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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 Wednesday. There twenty

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Speaker 2: third of April. Juzzy boy.

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Speaker 1: Millions of people are chatting with AI every single day,

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Speaker 1: and many are being very polite about it, you know,

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Speaker 1: just in case I Robot becomes a true story. Forget

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Speaker 1: this one. Open AI's Sam Oltman says, all those pleases

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Speaker 1: and thank you are costing them tens of millions in electricity. So,

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Speaker 1: josey boy, the real question is would you rather stay

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Speaker 1: on AI's good side or help open AI save on

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Speaker 1: its power bill.

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Speaker 2: AI is good side, no doubt about it. Fucks down

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Speaker 2: with the liberation, take tariffs on and off, then on

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Speaker 2: then off. The talks of her a session have resurfaced

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Speaker 2: because many people are concerned. So if you want to

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Speaker 2: learn more about the economy and what might be happening,

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

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

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Speaker 1: our first. She In the fast fashion retailer has seen

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Speaker 1: its revenue jump to over one point two billion dollars

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Speaker 1: in Australia.

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Speaker 2: You central here, be man, So what is going on?

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Speaker 1: Well, Jessy Boy. She is the China founded fashion retailer

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Speaker 1: that was formed back in two thousand and eight.

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Speaker 2: But Benman, the real glow up happened in twenty twenty

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Speaker 2: when TikTok creators started flooding our feeds with hashtag she

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Speaker 2: In hall content yep.

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Speaker 1: She In is known for on trend cheap that comes

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Speaker 1: and goes real fast.

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Speaker 2: It's BacT Beman. On an average day, she In adds

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Speaker 2: two thousand new items to its online store.

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Speaker 1: Some days it's up to nine thousand new items release Wow.

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Speaker 2: Other retailers are still mood boarding their ideas well. She

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Speaker 2: In's already shipped the product.

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Speaker 1: And now she In has announced that it's Australian revenue

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Speaker 1: in twenty twenty four jumped to over one billion dollars

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Speaker 1: for the very first time.

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Speaker 2: We're talking a jump of twenty five percent to one

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Speaker 2: point twenty three billion dollars.

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Speaker 1: And juzy boy, this means it's generating more revenue than

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Speaker 1: Accent Group, which owns hype Platypus Style Runner.

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Speaker 2: But be man, it wasn't just growing revenue, because she

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Speaker 2: In also announced a thirty percent jump in.

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Speaker 1: Its profit as well, up to just over fifteen million bucks.

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Speaker 2: The reason a whole lot of customers who've returned again

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Speaker 2: and again and again and again in the same year.

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Speaker 1: And that means they're growing the customer lifetime value.

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

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Speaker 1: Customer lifetime value is basically how much money a business

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Speaker 1: can expect to make from a single customer over time.

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Speaker 2: For she In, that numbers going up fast thanks to

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Speaker 2: its huge number of loyal repeat Aussie shoppers.

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Speaker 1: In fact, forty two percent of their customers are buying

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Speaker 1: from them multiple times a year, and.

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Speaker 2: Each repeat customer costs less to acquire and brings in

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Speaker 2: more revenue.

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Speaker 1: She In pulls them in with cheap prices.

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Speaker 2: But then keeps customers coming back with constant your rivals

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Speaker 2: and also those annoying limited time offers that are driven

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Speaker 2: by algorithms.

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Speaker 1: She In may only be making a few bucks per item,

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Speaker 1: but when customers come back again and again and again,

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Speaker 1: it really adds up.

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Speaker 2: Class a case of low margins, high volume, and a huge,

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Speaker 2: huge payoff. For our second story, a US judge has

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Speaker 2: found that Google illegally maintained a monopoly in the ad

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Speaker 2: tech industry, and the consequences could shake up the entire

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Speaker 2: ad industry.

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Speaker 1: Grab your popcorn, juzzy boy, because this is a big one.

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Speaker 1: What's going on here?

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Speaker 2: Okay? So Google started as the search engine we all

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Speaker 2: know and love or love to hate. Yeah, but be man.

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Speaker 2: It's also the dominant force in digital advertising.

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Speaker 1: In twenty twenty one, Google paid over twenty six billion

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Speaker 1: US dollars to companies like Apple and Samsung to become

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Speaker 1: their default search engines.

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Speaker 2: And be man. This has been a big driver for

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Speaker 2: Google's AD revenue, which generated more than three hundred and

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Speaker 2: forty eight billion US dollars just last year.

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Speaker 1: Now get this one, jazy boy. A US judge has

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Speaker 1: already ruled Google broke anti trust laws to dominate Internet search.

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Speaker 2: But now be man. A US federal judges found the

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Speaker 2: Google also used its dominance to squeeze out its rivals.

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Speaker 1: In a one hundred and fifteen page of bedtime reading document,

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Speaker 1: the judge said that Google had broken the law to

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Speaker 1: build its dominance and be man.

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Speaker 2: The case could force Google to digest parts of its

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Speaker 2: ad tech business, and the next court phase could reshape

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Speaker 2: our ads bought and sold on the Internet.

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Speaker 1: Interesting, So what is the key learning here? Sometimes monopolies

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Speaker 1: are not just about size. They're actually also about power.

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Speaker 2: In Google's case, the court found it used that power

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Speaker 2: not to innovate, but to eliminate and crush their competition.

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Speaker 1: And the advertising technology world runs behind the scenes. When

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Speaker 1: you load a website, split second auctions decide what ads

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Speaker 1: you see. Google has its fingers in all the piles.

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Speaker 1: It runs the auctions, provides the tools for the buyers

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Speaker 1: and sellers, and conveniently collects the data as well.

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Speaker 2: So it's basically acting as a player, a referee, underscoreboard,

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Speaker 2: all at the same time.

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Speaker 1: Correct and probably selling the hot dogs as well.

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Speaker 2: Get this, b man, Google controls around eighty seven percent

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Speaker 2: of the ad selling software market.

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Speaker 1: And jazzboy with respect to this court case, I can't

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Speaker 1: imagine Google's just going to sit there and accept these claims.

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Speaker 1: So what are I arguing?

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Speaker 2: Well, they claim that customers chose Google because their products

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Speaker 2: were so so good.

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Speaker 1: But the court found that publishers had little choice because

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Speaker 1: Google dominated the market.

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Speaker 2: So, b Man, it's a reminder that when a company

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Speaker 2: controls the full ecosystem, it opens itself up to being broken.

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Speaker 1: Apart for our third and final story, arn Media is

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Speaker 1: facing another scandal after it has admitted to using an

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Speaker 1: AI generated personality as one of its daytime radio hosts.

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Speaker 2: AARN can't catch a break at the moment, be Man,

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Speaker 2: so tell me more well.

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Speaker 1: ARN Media is the Australian media company founded in nineteen

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Speaker 1: eighty eight.

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Speaker 2: They've got more than fifty eight radio stations, including Kiss, Gold,

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Speaker 2: Cat and iHeart in Australia.

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Speaker 1: But Jazzy Boy. The past twelve months have not been

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Speaker 1: a happy time in the ARN studio. Nope, their share

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Speaker 1: price has fallen by more than thirty one percent. They

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Speaker 1: failed in their bid to acquire Southern Cross Media, the

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Speaker 1: owner of Triple M and Hit FM, and their.

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Speaker 2: Headline hosts Kyle and JACKIEO have been flopping in the

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Speaker 2: Melbourne market and it now seems like ARN is in

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Speaker 2: the spotlight once again with their radio station Cata CAT

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Speaker 2: is aarn's digital hip hop radio station.

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Speaker 1: I'll give You the Rundown. Last year, CATA introduced very

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Speaker 1: quietly their new on air talent who hosts their eleven

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Speaker 1: AM to three pm show.

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Speaker 2: She goes by the name Thi and she's been nixing

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Speaker 2: some absolute bangers that.

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Speaker 1: THI happens to conveniently rhyme with the word AI. Coincidence

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Speaker 1: be then I think notap So now ARN and Cata

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Speaker 1: have admitted to using an AI audio platform as their

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Speaker 1: daytime host.

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Speaker 2: They use a tool that turns text into thigh speech.

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Speaker 1: The outest part Thy's voice and likeness is modeled on

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Speaker 1: an ARN employee in the finance team.

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Speaker 2: And now be Man. The lack of transparency has led

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Speaker 2: to quite a lot of internal concerns. So what's the

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Speaker 2: key learning here? AI might say your money, but it

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Speaker 2: can also cost you credibility.

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Speaker 1: According to r MIT research, just six point four percent

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Speaker 1: of Australians felt comfortable with AI generated news presenters and

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Speaker 1: be Man. That figure only rose to nine point six

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Speaker 1: percent when the AI use was disclosed, So that means

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Speaker 1: that more than ninety percent of Australians get the ick

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Speaker 1: when a robot reads the news.

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Speaker 2: Exactly and be Man. That's exactly why Cater's decision to

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Speaker 2: run an AI host for over six months without ever

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Speaker 2: telling listeners has caused some serious controversy. So companies experimenting

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Speaker 2: with AI need to be upfront with how they're using this.

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Speaker 1: Ar or risk losing the audience as they're actually trying.

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Speaker 2: To serve blux'mam, the big R word is on everyone's

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Speaker 2: lips right now. Is it going to happen in Australia,

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Speaker 2: in the US and around the world. We cover them

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Speaker 2: all in the Flux out to make sure to download

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Speaker 2: the app and check it all out.

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Speaker 1: Thanks for listening and we'll see you on Monday after

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Speaker 1: the public holiday on Friday,