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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 it's Monday, the twenty

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Speaker 2: first of October.

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Speaker 1: Well, jusey boy, it was good news and bad news

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Speaker 1: for Star Entertainment last week. The good news they were

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Speaker 1: able to keep their casino license for now. The bad news, though, well,

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Speaker 1: Star was hit with fifteen million dollars in fines and

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Speaker 1: its license suspension has been extended to early twenty twenty five. Sometimes,

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Speaker 1: jusey boy, you just got to take the good with

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Speaker 1: the bat so true.

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Speaker 2: Flex Out ever listened to the stories on the pod

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Speaker 2: and thought, I'm not to understand the share market just

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Speaker 2: a little bit better. Well, if you're feeling stuck at

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Speaker 2: the starting line of your investing journey, we have got

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Speaker 2: you because this month we're partnering with Raise to run

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Speaker 2: a course in the Academy called Understanding the Share Market.

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Speaker 2: Everything from how to buy and sell shares, understanding auto types,

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Speaker 2: even the tax implications as well. And it's up to

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Speaker 2: three hundred dollars worth of prizes for those competing. So

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

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Speaker 2: the Academy this month.

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Speaker 1: Three spectacular stories today, juzzy boy, let's do it for

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Speaker 1: our first. Foxdell has announced it will start to offer

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Speaker 1: sports content and Sky News Australia on its streaming service Binge.

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Speaker 2: He's Binge stealing Ko's personality here and Flashes So what

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Speaker 2: is going on?

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Speaker 1: Well, juzzy boy, we know. Foxdell is the Australian PATV

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Speaker 1: company that started in nineteen ninety five.

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Speaker 2: Was originally a joint venture between News Corp and Telstra,

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Speaker 2: hence the name Fox from NewsCorp and Tell from Telstra.

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Speaker 2: But once the world started transitioning towards streaming services, Foxtel

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Speaker 2: decided it desperately needed in on the action too.

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Speaker 1: And it went on to launch Binge and Ko and Flash,

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Speaker 1: all offering different content to Foxtel's audience.

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Speaker 2: And now be Man. Foxdal's announced it will be introducing

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Speaker 2: live sports and Sky News Australia to its streaming service

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Speaker 2: Binge for the first time.

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Speaker 1: We're talking Big Bash, cricket, regular AFL and NRL matches,

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Speaker 1: as well as some talk shows.

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Speaker 2: And be Man. That's come because Foxdale's trying to recover

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Speaker 2: from the breakup it's currently having with HBO.

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Speaker 1: Yep, Foxtell needs to remove all HBO shows like House

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Speaker 1: of the Dragon, and the last of us from its platform.

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Speaker 2: Because HBO Max is coming to Australia next year and

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Speaker 2: competing with Foxdale.

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Speaker 1: The Juzzy Boy, It's sounding like this could be a

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Speaker 1: risky move for Foxdell and it could end up cannibalizing

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Speaker 1: its other offerings.

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Speaker 2: Interesting, So what is the key learning here?

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Speaker 1: Product cannibalization is when a new product it's into the

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Speaker 1: sales or market share of an existing product, rather than

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Speaker 1: bringing in new revenue and be man.

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Speaker 2: It tends to happen when a new product is too

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Speaker 2: similar or directly competes with an existing way.

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Speaker 1: Now, while Foxale's og offering was PayTV, Foxel effectively cannibalized

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Speaker 1: its own business when it introduced streaming services.

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Speaker 2: There was Ko, which took the content from Fox Sale's

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Speaker 2: sports channels like Fox Sports, Fox Footy, ESPN. Then Binge

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Speaker 2: came along and took the content from Foxdale's film and

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Speaker 2: entertainment channels. And then there was Flash which took content

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Speaker 2: from Foxdale's news channels like san and Fox News and BBC.

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Speaker 1: And does it boait. According to all reports, this seemed

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Speaker 1: to be an effective move.

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Speaker 2: The streaming services have more than three million subscribers can

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Speaker 2: buy but now be man with Binge Seppi into Ko's

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Speaker 2: sports territory. It kind of looks like Foxdale's got some

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Speaker 2: content overlapp happening on its platforms.

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Speaker 1: Now does boy? Foxdale says there's less than ten percent

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Speaker 1: overlap in the subscribers of Binge and Ko.

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Speaker 2: But I'll tell you what. If it's going to mix

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Speaker 2: content across its streaming services, it's going to have to

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Speaker 2: walk a very fine line to avoid any further cannibalization.

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Speaker 1: For our second story, for light Center has seen its

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Speaker 1: share price drop more than fifteen percent after it warned

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Speaker 1: the market that airfare prices were decreasing.

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Speaker 2: Bit of a vague, ambiguous update from flight Center here,

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Speaker 2: b man, So tell me what's going on. Well, juzzy boy,

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Speaker 2: we know flight Center for its I would say I

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Speaker 2: know it for its irritating jingle and don't forget it's

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Speaker 2: stock video esque travel agent with a big cheesy green

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Speaker 2: at the end of each ad.

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Speaker 1: Now, our flight Center has been around since nineteen eighty four.

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Speaker 1: It had an existential crisis during COVID.

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Speaker 2: Yeah, it was forced to close down the stores, let

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Speaker 2: go of staff, and made a pretext loss of more

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Speaker 2: than three hundred and thirty million bakarunis in FI twenty one.

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Speaker 1: But then it bounce back big time, didn't it, Juzzy boy?

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Speaker 2: It did. Its share price has more than doubled since COVID.

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Speaker 1: But Friday not really a data remember for old flight Center.

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Speaker 2: You see b Man. Flight Center shed an update saying

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Speaker 2: it was performing marginally above the same quarter last year.

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Speaker 1: But there is quote some inconsistency month to month.

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Speaker 2: And worst of all, they couldn't give a guidance for

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Speaker 2: the upcoming year because it was currently too early to

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Speaker 2: draw conclusions. Is a red flag I've ever seen one,

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Speaker 2: and the Man investors agreed with you. Next minute, flight

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Speaker 2: Center share price drop more than seventeen percent.

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Speaker 1: Is that right, Josey boy? Well, I'm over here wondering

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Speaker 1: what is the key learning.

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Speaker 2: When airfair prices start to decrease, the entire travel industry

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Speaker 2: braces for turbulence.

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Speaker 1: Now, airfare prices are a key driver of revenue for

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Speaker 1: travel agencies like flight Center, So.

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Speaker 2: When the company warns of an airflare deflation, investors take note.

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Speaker 1: Tell it to me in a maths equation, Josie Boy.

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Speaker 2: Will be man. Lower airfare prices mean less revenue per

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Speaker 2: transaction for both the airline and the travel agent.

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Speaker 1: And that means companies may need to sell more tickets

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Speaker 1: to maintain the same revenue.

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Speaker 2: Levels they're on top of that the fact that flight

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Speaker 2: center couldn't commit to a guidance and you've got a

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Speaker 2: lot of warrant investors.

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Speaker 1: For our third and final story, PepsiCo has announced it

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Speaker 1: will put more chippies back into its Dorrito bags after

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Speaker 1: consumers have been furious with its shrink flation.

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Speaker 2: No, no, no, love a few more flame and hot

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Speaker 2: Doritos in the bag of cornchysb man, so tell me more.

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Speaker 1: Well, PepsiCo is the enormous food and beverage conglomerate behind

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Speaker 1: you guessed the Pepsi. Yeah, but it's also the company

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Speaker 1: behind brands like Cheetos, Doritos, Lays and Smiths. Don't you

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Speaker 1: dare forget seven Up or Mountain Dew and that weird

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Speaker 1: orange drink Merinda.

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Speaker 2: Can never be made around that. I've been mad. Over

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Speaker 2: the past few years at PepsiCo and other companies have

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Speaker 2: faced some serious backlash over the shrink flation of their products.

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Speaker 1: Now, Josey Boy. Shrink Flation is where the size of

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Speaker 1: a product is reduced but the price remains the same.

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Speaker 2: Sometimes the price even increases. I know.

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Speaker 1: So PepsiCo has announced it will de shrinkify some of

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Speaker 1: its products.

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Speaker 2: We're talking twenty percent more chips for the same price

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Speaker 2: in a standard bag.

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Speaker 1: Talk about a groveling apology if.

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Speaker 2: You don't mind and be man. It makes sense because

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Speaker 2: the size of many of their products have shrunk since

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Speaker 2: twenty twenty.

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Speaker 1: But on top of this, Pepsi's snack and bev prices

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Speaker 1: have jumped forty percent since twenty twenty.

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Speaker 2: So what is the key learning here?

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Speaker 1: Will companies may just see shrink flation as a clever

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Speaker 1: marketing trink, it has a direct impact on consumer trust

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Speaker 1: for the brand a man. When companies reduce the quantity

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Speaker 1: of a product while maintaining or increasing the price, customers

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Speaker 1: often feel very cheat it. Here's a little stat I

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Speaker 1: found Jazzy Boy six ste percent of shoppers switch brands

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Speaker 1: when they notice shrinkflation. That's according to Clarify Capital, and.

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Speaker 2: It actually a noise consumers more than straight up price hikes.

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Speaker 1: And then, according to Choice, the key culprits of shrink

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Speaker 1: flation here in Australia are Jiff's Bathroom Cleaner, MC Committee's

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Speaker 1: biscuits as well as lots of the coal's home brand products.

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Speaker 2: So then it's a good step to PepsiCo is deshrink

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Speaker 2: buying their products. But now we just need to wait

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Speaker 2: for the rest. You'll move coals flock Dan. If you

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Speaker 2: are feeling stuck at the starting line of your investing journey,

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Speaker 2: we have got you because this month's Academy course cuts

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Speaker 2: to all of the clutter. We're talking breaking down habit

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Speaker 2: by shares, decoding risk tolerance, and unlocking all the secrets

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Speaker 2: of ETF. Very excited if you're partnering with Rays this month,

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Speaker 2: nan So fluxdam you're keen to learn more and win prizes,

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

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Speaker 2: out the academy this month.

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