Speaker 1: This is what the Flux I'm brandan, I'm justin and
Speaker 1: at Wednesday, eleventh of June.
Speaker 2: Does await the cost of your strong skinny latte is
Speaker 2: said to increase. We're talking about the perfect storm in
Speaker 2: a coffee cup. Falling supply, surging demand and stubborn the inflation.
Speaker 2: In fact, I'm expecting at Australia's medium coffee prices need
Speaker 2: to increase to between eight and twelve bucks per cup
Speaker 2: to make it fible for cafes.
Speaker 1: All right, I'm never leaving the house again, no box. Sam.
Speaker 1: Speaking of saving money so you can afford to have
Speaker 1: a coffee, have you checked out the Flux budgeting tool.
Speaker 1: It is the greatest way to track all of your
Speaker 1: spending and saving in the one place. It shows you
Speaker 1: categories of where you spend. It shows you what you
Speaker 1: spent last month. So if you're looking to save some money,
Speaker 1: you can spend eight to twelve dollars on a cup
Speaker 1: of coffee. Make sure to check the budgeting tool in
Speaker 1: the Flux out at flex Am. Also, we're gonna be
Speaker 1: taking off a few weeks from the pod as of
Speaker 1: next week, so Friday will be the last episode of
Speaker 1: June and we'll be returning on the ninth of July.
Speaker 2: Three full stories today. Juzzy Boy, let's do it for
Speaker 2: our first. After Pay and all other buy now, pay
Speaker 2: later lenders just got slapped with the same laws as
Speaker 2: credit card lenders and that means tighter lending criteria.
Speaker 1: Did buy now pay latter just graduate from rebellious team
Speaker 1: to rule following out alp man? What is happening here?
Speaker 1: All right?
Speaker 2: So after Pay is the buy now, pay later that
Speaker 2: hit the scenes in twenty fourteen.
Speaker 1: And they man, you'd be familiar with its pay in
Speaker 1: forour model where revolutionized how millions of Australians paid for
Speaker 1: clothes and beauty treatments and even flights.
Speaker 2: In fact, after they listed on the ASX in twenty
Speaker 2: sixteen at a one hundred and fifty million dollar market cap, and.
Speaker 1: It grew so rapidly that it was officially acquired in
Speaker 1: twenty twenty two the thirty nine billion dollars by Block
Speaker 1: and Juzzy Boy.
Speaker 2: Well after Pay may have capped out on its hyper
Speaker 2: growth in Australia, it keeps growing overseas.
Speaker 1: Yet after Pay processed over fifty billion dollars worth of
Speaker 1: sales last year, which is more than double what they
Speaker 1: did just three years ago.
Speaker 2: But Juzzy Boy from yesterday, all buy now, pay later
Speaker 2: providers in Australia will need to start collecting income and
Speaker 2: expense information so.
Speaker 1: That they can assess whether the loan is suitable for
Speaker 1: the applicant.
Speaker 2: Just like traditional credit providers. And while this gives some
Speaker 2: more legitimacy to bind our pay later, it also limits
Speaker 2: after Pay's ability to bypass lending laws.
Speaker 1: Yep, So what is the key learning here?
Speaker 2: When regulation lags behind innovation, the new innovative players really thrive,
Speaker 2: but once.
Speaker 1: The regulation catches up, only the strongest will survive.
Speaker 2: We know that after Pay was able to supercharge its
Speaker 2: growth because it didn't have to play by the same
Speaker 2: strict rules as banks and credit card providers.
Speaker 1: No credit checks, no responsible lending obligations, and it meant that.
Speaker 2: They could scale quickly without the red tape that others face.
Speaker 1: But now be Man, the new rules bring bind our
Speaker 1: pay lated players like after Pay under the same regulatory
Speaker 1: umbrella as other credit providers.
Speaker 2: But Joe Boy, thankfully for after Pay Australia has become
Speaker 2: a much smaller fraction of its entire business.
Speaker 1: In fact, a man after pay has around three and
Speaker 1: a half million customers in Australia.
Speaker 2: And twenty four million customers globally, so be man.
Speaker 1: The real test now is whether after pay can keep
Speaker 1: its edge when the playing field is finally.
Speaker 2: Level, and whether Australia even matters to after pay and
Speaker 2: Block anymore, or our second story.
Speaker 1: Apple has announced slick new updates at its developer conference,
Speaker 1: but it has kicked the SII AI overhaul further down
Speaker 1: the road.
Speaker 2: I got sucked into buying the latest iPhone for its AI,
Speaker 2: but I'm stuck with Siri.
Speaker 1: Tell me more. As Apple's founded in nineteen seventy six,
Speaker 1: it's now the world's largest company by market count.
Speaker 2: Thanks to it's very shalick products like the iPhone, mac
Speaker 2: Apple Watch, and the Man.
Speaker 1: Each year, Apple has its big nerd conference called Worldwide
Speaker 1: Developers Conference or WWDC, and at.
Speaker 2: This nerd conference, Apple announces many of its new features
Speaker 2: and products for the year ahead.
Speaker 1: One of the big changes is that Apple won't be
Speaker 1: calling its mac os updates things like Yosemite or Mountain
Speaker 1: Lion or Big sur anymore.
Speaker 2: Norp It'll be named in line with the year it
Speaker 2: was released, except it's one year ahead, so this year's
Speaker 2: update will be called iOS twenty six mac OS twenty six.
Speaker 1: How futuristic. But then, man, I do remember last year
Speaker 1: Apple promised some big, big improvements to the AI in iPhones.
Speaker 2: It did, but despite the big build up last year,
Speaker 2: Apple hyped AI powered Siri still is not ready.
Speaker 1: Apparently, quality issues have held about yep.
Speaker 2: Apple's internal tests basically showed that Siri only worked properly
Speaker 2: two thirds of the time. But even worse, Apple hasn't
Speaker 2: even committed to a release date anymore because it wants
Speaker 2: to perfect the product before release.
Speaker 1: So what is the key learning here? In tech?
Speaker 2: Being too early can be costly, but being too late
Speaker 2: can be fatal.
Speaker 1: Man, we know that Apple has long been known for
Speaker 1: its patients in product development.
Speaker 2: It didn't launch the first smartphones or the smart watch,
Speaker 2: but when it does enter a market, it tends to
Speaker 2: reshape it.
Speaker 1: In fact, the man when Apple released the iPhone, it
Speaker 1: totally Squashednokia and BlackBerry.
Speaker 2: In two thousand and five, Apple didn't even exist in
Speaker 2: the mobile phone market.
Speaker 1: Now it has nearly twenty percent of market share, with
Speaker 1: many many more competitive plays in the market too.
Speaker 2: And that's the benefit of a strategic delay.
Speaker 1: You get time to refine, observe competitors, and deliver something
Speaker 1: more polished.
Speaker 2: But the way, if Apple waits too long on Siri
Speaker 2: and AI integrations, it may risk losing out for the
Speaker 2: long term. For our third and final story, Warner Brothers
Speaker 2: Discovery is splitting into two companies, one for streaming, one
Speaker 2: for old school TV so that they can better compete Warner.
Speaker 1: Brother's Discovery, taking a page out of the corporate breakup
Speaker 1: playbook B Man, So tell me more? All right? So,
Speaker 1: Warner Bros.
Speaker 2: Discovery formed in twenty twenty two after a forty three
Speaker 2: billion dollar mega merger between Warner Media and Discovery.
Speaker 1: Fun fact of your b Man. That merger came with
Speaker 1: a whopping fifty billion US dollars in depth and josep.
Speaker 2: Wait, while Warner Brothers Discovery has already chipped away twenty bill,
Speaker 2: there's still a long way to go.
Speaker 1: And now Warner Brothers Discovery has announced it's splitting into
Speaker 1: two separately listed public companies.
Speaker 2: So merged two companies in twenty twenty two, and now
Speaker 2: is splitting up the merged company into a different slute.
Speaker 1: One will house its streaming and film studios.
Speaker 2: Think HBO, Warner Brothers Pictures, DC Studios.
Speaker 1: And the other will keep its TV networks like CNN,
Speaker 1: TNT Sports, and Discovery Bust. It will also keep some
Speaker 1: digital assets, though, like Bleacher Report and Discovery's streaming service
Speaker 1: Discovery Plus and.
Speaker 2: Does It Wait, and most of the debt will sit
Speaker 2: with the t V networks business.
Speaker 1: It's all part of the corporate split up to help
Speaker 1: investors know what they're getting with each part of the business.
Speaker 1: So what is the key learning here? A corporate spin
Speaker 1: off is when a company separates part of its operations
Speaker 1: into a new, independent business.
Speaker 2: Shareholders of the parent company typically received shares in both
Speaker 2: new entities. In Warner Brothers Discoveries case, the split separates
Speaker 2: the fast growing content art from the slower moving TV business.
Speaker 1: You can back the streaming upside without worrying about the
Speaker 1: TV decline.
Speaker 2: And Warner Brothers Discovery isn't the first media giant to
Speaker 2: pull the old split to survive maneuver.
Speaker 1: Nope, remember when Fox Corp. And twenty first Century Fox
Speaker 1: did it in twenty nineteen.
Speaker 2: Viacom split into Viacom and CBS back in two thousand
Speaker 2: and five and then re merged in twenty nineteen when
Speaker 2: it became paramount global savy man.
Speaker 1: This is just a natural case of emerging the merging
Speaker 1: buck dam. Just a little remind aut we'll be taking
Speaker 1: a break from early next week and we'll be back
Speaker 1: on the pod on July nine.
Speaker 2: Thanks for listening and we'll see you on Friday.