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Speaker 1: This is what the Flux.

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Speaker 2: I'm Brett and I'm Justin and Monday, the twenty first

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Speaker 2: of July.

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Speaker 1: Jesse boy. We've spoken about the downfall of Australian retail

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Speaker 1: a fair bit over the last few years, and the

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Speaker 1: pain still keeps coming. And this time it's for Country Road.

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Speaker 1: Country Road warned that its flagship stores in Sydney will

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Speaker 1: be closed once the lease is up, and on top

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Speaker 1: of that, it will look to downsize a whole lot

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Speaker 1: of other stores as well. Not exactly a vote of

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Speaker 1: confidence for Country Road and even the retail sector.

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Speaker 2: Not at all.

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Speaker 1: Man.

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Speaker 2: I'll give you a little good news story though I

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Speaker 2: saved one hundred and fifty bucks last week? Did you

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Speaker 2: actually thanks to the subscription tracker in the Flux app Now,

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Speaker 2: Fox Sam, if you want to save money every single

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Speaker 2: month and identify subscriptions you're paying for but forgotten about,

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Speaker 2: make sure to download the Flux app and check out

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Speaker 2: the subscription tracker.

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Speaker 1: Three insightful stories today, Juzzy boy, Let's do it for

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Speaker 1: our first. Australia's biggest bank is in hot water with

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Speaker 1: the Finance Sector Union for allegedly using quote redundancy as

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Speaker 1: cover to send local jobs offshore.

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Speaker 2: Boiling water alert, bman, So tell me what's going on

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Speaker 2: with the big yellow well.

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Speaker 1: Combank is not just Australia's biggest bank, Juzzy boy, it's

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Speaker 1: Australia's biggest listed company.

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Speaker 2: Yeah, we're talking more than seventeen million Australian customers.

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Speaker 1: It has a valuation of three hundred and five billion dollars.

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Speaker 2: And to put that into perspective, Febman, because I know

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Speaker 2: you love your perspective. Its market value is nearly as

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Speaker 2: big as Westpac, an said and NAB combined.

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Speaker 1: But late last week, the Finance Sector Union, or the FSU,

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Speaker 1: they launched legal action against CBA in the Fair Work Commission.

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Speaker 1: They alleged that Combank breach its enterprise agreement yep. Last

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Speaker 1: month it made three hundred and four roles in Australia redundant.

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Speaker 2: But the FSU claim that Combank is now hiring for

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Speaker 2: near identical jobs in India, same job titles, same roles,

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Speaker 2: different continent.

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Speaker 1: The union reckons this was a cost cutting exercise masked

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Speaker 1: as redundancy and.

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Speaker 2: This violates the union agreement.

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Speaker 1: But this one ain't over because Combank is refuting all

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Speaker 1: of those allegations.

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Speaker 2: But nothing like a bit of a labor arbitrage for

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Speaker 2: one of Australia's most profitable companies be Man.

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Speaker 1: Yeah, so what is the key learning here?

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Speaker 2: Labor arbitrage is the practice of capitalizing on wage differences

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Speaker 2: between different regions.

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Speaker 1: In other words, hiring workers in lower cost countries to

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Speaker 1: perform the same tasks for less money.

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Speaker 2: And while this can make financial sense for a company's

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Speaker 2: bottom line, it's not a great look, especially when the

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Speaker 2: company is public, and especially when the company is highly profitable.

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Speaker 1: Might I remind you, Juzzy boy that Kombank announced a

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Speaker 1: six percent rising cash profits to two point six billion

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Speaker 1: dollars for the March quarter alone. Huge, But b Man,

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Speaker 1: this is part of a broader plan for combak yeap

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Speaker 1: Coombank's Indian employee count has almost doubled in the last

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Speaker 1: two years to over five six hundred hours. So in

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Speaker 1: CBA's case, moving drops to India will likely save them

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Speaker 1: tens of millions of dollars, but it also opens them

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Speaker 1: up to a bit of a legal risk and reputational

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Speaker 1: risks as well.

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Speaker 2: For our second story, Netflix just posted record quarterly revenue,

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Speaker 2: but investors still sold off the stock because of its

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Speaker 2: pricey content strategy.

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Speaker 1: Grab that popcorn, juzzy boy, and I know you like

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Speaker 1: popcorn because this one is due see break it down

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Speaker 1: for me.

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Speaker 2: We know the sorry of Netflix started as a DVD

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Speaker 2: rental service back in ninety seven.

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Speaker 1: Grown into the world's biggest subscription video streaming service.

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Speaker 2: And now blocking you from sharing your account with friends

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Speaker 2: and family and foes as well.

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Speaker 1: Does wait? Netflix just announced its revenue for the most

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Speaker 1: recent quarter reached eleven point eight billion US dollary.

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Speaker 2: Due we're talking to casual sixteen percent jump in their

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Speaker 2: quarterly revenue.

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Speaker 1: And while Netflix doesn't report on specific subscriber numbers anymore,

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Speaker 1: its subscribers streamed ninety five billion hours in the first

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Speaker 1: half of this year.

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Speaker 2: That is enough time to watch suits from start to

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Speaker 2: finish all of the seasons about eighteen million times over.

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Speaker 1: But despite these impressive results, Netflix's share price got a

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Speaker 1: bit of a whack.

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Speaker 2: And why is that?

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Speaker 1: Well, the Flix warned that their margin is expected to

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Speaker 1: drop in the second half of this year, and why

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Speaker 1: is that. The reason for that is because they're spending

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Speaker 1: big dollars on original content, and despite.

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Speaker 2: Them raising their full year revenue forecast, the big budget

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Speaker 2: series are going to hit their bottom line.

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Speaker 1: But Netflix's CFO reckons bilding assets rather than buying them

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Speaker 1: is the only way forward.

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Speaker 2: Interesting, so tell me what is the key Lenie here.

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Speaker 1: When you own the show, you don't have to keep

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Speaker 1: paying to rent someone else's content.

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Speaker 2: And that is the big shift that Netflix is making.

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Speaker 1: Most streaming platforms start by buying or licensing content.

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Speaker 2: They pay big bucks to license popular shows or movies

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Speaker 2: so they can quickly build a catalog.

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Speaker 1: Like when Netflix paid one hundred million dollars to license

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Speaker 1: Friends for just a year.

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Speaker 2: But over time, b Man, that gets really expensive.

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Speaker 1: And these licensing deals often come with an expiring day.

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Speaker 2: So you're constantly forking out money without building any long

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Speaker 2: term value, just as foxtell now with all the HBO

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Speaker 2: shows like Euphoria and House of Dragon waltzing out the

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Speaker 2: door really got to hurt, but be man. By creating

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Speaker 2: its own hit shows, Netflix is building a library that

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Speaker 2: it fully owns.

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Speaker 1: Like squid Game, which wracked up one hundred and twenty

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Speaker 1: two million views in just a few weeks. For our

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Speaker 1: third and final story, Lovable, the startup helping people build

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Speaker 1: apps without writing code, has cracked Unicorn status just eight

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Speaker 1: months after launch, development teams going into survival mode. Tell

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Speaker 1: me what's going on here? Juzy boy okay?

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Speaker 2: So, Lovable is a Swedish AI startup that let's uses

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Speaker 2: build websites and apps using natural language.

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Speaker 1: In other words, you can tell it in plain English

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Speaker 1: or French or Swedish what kind of app or website

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Speaker 1: you want?

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Speaker 2: Make me a hair salon booking app with blush pink

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Speaker 2: tones and gentle millennial.

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Speaker 1: Energy and boomerooney, It's done.

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Speaker 2: The website designed.

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Speaker 1: The color palette has been chosen, even the beautiful logo

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Speaker 1: been made for you, Josie Boy. Lovable only launched in

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Speaker 1: November last year, but already has two point three million

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Speaker 1: active users and one hundred and eighty thousand paying subscribers

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Speaker 1: and probably most excitingly, seventy five million dollars in annual

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Speaker 1: recurring revenues.

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Speaker 2: Not bad for a company with just forty five employees.

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Speaker 1: Now, Lovable just raised a whopping two hundred million US

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Speaker 1: dollars at evaluation of just under two billion US dollars

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Speaker 1: Unicorn Alert all part of an up and coming group

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Speaker 1: of vibe coding companies.

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Speaker 2: So what is the key learning here?

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Speaker 1: Vibe coding is the idea that you don't need to

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Speaker 1: know how to code, You just need to know what

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Speaker 1: you want.

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Speaker 2: In other words, need to be able to describe your

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Speaker 2: idea clearly in natural language. But AI can handle the

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Speaker 2: rest and b man, this shift means way more people

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Speaker 2: can test ideas and build products and launch.

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Speaker 1: Apps as well, and that means AI is shifting the

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Speaker 1: balance of power from software engineers to entrepreneurs. And clearly, jesyboy,

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Speaker 1: democratizing software development is a very big business.

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Speaker 2: Just last month, AI coding assistant Cursor raised five hundred

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Speaker 2: million US dollars on a near ten billion US dollar valuation.

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Speaker 1: So jaesiboy, the next wave of AI companies are all

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Speaker 1: about making software more accessible and lovable.

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Speaker 2: Is clearly cash here, speaking of aiv man, did you

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Speaker 2: know our subscription tracker used a little sprinkle of AI

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Speaker 2: to identify all of your recurring payment black subscriptions here

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Speaker 2: Netflix to Spotify and shows you how much is spending

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Speaker 2: each and every month. It can save you hundreds of dollars.

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Speaker 2: To make sure you've downloaded the flux app and you

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Speaker 2: connect to your accounts to find all the ways you

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Speaker 2: can save money.

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Speaker 1: Thanks for listening and we'll see you on Wednesday,