1 00:00:05,120 --> 00:00:06,560 Speaker 1: This is what the flux. 2 00:00:06,640 --> 00:00:09,400 Speaker 2: I'm Brett and I'm justin as Friday, the twenty sixth 3 00:00:09,400 --> 00:00:12,200 Speaker 2: of December Fox Dam twenty twenty five was a tough 4 00:00:12,280 --> 00:00:15,320 Speaker 2: year for media and telco in Australia. Big name companies 5 00:00:15,360 --> 00:00:17,919 Speaker 2: were forced to merge, cut staff, as well as paying 6 00:00:17,960 --> 00:00:20,880 Speaker 2: some pretty hefty fines just to say competitive. At the 7 00:00:20,880 --> 00:00:23,919 Speaker 2: same time they're trying to keep up with global giants. 8 00:00:24,079 --> 00:00:27,280 Speaker 2: So today we're recapping the big stories that defined a 9 00:00:27,400 --> 00:00:30,720 Speaker 2: pretty brutal year for the media and telco industries. 10 00:00:30,880 --> 00:00:33,640 Speaker 1: Three marvelous stories today, Juzzy boy, let's do it for 11 00:00:33,680 --> 00:00:37,000 Speaker 1: our first. Seven West Media and Southern Cross Media have 12 00:00:37,080 --> 00:00:39,920 Speaker 1: announced plans to merge into a four hundred and fifteen 13 00:00:40,040 --> 00:00:41,400 Speaker 1: million dollar content machine. 14 00:00:41,440 --> 00:00:43,960 Speaker 2: These two companies only worth four hundred and fifteen mel together. 15 00:00:44,320 --> 00:00:46,800 Speaker 2: How things have changed the media landscape? Yeah, we wore 16 00:00:46,800 --> 00:00:47,120 Speaker 2: all right. 17 00:00:47,159 --> 00:00:50,120 Speaker 1: So seven West Media is one of Australia's largest free 18 00:00:50,120 --> 00:00:51,800 Speaker 1: to air TV and media companies. 19 00:00:51,800 --> 00:00:54,200 Speaker 2: We're talking the owner of Channel seven, The West Australian, 20 00:00:54,240 --> 00:00:55,160 Speaker 2: the Sunday Times. 21 00:00:55,280 --> 00:00:58,080 Speaker 1: We're also talking the owner of the broadcast rights to 22 00:00:58,120 --> 00:01:00,520 Speaker 1: the AFL and Cricket and of course Mike Rules in 23 00:01:00,560 --> 00:01:03,480 Speaker 1: Homanway two yep, can't forget that it also has seven two, 24 00:01:03,520 --> 00:01:06,720 Speaker 1: seven Mates, seven Bravo streaming platform, seven plus all in 25 00:01:06,760 --> 00:01:07,479 Speaker 1: its stable and. 26 00:01:07,440 --> 00:01:09,920 Speaker 2: Southern Cross well, they're the owners of hit network like 27 00:01:09,959 --> 00:01:12,320 Speaker 2: FOXFM as well as Triple Apt now Daziboy. 28 00:01:12,400 --> 00:01:14,800 Speaker 1: We know that Southern Cross Media has been keen to sell. 29 00:01:15,000 --> 00:01:17,440 Speaker 2: They even had serious talks between Southern Cross and their 30 00:01:17,520 --> 00:01:19,039 Speaker 2: arch rival Arn Media. 31 00:01:19,080 --> 00:01:22,040 Speaker 1: But now seven West Media has swooped in announcing plans 32 00:01:22,040 --> 00:01:23,520 Speaker 1: to merge with Southern Cross Media. 33 00:01:23,560 --> 00:01:25,760 Speaker 2: Olf Stewart would be flame and impressed with this. 34 00:01:26,680 --> 00:01:28,640 Speaker 1: As part of this deal, it would mean that seven 35 00:01:28,680 --> 00:01:32,160 Speaker 1: shareholders own auty nine point nine percent of the combined company. 36 00:01:32,040 --> 00:01:34,200 Speaker 2: Southern Cross share rows get fifty point one percent of 37 00:01:34,240 --> 00:01:35,120 Speaker 2: the company, and Jaziboid. 38 00:01:35,160 --> 00:01:37,440 Speaker 1: This seems to be a necessary step for both companies 39 00:01:37,480 --> 00:01:39,679 Speaker 1: who are battle in the new media landscape. 40 00:01:39,760 --> 00:01:41,600 Speaker 2: So true, So what is the key learning here? 41 00:01:41,720 --> 00:01:44,720 Speaker 1: Media firms are being forced to consolidate to protect their 42 00:01:44,760 --> 00:01:46,240 Speaker 1: margins and their relevance. 43 00:01:46,280 --> 00:01:49,360 Speaker 2: You see, bee Man, the old advertising model is under siege. 44 00:01:49,560 --> 00:01:53,240 Speaker 1: Yeah, Viewers have split across streaming platforms, social media, podcasts, 45 00:01:53,280 --> 00:01:54,640 Speaker 1: and traditional TV and radio. 46 00:01:54,720 --> 00:01:57,280 Speaker 2: In fact, the commercial broadcasters have seen ad spend lumber 47 00:01:57,360 --> 00:01:58,360 Speaker 2: since the early two thousand. 48 00:01:58,480 --> 00:02:01,400 Speaker 1: Yeah, between the Channel seven nine and ten, they've seen 49 00:02:01,440 --> 00:02:04,160 Speaker 1: their share of Australian ads span fall from forty three 50 00:02:04,200 --> 00:02:06,680 Speaker 1: percent to seventeen percent. And that's between two thousand and 51 00:02:06,680 --> 00:02:08,280 Speaker 1: six and twenty twenty two, and. 52 00:02:08,240 --> 00:02:10,320 Speaker 2: It continues to decline more and more since then. 53 00:02:10,400 --> 00:02:12,960 Speaker 1: That means AD dollars are spread thinner and harder to 54 00:02:13,000 --> 00:02:13,320 Speaker 1: lock in. 55 00:02:13,360 --> 00:02:15,800 Speaker 2: Yeah, So by merging seven West and Southern Cross can 56 00:02:15,840 --> 00:02:18,480 Speaker 2: bundle their offerings together, and so it is one juicy 57 00:02:18,560 --> 00:02:20,160 Speaker 2: advertising package to advertisers. 58 00:02:20,200 --> 00:02:23,280 Speaker 1: You think ads across sports, on TV, talk radio shows, 59 00:02:23,320 --> 00:02:26,280 Speaker 1: regional news, digital masked heads all together and this. 60 00:02:26,280 --> 00:02:30,080 Speaker 2: Scale gives advertisers richer insights, who's watching, who's listening, who's 61 00:02:30,120 --> 00:02:31,119 Speaker 2: clicking and juz boy. 62 00:02:31,160 --> 00:02:34,160 Speaker 1: Clearly seven West has needed to act. Its profits are 63 00:02:34,200 --> 00:02:37,400 Speaker 1: down approximately sixty two percent in twenty twenty five compared 64 00:02:37,400 --> 00:02:38,200 Speaker 1: to the last year. 65 00:02:38,080 --> 00:02:40,560 Speaker 2: So both companies will be hoping at shareholders also see 66 00:02:40,560 --> 00:02:43,280 Speaker 2: the value in this deal, so they cannot only survive alone, 67 00:02:43,320 --> 00:02:44,720 Speaker 2: but hopefully arrive together. 68 00:02:44,800 --> 00:02:48,680 Speaker 1: For our second story, Optus has been slapped with a big, 69 00:02:49,000 --> 00:02:52,000 Speaker 1: big fine for four years of unethical sales conduct. 70 00:02:52,120 --> 00:02:54,880 Speaker 2: Another fine for optis be man tell me, what is 71 00:02:54,960 --> 00:02:56,400 Speaker 2: going on down at Olan. Yeah. 72 00:02:56,400 --> 00:02:58,760 Speaker 1: Well, Optis was found a back in nineteen ninety two, 73 00:02:58,960 --> 00:03:01,760 Speaker 1: is Australia's second live telco company and is becoming the 74 00:03:01,960 --> 00:03:03,360 Speaker 1: fine capital of Australia. 75 00:03:03,680 --> 00:03:06,359 Speaker 2: We're talking more than ten million ossies who use Optis 76 00:03:06,400 --> 00:03:08,720 Speaker 2: for phone and internet coverage and Jaziboy. 77 00:03:08,760 --> 00:03:11,640 Speaker 1: Since twenty eleven, Optus has been owned by the Singaporean 78 00:03:11,760 --> 00:03:12,799 Speaker 1: behemoth Sintel. 79 00:03:13,200 --> 00:03:15,200 Speaker 2: But over the last couple of years, Optis has developed 80 00:03:15,240 --> 00:03:16,840 Speaker 2: a bit of a reputation problem. 81 00:03:16,880 --> 00:03:19,320 Speaker 1: First the Mega cyber attack that leaked almost ten million 82 00:03:19,360 --> 00:03:20,799 Speaker 1: customer details. 83 00:03:20,320 --> 00:03:24,320 Speaker 2: Then a nationwide outage left people unable to call Triple zero, and. 84 00:03:24,240 --> 00:03:27,000 Speaker 1: Now the a Triple C has slapped opt Us with 85 00:03:27,040 --> 00:03:29,240 Speaker 1: a one hundred million dollar fine for another issue. 86 00:03:29,320 --> 00:03:32,959 Speaker 2: Yeah, Optus has admitted to inappropriate sales practices between twenty 87 00:03:33,080 --> 00:03:36,920 Speaker 2: nineteen and twenty twenty three that affected hundreds of vulnerable customers. 88 00:03:36,960 --> 00:03:39,600 Speaker 1: We're talking questionable debt collection practices. 89 00:03:39,640 --> 00:03:41,640 Speaker 2: We're talking misleading and deceptive conduct. 90 00:03:41,720 --> 00:03:44,160 Speaker 1: Yes, we're talking failing to explain the terms and conditions 91 00:03:44,160 --> 00:03:45,360 Speaker 1: of contracts. 92 00:03:44,840 --> 00:03:47,000 Speaker 2: And failing to conduct coverage checks. 93 00:03:47,080 --> 00:03:49,600 Speaker 1: Now, Jazzi boy. In some cases, people were even sold 94 00:03:49,600 --> 00:03:52,520 Speaker 1: plans when they lived in areas where Optus reception was 95 00:03:52,560 --> 00:03:53,240 Speaker 1: not available. 96 00:03:53,320 --> 00:03:55,600 Speaker 2: Wow, so it's no wonder the a Triple C slapped 97 00:03:55,640 --> 00:03:57,920 Speaker 2: opter Us with a big fine and he's now questioning 98 00:03:57,920 --> 00:04:01,520 Speaker 2: whether Optis deserves its golden ticket. It's carrier license. Oh 99 00:04:01,560 --> 00:04:03,200 Speaker 2: you went there, jazzy boy. So what is the key 100 00:04:03,240 --> 00:04:06,120 Speaker 2: learning here? A telco carrier license is a legal permit 101 00:04:06,160 --> 00:04:09,000 Speaker 2: that allows companies like OPTAs to build and operate telco 102 00:04:09,080 --> 00:04:10,280 Speaker 2: networks across Australia. 103 00:04:10,640 --> 00:04:14,160 Speaker 1: Currently, less than ten percent of Australian telcos have this license, which. 104 00:04:13,960 --> 00:04:16,160 Speaker 2: Gives opter some serious market power. 105 00:04:16,200 --> 00:04:19,040 Speaker 1: But having this license comes with responsibilities like. 106 00:04:19,000 --> 00:04:23,760 Speaker 2: Providing safe and reliable services, protecting customer data, supporting emergency calls, 107 00:04:23,839 --> 00:04:26,039 Speaker 2: and of course treating consumers fairly as well. 108 00:04:26,080 --> 00:04:28,040 Speaker 1: And it's pretty clear to see that Optus has been 109 00:04:28,200 --> 00:04:30,760 Speaker 1: falling short of these responsibilities recently. 110 00:04:30,360 --> 00:04:32,719 Speaker 2: And be Man, in the past we've seen companies lose 111 00:04:32,720 --> 00:04:35,359 Speaker 2: their licenses, like when The Star had its casino license 112 00:04:35,360 --> 00:04:38,400 Speaker 2: suspended by the new South Wales Independent Casino Commission and 113 00:04:38,400 --> 00:04:38,680 Speaker 2: this was. 114 00:04:38,680 --> 00:04:42,640 Speaker 1: A very heavy blow to their operations, their reputation, investor confidence. 115 00:04:42,760 --> 00:04:44,919 Speaker 2: So b Man Optus having their carrier license put to 116 00:04:45,000 --> 00:04:47,640 Speaker 2: question is pretty serious. Business, and you can bet your 117 00:04:47,640 --> 00:04:50,120 Speaker 2: bottom dollar they won't be taking this license for granted 118 00:04:50,240 --> 00:04:53,800 Speaker 2: for much longer. For our third and final story, Telstra 119 00:04:54,040 --> 00:04:57,120 Speaker 2: is planning another mass job cut of over five hundred 120 00:04:57,200 --> 00:04:59,680 Speaker 2: jobs as it pushes to hit its new twenty thirty 121 00:04:59,680 --> 00:05:02,680 Speaker 2: stratu with AI. We knew it was coming, b Man, 122 00:05:02,720 --> 00:05:04,960 Speaker 2: AI replacing human jobs, so tell me more. 123 00:05:05,040 --> 00:05:07,599 Speaker 1: Well. Telstra was founded in nineteen oh one, a little 124 00:05:07,600 --> 00:05:10,920 Speaker 1: earlier than AI was invented, and Telster remains Australia's largest 125 00:05:10,920 --> 00:05:11,719 Speaker 1: telco provider. 126 00:05:11,760 --> 00:05:14,080 Speaker 2: Get this, be Man. Telster provides more than twenty four 127 00:05:14,200 --> 00:05:16,599 Speaker 2: million retail services across Australia. 128 00:05:16,640 --> 00:05:20,080 Speaker 1: That'd be Ozzie's using Telstra to text to call doom 129 00:05:20,200 --> 00:05:21,520 Speaker 1: scroll on the Internet. 130 00:05:21,640 --> 00:05:24,680 Speaker 2: That is a pretty big responsibility, particularly the doom scrolling. 131 00:05:24,760 --> 00:05:27,080 Speaker 1: Yeah, that's why they employ about thirty one thousand full 132 00:05:27,080 --> 00:05:28,239 Speaker 1: time workers around the world. 133 00:05:28,279 --> 00:05:30,720 Speaker 2: So recently, b Man, Ulstra has been swinging the old 134 00:05:30,720 --> 00:05:31,440 Speaker 2: corporate Act. Well. 135 00:05:31,480 --> 00:05:34,480 Speaker 1: Last year, Telstra cut twenty eight hundred jobs to save 136 00:05:34,640 --> 00:05:36,880 Speaker 1: the company about three hundred and fifty million bucks. 137 00:05:36,880 --> 00:05:39,160 Speaker 2: It was all part of their T twenty five strategy 138 00:05:39,240 --> 00:05:41,240 Speaker 2: that was set years ago. But now be Man Telster 139 00:05:41,400 --> 00:05:44,800 Speaker 2: CEO has announced a new strategy called Connected Future thirty. 140 00:05:44,880 --> 00:05:46,400 Speaker 2: You have to have a buzzy name like that, you 141 00:05:46,440 --> 00:05:49,240 Speaker 2: can't not exactly and be Man. This new strategy aims 142 00:05:49,240 --> 00:05:51,960 Speaker 2: to raise Telster's and your returns from eight percent to 143 00:05:52,040 --> 00:05:53,480 Speaker 2: ten percent by twenty thirty. 144 00:05:53,520 --> 00:05:55,960 Speaker 1: Step one, they're going to cut another five hundred. 145 00:05:55,760 --> 00:06:00,360 Speaker 2: Jobs without supposedly dropping connectivity or customer service standards. How 146 00:06:00,400 --> 00:06:02,800 Speaker 2: do they plan to do this well, obviously by implementing 147 00:06:03,000 --> 00:06:04,359 Speaker 2: more AI in the business. 148 00:06:04,360 --> 00:06:05,960 Speaker 1: Interesting, So what is the key learning here? 149 00:06:06,000 --> 00:06:08,560 Speaker 2: The theory that AI would one day replace human workers 150 00:06:08,600 --> 00:06:11,320 Speaker 2: has been floating around for decades, but now we're starting 151 00:06:11,320 --> 00:06:13,400 Speaker 2: to see some real tangible examples. 152 00:06:13,480 --> 00:06:15,520 Speaker 1: Jasi Boyd this is one of the first examples of 153 00:06:15,560 --> 00:06:18,919 Speaker 1: a large Australian company to openly adopt AI as a 154 00:06:19,200 --> 00:06:20,680 Speaker 1: replacement for jobs. 155 00:06:20,400 --> 00:06:22,279 Speaker 2: And be Man This could just be the beginning. 156 00:06:22,279 --> 00:06:24,800 Speaker 1: According to a report from the Social Policy Group, up 157 00:06:24,800 --> 00:06:27,560 Speaker 1: to one in three Australian workers could be at risk 158 00:06:27,600 --> 00:06:29,960 Speaker 1: of job loss due to AI by twenty thirty. 159 00:06:29,720 --> 00:06:31,760 Speaker 2: And be man or companies tend to tiptoe around the 160 00:06:31,800 --> 00:06:34,880 Speaker 2: topic of AI to avoid public backlash. Shareholders seem to 161 00:06:34,920 --> 00:06:37,680 Speaker 2: have a very different outlook on the AI adoption. 162 00:06:37,440 --> 00:06:39,880 Speaker 1: As of this week. Telstra shares have jumped over twenty 163 00:06:39,880 --> 00:06:42,120 Speaker 1: one percent since the start of the year wow. 164 00:06:41,920 --> 00:06:43,800 Speaker 2: And over thirty percent over the past twelve. 165 00:06:43,600 --> 00:06:46,120 Speaker 1: Months, making it the tenth best performing company on the 166 00:06:46,160 --> 00:06:48,320 Speaker 1: ASEX and the best in the telco sector. 167 00:06:48,440 --> 00:06:50,680 Speaker 2: So be man. We're now entering the era where AI 168 00:06:50,760 --> 00:06:53,359 Speaker 2: isn't just theory, it's becoming a core part of some 169 00:06:53,480 --> 00:06:56,200 Speaker 2: major company strategies and FOXAM. That is a wrap on 170 00:06:56,240 --> 00:06:59,359 Speaker 2: the biggest media and tellco stories in Australia for twenty 171 00:06:59,400 --> 00:07:02,160 Speaker 2: twenty five, and this is our final pod of the year, 172 00:07:02,320 --> 00:07:04,440 Speaker 2: So a big thank you for being with us throughout 173 00:07:04,440 --> 00:07:07,200 Speaker 2: the year, listening to all the bigger stories, tuning into 174 00:07:07,240 --> 00:07:09,800 Speaker 2: the highs and the lows of twenty twenty five. We're 175 00:07:09,800 --> 00:07:12,360 Speaker 2: going to be taking a break until the nineteenth of January, 176 00:07:12,400 --> 00:07:14,720 Speaker 2: but we can't wait for a bigger and better twenty 177 00:07:14,720 --> 00:07:15,280 Speaker 2: twenty six.