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Speaker 1: This is what the flux. I'm Brett and I'm Justin

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Speaker 1: and it's Wednesday, the nineteenth of Mark.

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Speaker 2: The price of gold has topped three thousand US dollars

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Speaker 2: for the very first time.

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Speaker 1: And just wait.

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Speaker 2: We know that gold is considered a safe haven, so

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Speaker 2: it's no surprise that it's jumping right now. In fact,

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Speaker 2: gold hit a record high fourteen times since Trump took

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Speaker 2: office in January.

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Speaker 1: He's growing and growing and growing. Man. You know, I

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Speaker 1: got a puppy last year. And let me tell you

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Speaker 1: the cost of pet ownership. It's not cheap. Oh that's

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Speaker 1: why this week in the Flex app, we cover the

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Speaker 1: true cost of pet ownership, all the expenses you might

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Speaker 1: have as a poor parent. So if you're thinking of

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Speaker 1: getting a pet, sometime you see a fluxdap, make sure

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Speaker 1: to head to the Flex app and check it out.

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Speaker 2: Three cost saving stories today. Juzzy boy, let's do it

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Speaker 2: for our first Warner Brothers. Discovery is launching its streaming

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Speaker 2: platform Max in Australia this month, and we'll use nine

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Speaker 2: Entertainment to sell ads on its cheapest tier.

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Speaker 1: Out o the streaming platforms hitting up once again, d man,

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Speaker 1: So what is going on here?

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Speaker 2: Well, we've spoken a number of times about Warner Brothers

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Speaker 2: Discovery Juzzy Boy, and they're launching their Max streaming platform

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Speaker 2: in Australia.

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Speaker 1: The Max platform, previously called HBO Max, launched in twenty twenty.

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Speaker 2: And Max first flagged its entry into the Australian market

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Speaker 2: in September twenty twenty four when it warned Foxdell it

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Speaker 2: would be joinking it shows away.

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Speaker 1: Like Game of Thrones, The Last of Us and The

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Speaker 1: White and the White Lotus.

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Speaker 2: Where absolutely nothing has happened in season four so far.

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Speaker 1: Anyway, be Man Max will be launching in Australia at

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Speaker 1: the end of March with a number of tiers, including

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Speaker 1: the ads supported tier like Netflix.

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Speaker 2: Because we all love a tense House of the Dragon

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Speaker 2: battle scene interrupted by an ad for dishwashing liquid, but.

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Speaker 1: Be Man their new ad supported tier requires Max to

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Speaker 1: have a sales team on the ground to source local ads.

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Speaker 2: Right, wrong, Juzzy Boy, because Warner Brothers Discovery has partnered

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Speaker 2: with Nine Entertainment, who will sell the ads for the

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Speaker 2: ad supported tier of Max.

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Speaker 1: Which is called Max Basis, and as.

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Speaker 2: A result, Nine will take a cut from the ads

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Speaker 2: it sells for.

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Speaker 1: Max and be Man selling another network AD space is

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Speaker 1: a new source of revenue for Nine. Possibly it won't

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Speaker 1: be for too long. So what is the key learning here?

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Speaker 2: When a business is building out a new feature, there's

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Speaker 2: one key dilemma to build things in house or do

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Speaker 2: we outsource it to the professional.

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Speaker 1: Saban Man for Warner Brothers Discovery, outsourcing to nine means

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Speaker 1: it won't have quite as much control over its new

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Speaker 1: AD system. That is bad, But outsourcing a project also

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Speaker 1: has major benefits.

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Speaker 2: You don't need to make the initial large investment.

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Speaker 1: That is good.

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Speaker 2: But the key is really that you can learn from

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Speaker 2: someone who already knows what they're doing, Black nine, who's

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Speaker 2: been selling ads for squillions of years, and then build

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Speaker 2: it yourself later with all those inside. And this is

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Speaker 2: exactly the same path that Netflix took when it launched

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Speaker 2: its own AD supported model. First, they enlisted Microsoft to

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Speaker 2: help them serve ads to customers in late.

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Speaker 1: Twenty twenty two, but by May twenty twenty four, Netflix

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Speaker 1: announced plans to bring the ad tech in house and

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Speaker 1: shift away from Microsoft.

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Speaker 2: So while nine might be celebrating the win today, it

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Speaker 2: surely knows this may not.

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Speaker 1: Last too long. For our second story, Bunnings is launching

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Speaker 1: a new assisted living range to tap into Australia's aiaging

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Speaker 1: population and the NDAs.

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Speaker 2: Clearly Bunnings isn't just about power tools anymore. Give me

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Speaker 2: the low down.

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Speaker 1: Okay, so we all know Buddings is a place to

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Speaker 1: go for a hammer and somehow leave with six plans and.

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Speaker 2: A new appreciation for PVC piping and three snag Load

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Speaker 2: me up and juzzy boy. Remember back in twenty twenty

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Speaker 2: three Bunnings launched a new pet range to capitalize on

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Speaker 2: the growth in Australian pet ownership.

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Speaker 1: I do remember that.

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Speaker 2: Well, now it's planning to expand into the assisted living

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Speaker 2: and disability market.

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Speaker 1: Seems a little off brand for Bunnings, b man, But

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Speaker 1: go on.

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Speaker 2: Well, juzzy boy, here's a couple of stats for you.

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Speaker 2: Five and a half million Australians are technically living with

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Speaker 2: some sort of disability and.

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Speaker 1: Australia has an aging population of people who want you

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Speaker 1: age in place code word for staying in your home

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Speaker 1: for as long as possible. So Bunnings is rolling out

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Speaker 1: and you assisted living and disability category.

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Speaker 2: We're talking over twenty five hundred products, from bathroom handles

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Speaker 2: to non slip flooring and even mobility ramp.

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Speaker 1: And Bunning sees the addressable market around one point six

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Speaker 1: billion dollars right now and continuing to grow.

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Speaker 2: So what is the key learning here?

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Speaker 1: An addressable market refers to the total revenue opportunity available

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Speaker 1: for a product or service.

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Speaker 2: In Bunnings case, the current addressable market is one point

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Speaker 2: six billion dollars but is projected to grow to two

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Speaker 2: point one bill by twenty thirty and be man Thoroughly

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Speaker 2: Researching the addressable market helps businesses understand the full sales

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Speaker 2: potential if they captured one hundred percent of the market

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Speaker 2: and juz boy, this market is particularly attractive for Bunnings

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Speaker 2: because it's got two key tailwinds.

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Speaker 1: On the one tail, we've got a demographic shift a

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Speaker 1: nice way of saying an aging population.

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Speaker 2: On this other tiale over here, we've got a government

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Speaker 2: funded program via the NDIS.

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Speaker 1: So by understanding the size and growth of this market,

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Speaker 1: Bunnis can decide how much to invest in.

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Speaker 2: Stock, how much to invest in store space or marketing

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Speaker 2: or logistics in order to capture a significant share and

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Speaker 2: be man Similar to its pet food test, it reckons

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Speaker 2: the assisted living space is a big opportunity for the future.

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Speaker 2: For our third and final story, shares in retail at

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Speaker 2: Guests have skyrocketed more than thirty percent after a plan

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Speaker 2: to take the company private, But not everyone gets to

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Speaker 2: cash out.

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Speaker 1: In a real rocky road for guests lately being man,

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Speaker 1: So tell me what's going on.

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Speaker 2: So Guess is the US clothing retailer that was founded

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Speaker 2: in nineteen eighty one and helped kick off the career

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Speaker 2: of Claudius Schiffer.

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Speaker 1: Makes everything from jeans to T shirts, to watches to

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Speaker 1: perfume and choose.

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Speaker 2: Now Jozi wait. Last year, Guess, alongside a licensing specialist WHP,

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Speaker 2: they acquired a brand called Rag and Bone. But twenty

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Speaker 2: twenty four was not particularly kind to Guests and their

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Speaker 2: share price.

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Speaker 1: In fact, the share price film more than fifty percent

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Speaker 1: in the past twelve months.

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Speaker 2: For some context here, the S and P five hundred

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Speaker 2: gained twenty three percent last year.

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Speaker 1: But now b man, Guess has got some good news

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Speaker 1: because the share prices shut up more than thirty percent.

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Speaker 2: That's because WHP Global, their Rag and Bone partner, has

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Speaker 2: made an offer to buy Guesses shares at a thirty

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Speaker 2: four percent premium.

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Speaker 1: And this those guests at seven hundred and seventy million

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Speaker 1: US dollars.

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Speaker 2: But but WHP won't be buying the shares of guesses

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Speaker 2: co founders and CEO. Dozy Boy is part of the deal.

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Speaker 2: WHP will own guesses intellectual property aka it's IP, and.

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Speaker 1: The existing management team would continue to run the day

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Speaker 1: to day operations of guests under this new license.

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Speaker 2: Otherwise known as the brand management model.

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Speaker 1: So what is the key learning here?

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Speaker 2: The brand management model focuses on separating IP ownership from

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Speaker 2: operational activities.

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Speaker 1: Brand managers like WHP don't want to be running stores

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Speaker 1: and warehouses and deally with logistics.

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Speaker 2: They want to acquire well known IP and then license

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Speaker 2: it to third parties who handle the heavy lifting and the.

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Speaker 1: Man This brand model allows brand managers to stay asset light.

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Speaker 1: They essentially collect royalties and licensing fees from the operator

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Speaker 1: of the brand they OWNE So in.

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Speaker 2: This case, WHBE Global would be paid a recurring revenue

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Speaker 2: stream for the use of the guest brand, which they

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Speaker 2: would own, and the guest founders.

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Speaker 1: And CEO would still operate the stores under the license.

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Speaker 1: Fluxam there is a serious cost of PET ownership. Let

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Speaker 1: me tell you from my own experience, from the just

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Speaker 1: getting started costs, to the ongoing expenses, to the unexpected

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Speaker 1: costs as well. We cover it all in the Flux

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Speaker 1: app this week, so if you're looking at getting a

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Speaker 1: fairy friend, make sure to download the Flux app and

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Speaker 1: check it all out.

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Speaker 2: Thanks for listening, and we'll see you on for Friday