:00:11,720 --> 00:00:14,360 Speaker 2: said to increase. We're talking about the perfect storm in 5 00:00:14,400 --> 00:00:18,520 Speaker 2: a coffee cup. Falling supply, surging demand and stubborn the inflation. 6 00:00:19,040 --> 00:00:23,440 Speaker 2: In fact, I'm expecting at Australia's medium coffee prices need 7 00:00:23,480 --> 00:00:26,600 Speaker 2: to increase to between eight and twelve bucks per cup 8 00:00:27,760 --> 00:00:30,200 Speaker 2: to make it fible for cafes. 9 00:00:30,200 --> 00:00:32,279 Speaker 1: All right, I'm never leaving the house again, no box. Sam. 10 00:00:32,600 --> 00:00:34,680 Speaker 1: Speaking of saving money so you can afford to have 11 00:00:34,720 --> 00:00:36,920 Speaker 1: a coffee, have you checked out the Flux budgeting tool. 12 00:00:37,000 --> 00:00:38,559 Speaker 1: It is the greatest way to track all of your 13 00:00:38,640 --> 00:00:41,040 Speaker 1: spending and saving in the one place. It shows you 14 00:00:41,120 --> 00:00:42,920 Speaker 1: categories of where you spend. It shows you what you 15 00:00:42,960 --> 00:00:45,240 Speaker 1: spent last month. So if you're looking to save some money, 16 00:00:45,280 --> 00:00:47,000 Speaker 1: you can spend eight to twelve dollars on a cup 17 00:00:47,040 --> 00:00:49,600 Speaker 1: of coffee. Make sure to check the budgeting tool in 18 00:00:49,600 --> 00:00:51,560 Speaker 1: the Flux out at flex Am. Also, we're gonna be 19 00:00:51,600 --> 00:00:53,680 Speaker 1: taking off a few weeks from the pod as of 20 00:00:53,720 --> 00:00:56,120 Speaker 1: next week, so Friday will be the last episode of 21 00:00:56,240 --> 00:00:58,840 Speaker 1: June and we'll be returning on the ninth of July. 22 00:00:59,080 --> 00:01:02,280 Speaker 2: Three full stories today. Juzzy Boy, let's do it for 23 00:01:02,440 --> 00:01:04,960 Speaker 2: our first. After Pay and all other buy now, pay 24 00:01:05,040 --> 00:01:08,440 Speaker 2: later lenders just got slapped with the same laws as 25 00:01:08,480 --> 00:01:11,959 Speaker 2: credit card lenders and that means tighter lending criteria. 26 00:01:12,080 --> 00:01:14,720 Speaker 1: Did buy now pay latter just graduate from rebellious team 27 00:01:14,920 --> 00:01:17,600 Speaker 1: to rule following out alp man? What is happening here? 28 00:01:17,640 --> 00:01:17,959 Speaker 1: All right? 29 00:01:18,000 --> 00:01:19,880 Speaker 2: So after Pay is the buy now, pay later that 30 00:01:20,000 --> 00:01:22,160 Speaker 2: hit the scenes in twenty fourteen. 31 00:01:21,800 --> 00:01:23,480 Speaker 1: And they man, you'd be familiar with its pay in 32 00:01:23,480 --> 00:01:26,880 Speaker 1: forour model where revolutionized how millions of Australians paid for 33 00:01:26,959 --> 00:01:29,440 Speaker 1: clothes and beauty treatments and even flights. 34 00:01:29,560 --> 00:01:31,840 Speaker 2: In fact, after they listed on the ASX in twenty 35 00:01:31,920 --> 00:01:35,800 Speaker 2: sixteen at a one hundred and fifty million dollar market cap, and. 36 00:01:35,760 --> 00:01:38,200 Speaker 1: It grew so rapidly that it was officially acquired in 37 00:01:38,240 --> 00:01:41,520 Speaker 1: twenty twenty two the thirty nine billion dollars by Block 38 00:01:41,520 --> 00:01:42,039 Speaker 1: and Juzzy Boy. 39 00:01:42,080 --> 00:01:44,200 Speaker 2: Well after Pay may have capped out on its hyper 40 00:01:44,200 --> 00:01:46,319 Speaker 2: growth in Australia, it keeps growing overseas. 41 00:01:46,360 --> 00:01:49,080 Speaker 1: Yet after Pay processed over fifty billion dollars worth of 42 00:01:49,080 --> 00:01:51,200 Speaker 1: sales last year, which is more than double what they 43 00:01:51,200 --> 00:01:52,400 Speaker 1: did just three years ago. 44 00:01:52,440 --> 00:01:54,960 Speaker 2: But Juzzy Boy from yesterday, all buy now, pay later 45 00:01:55,040 --> 00:01:57,640 Speaker 2: providers in Australia will need to start collecting income and 46 00:01:57,680 --> 00:01:58,880 Speaker 2: expense information so. 47 00:01:58,840 --> 00:02:01,320 Speaker 1: That they can assess whether the loan is suitable for 48 00:02:01,360 --> 00:02:02,440 Speaker 1: the applicant. 49 00:02:02,160 --> 00:02:05,040 Speaker 2: Just like traditional credit providers. And while this gives some 50 00:02:05,200 --> 00:02:08,359 Speaker 2: more legitimacy to bind our pay later, it also limits 51 00:02:08,400 --> 00:02:11,040 Speaker 2: after Pay's ability to bypass lending laws. 52 00:02:11,160 --> 00:02:12,760 Speaker 1: Yep, So what is the key learning here? 53 00:02:12,840 --> 00:02:17,320 Speaker 2: When regulation lags behind innovation, the new innovative players really thrive, 54 00:02:17,400 --> 00:02:17,920 Speaker 2: but once. 55 00:02:17,760 --> 00:02:20,640 Speaker 1: The regulation catches up, only the strongest will survive. 56 00:02:20,760 --> 00:02:22,840 Speaker 2: We know that after Pay was able to supercharge its 57 00:02:22,840 --> 00:02:25,160 Speaker 2: growth because it didn't have to play by the same 58 00:02:25,200 --> 00:02:27,760 Speaker 2: strict rules as banks and credit card providers. 59 00:02:27,880 --> 00:02:31,600 Speaker 1: No credit checks, no responsible lending obligations, and it meant that. 60 00:02:31,520 --> 00:02:34,600 Speaker 2: They could scale quickly without the red tape that others face. 61 00:02:34,639 --> 00:02:36,600 Speaker 1: But now be Man, the new rules bring bind our 62 00:02:36,639 --> 00:02:39,680 Speaker 1: pay lated players like after Pay under the same regulatory 63 00:02:39,760 --> 00:02:41,440 Speaker 1: umbrella as other credit providers. 64 00:02:41,520 --> 00:02:44,640 Speaker 2: But Joe Boy, thankfully for after Pay Australia has become 65 00:02:44,760 --> 00:02:47,200 Speaker 2: a much smaller fraction of its entire business. 66 00:02:47,240 --> 00:02:49,000 Speaker 1: In fact, a man after pay has around three and 67 00:02:49,040 --> 00:02:51,239 Speaker 1: a half million customers in Australia. 68 00:02:50,800 --> 00:02:53,639 Speaker 2: And twenty four million customers globally, so be man. 69 00:02:53,760 --> 00:02:55,720 Speaker 1: The real test now is whether after pay can keep 70 00:02:55,720 --> 00:02:58,200 Speaker 1: its edge when the playing field is finally. 71 00:02:57,880 --> 00:03:00,440 Speaker 2: Level, and whether Australia even matters to after pay and 72 00:03:00,520 --> 00:03:02,400 Speaker 2: Block anymore, or our second story. 73 00:03:02,440 --> 00:03:05,959 Speaker 1: Apple has announced slick new updates at its developer conference, 74 00:03:06,080 --> 00:03:09,120 Speaker 1: but it has kicked the SII AI overhaul further down 75 00:03:09,160 --> 00:03:09,520 Speaker 1: the road. 76 00:03:09,639 --> 00:03:12,000 Speaker 2: I got sucked into buying the latest iPhone for its AI, 77 00:03:12,160 --> 00:03:13,760 Speaker 2: but I'm stuck with Siri. 78 00:03:14,280 --> 00:03:16,720 Speaker 1: Tell me more. As Apple's founded in nineteen seventy six, 79 00:03:16,760 --> 00:03:19,400 Speaker 1: it's now the world's largest company by market count. 80 00:03:19,240 --> 00:03:22,280 Speaker 2: Thanks to it's very shalick products like the iPhone, mac 81 00:03:22,320 --> 00:03:23,600 Speaker 2: Apple Watch, and the Man. 82 00:03:23,639 --> 00:03:26,960 Speaker 1: Each year, Apple has its big nerd conference called Worldwide 83 00:03:27,000 --> 00:03:30,079 Speaker 1: Developers Conference or WWDC, and at. 84 00:03:29,919 --> 00:03:33,160 Speaker 2: This nerd conference, Apple announces many of its new features 85 00:03:33,160 --> 00:03:34,400 Speaker 2: and products for the year ahead. 86 00:03:34,440 --> 00:03:36,200 Speaker 1: One of the big changes is that Apple won't be 87 00:03:36,240 --> 00:03:39,520 Speaker 1: calling its mac os updates things like Yosemite or Mountain 88 00:03:39,520 --> 00:03:41,320 Speaker 1: Lion or Big sur anymore. 89 00:03:41,120 --> 00:03:43,800 Speaker 2: Norp It'll be named in line with the year it 90 00:03:43,920 --> 00:03:47,520 Speaker 2: was released, except it's one year ahead, so this year's 91 00:03:47,600 --> 00:03:51,000 Speaker 2: update will be called iOS twenty six mac OS twenty six. 92 00:03:51,080 --> 00:03:53,560 Speaker 1: How futuristic. But then, man, I do remember last year 93 00:03:53,600 --> 00:03:57,280 Speaker 1: Apple promised some big, big improvements to the AI in iPhones. 94 00:03:57,320 --> 00:03:59,680 Speaker 2: It did, but despite the big build up last year, 95 00:03:59,680 --> 00:04:03,440 Speaker 2: Apple hyped AI powered Siri still is not ready. 96 00:04:03,560 --> 00:04:05,640 Speaker 1: Apparently, quality issues have held about yep. 97 00:04:05,680 --> 00:04:09,080 Speaker 2: Apple's internal tests basically showed that Siri only worked properly 98 00:04:09,120 --> 00:04:11,880 Speaker 2: two thirds of the time. But even worse, Apple hasn't 99 00:04:11,880 --> 00:04:14,280 Speaker 2: even committed to a release date anymore because it wants 100 00:04:14,320 --> 00:04:16,359 Speaker 2: to perfect the product before release. 101 00:04:16,440 --> 00:04:18,159 Speaker 1: So what is the key learning here? In tech? 102 00:04:18,400 --> 00:04:20,760 Speaker 2: Being too early can be costly, but being too late 103 00:04:20,920 --> 00:04:22,080 Speaker 2: can be fatal. 104 00:04:22,279 --> 00:04:24,479 Speaker 1: Man, we know that Apple has long been known for 105 00:04:24,520 --> 00:04:26,159 Speaker 1: its patients in product development. 106 00:04:26,200 --> 00:04:28,479 Speaker 2: It didn't launch the first smartphones or the smart watch, 107 00:04:28,480 --> 00:04:30,440 Speaker 2: but when it does enter a market, it tends to 108 00:04:30,480 --> 00:04:31,000 Speaker 2: reshape it. 109 00:04:31,000 --> 00:04:33,000 Speaker 1: In fact, the man when Apple released the iPhone, it 110 00:04:33,120 --> 00:04:35,200 Speaker 1: totally Squashednokia and BlackBerry. 111 00:04:35,240 --> 00:04:37,279 Speaker 2: In two thousand and five, Apple didn't even exist in 112 00:04:37,279 --> 00:04:38,279 Speaker 2: the mobile phone market. 113 00:04:38,360 --> 00:04:40,440 Speaker 1: Now it has nearly twenty percent of market share, with 114 00:04:40,640 --> 00:04:43,039 Speaker 1: many many more competitive plays in the market too. 115 00:04:43,120 --> 00:04:45,120 Speaker 2: And that's the benefit of a strategic delay. 116 00:04:45,200 --> 00:04:48,800 Speaker 1: You get time to refine, observe competitors, and deliver something 117 00:04:49,040 --> 00:04:49,799 Speaker 1: more polished. 118 00:04:49,880 --> 00:04:52,400 Speaker 2: But the way, if Apple waits too long on Siri 119 00:04:52,480 --> 00:04:55,800 Speaker 2: and AI integrations, it may risk losing out for the 120 00:04:55,839 --> 00:04:59,240 Speaker 2: long term. For our third and final story, Warner Brothers 121 00:04:59,240 --> 00:05:02,760 Speaker 2: Discovery is splitting into two companies, one for streaming, one 122 00:05:02,760 --> 00:05:05,719 Speaker 2: for old school TV so that they can better compete Warner. 123 00:05:05,520 --> 00:05:07,960 Speaker 1: Brother's Discovery, taking a page out of the corporate breakup 124 00:05:07,960 --> 00:05:09,919 Speaker 1: playbook B Man, So tell me more? All right? So, 125 00:05:10,040 --> 00:05:10,520 Speaker 1: Warner Bros. 126 00:05:10,600 --> 00:05:13,760 Speaker 2: Discovery formed in twenty twenty two after a forty three 127 00:05:13,839 --> 00:05:17,520 Speaker 2: billion dollar mega merger between Warner Media and Discovery. 128 00:05:17,560 --> 00:05:19,680 Speaker 1: Fun fact of your b Man. That merger came with 129 00:05:19,720 --> 00:05:22,760 Speaker 1: a whopping fifty billion US dollars in depth and josep. 130 00:05:22,440 --> 00:05:26,240 Speaker 2: Wait, while Warner Brothers Discovery has already chipped away twenty bill, 131 00:05:26,360 --> 00:05:27,800 Speaker 2: there's still a long way to go. 132 00:05:27,920 --> 00:05:31,000 Speaker 1: And now Warner Brothers Discovery has announced it's splitting into 133 00:05:31,040 --> 00:05:33,440 Speaker 1: two separately listed public companies. 134 00:05:33,560 --> 00:05:35,880 Speaker 2: So merged two companies in twenty twenty two, and now 135 00:05:36,000 --> 00:05:38,760 Speaker 2: is splitting up the merged company into a different slute. 136 00:05:39,160 --> 00:05:41,640 Speaker 1: One will house its streaming and film studios. 137 00:05:41,760 --> 00:05:45,599 Speaker 2: Think HBO, Warner Brothers Pictures, DC Studios. 138 00:05:45,040 --> 00:05:47,640 Speaker 1: And the other will keep its TV networks like CNN, 139 00:05:47,839 --> 00:05:51,880 Speaker 1: TNT Sports, and Discovery Bust. It will also keep some 140 00:05:52,000 --> 00:05:56,080 Speaker 1: digital assets, though, like Bleacher Report and Discovery's streaming service 141 00:05:56,200 --> 00:05:57,440 Speaker 1: Discovery Plus and. 142 00:05:57,560 --> 00:05:59,479 Speaker 2: Does It Wait, and most of the debt will sit 143 00:05:59,560 --> 00:06:01,320 Speaker 2: with the t V networks business. 144 00:06:01,400 --> 00:06:03,480 Speaker 1: It's all part of the corporate split up to help 145 00:06:03,520 --> 00:06:06,760 Speaker 1: investors know what they're getting with each part of the business. 146 00:06:06,800 --> 00:06:08,880 Speaker 1: So what is the key learning here? A corporate spin 147 00:06:08,920 --> 00:06:11,520 Speaker 1: off is when a company separates part of its operations 148 00:06:11,560 --> 00:06:13,400 Speaker 1: into a new, independent business. 149 00:06:13,520 --> 00:06:17,040 Speaker 2: Shareholders of the parent company typically received shares in both 150 00:06:17,320 --> 00:06:21,120 Speaker 2: new entities. In Warner Brothers Discoveries case, the split separates 151 00:06:21,160 --> 00:06:24,560 Speaker 2: the fast growing content art from the slower moving TV business. 152 00:06:24,680 --> 00:06:27,640 Speaker 1: You can back the streaming upside without worrying about the 153 00:06:27,680 --> 00:06:28,560 Speaker 1: TV decline. 154 00:06:28,600 --> 00:06:31,440 Speaker 2: And Warner Brothers Discovery isn't the first media giant to 155 00:06:31,520 --> 00:06:33,720 Speaker 2: pull the old split to survive maneuver. 156 00:06:33,920 --> 00:06:36,640 Speaker 1: Nope, remember when Fox Corp. And twenty first Century Fox 157 00:06:36,640 --> 00:06:37,720 Speaker 1: did it in twenty nineteen. 158 00:06:37,920 --> 00:06:40,799 Speaker 2: Viacom split into Viacom and CBS back in two thousand 159 00:06:40,800 --> 00:06:43,440 Speaker 2: and five and then re merged in twenty nineteen when 160 00:06:43,480 --> 00:06:45,800 Speaker 2: it became paramount global savy man. 161 00:06:45,880 --> 00:06:48,720 Speaker 1: This is just a natural case of emerging the merging 162 00:06:48,880 --> 00:06:50,919 Speaker 1: buck dam. Just a little remind aut we'll be taking 163 00:06:50,920 --> 00:06:52,800 Speaker 1: a break from early next week and we'll be back 164 00:06:52,839 --> 00:06:54,320 Speaker 1: on the pod on July nine. 165 00:06:54,360 --> 00:06:56,680 Speaker 2: Thanks for listening and we'll see you on Friday.