1 00:00:05,240 --> 00:00:07,840 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,880 --> 00:00:09,559 Speaker 1: and it's Wednesday, the fourteenth of May. 3 00:00:09,640 --> 00:00:12,719 Speaker 2: Dozyboy. While the trade wars between the US and China 4 00:00:12,760 --> 00:00:15,920 Speaker 2: maybe on pause for now, Australia's beef market has well 5 00:00:15,960 --> 00:00:18,440 Speaker 2: and truly benefited over the last six weeks or so. 6 00:00:18,560 --> 00:00:19,079 Speaker 1: Get this one. 7 00:00:19,120 --> 00:00:21,640 Speaker 2: Australia exported a record amount of beef of the month 8 00:00:21,640 --> 00:00:24,639 Speaker 2: of April. That's because with tariffs on Chinese goods into 9 00:00:24,680 --> 00:00:27,840 Speaker 2: the US and vice versa, China ramped up its imports 10 00:00:27,880 --> 00:00:28,880 Speaker 2: of Australian beef. 11 00:00:28,920 --> 00:00:31,880 Speaker 1: Australia benefiting from the major beef between the US and China. 12 00:00:32,240 --> 00:00:35,000 Speaker 1: Sixty seven percent of the Flux family said they struggle 13 00:00:35,040 --> 00:00:37,559 Speaker 1: to track their spending every single month, and that is 14 00:00:37,560 --> 00:00:40,160 Speaker 1: because they're either doing it by paper in their notes 15 00:00:40,200 --> 00:00:42,760 Speaker 1: out even on a really poor spreadsheet. That is why 16 00:00:42,840 --> 00:00:45,440 Speaker 1: the Flux budgeting tool is so valuable. It tracks all 17 00:00:45,440 --> 00:00:47,800 Speaker 1: you're spending in the one place and categorizes all your 18 00:00:47,840 --> 00:00:50,400 Speaker 1: spending to show you how much and where you're spending 19 00:00:50,479 --> 00:00:54,120 Speaker 1: every single month. So don't go back to paper or spreadsheets. 20 00:00:54,160 --> 00:00:56,080 Speaker 1: Make sure to download flocks out to check it out. 21 00:00:56,480 --> 00:00:59,720 Speaker 2: Three concise stories today Dozy Boy, let's do it for 22 00:00:59,760 --> 00:01:02,720 Speaker 2: our first. Woolies is planning to go through a major 23 00:01:02,840 --> 00:01:07,160 Speaker 2: reset by cutting grocery prices to regain its declining market share. 24 00:01:07,280 --> 00:01:10,720 Speaker 1: Well, it's panicking that Coals is cutting their literal lunchy man, 25 00:01:10,720 --> 00:01:11,360 Speaker 1: so tell me all. 26 00:01:11,520 --> 00:01:14,520 Speaker 2: Woolies is one of Australia's big two supermarket giants. 27 00:01:14,560 --> 00:01:17,640 Speaker 1: Together with Coals, they control around seventy three percent of 28 00:01:17,680 --> 00:01:20,280 Speaker 1: Australia's one hundred billion dollar grocery sector. 29 00:01:20,360 --> 00:01:23,200 Speaker 2: Now, Woolies has had a rough public relations run over 30 00:01:23,240 --> 00:01:24,240 Speaker 2: the past couple of years. 31 00:01:24,280 --> 00:01:27,120 Speaker 1: Yep, there were CEO missteps, there was an acid probe 32 00:01:27,280 --> 00:01:29,760 Speaker 1: and now they're no longer the main supermarket for Ozzie's 33 00:01:29,840 --> 00:01:30,360 Speaker 1: and now. 34 00:01:30,319 --> 00:01:33,480 Speaker 2: Wooly CEO has announced plans to cut prices across nearly 35 00:01:33,480 --> 00:01:34,640 Speaker 2: four hundred products. 36 00:01:34,360 --> 00:01:36,679 Speaker 1: At an average of a ten percent reduction. 37 00:01:36,400 --> 00:01:38,839 Speaker 2: And Jazie Boy, the Wooly CEO, says it's all about 38 00:01:38,959 --> 00:01:40,360 Speaker 2: rebuilding trust. 39 00:01:40,200 --> 00:01:43,280 Speaker 1: Code word for trying to recover lost market share. 40 00:01:43,400 --> 00:01:45,960 Speaker 2: The plan is to invest over one hundred million bucks 41 00:01:45,959 --> 00:01:48,160 Speaker 2: in this pricing shift, and the man, like Coals has 42 00:01:48,200 --> 00:01:52,080 Speaker 2: done already, the focus is on deeper but fewer discounts. 43 00:01:51,600 --> 00:01:55,400 Speaker 1: In particular, on the known value items, So what is 44 00:01:55,440 --> 00:01:59,040 Speaker 1: the key learning here? Known value items aka kvis are 45 00:01:59,080 --> 00:02:03,440 Speaker 1: products that consumers purchase often and are highly priced sensitive about. 46 00:02:03,520 --> 00:02:06,800 Speaker 1: Think milk, think bread, think pasta and eggs. 47 00:02:06,520 --> 00:02:09,760 Speaker 2: All the questions that politicians get hit with and often 48 00:02:09,840 --> 00:02:10,360 Speaker 2: get wrong. 49 00:02:10,480 --> 00:02:13,080 Speaker 1: Yep, and be man. Research by Bane, the consulting firm, 50 00:02:13,120 --> 00:02:16,119 Speaker 1: shows that shoppers don't remember every special they see. 51 00:02:15,880 --> 00:02:18,120 Speaker 2: But they do remember the price of milk, bread and pasta. 52 00:02:18,280 --> 00:02:21,079 Speaker 1: So if a supermarket nails the price of their kvis, 53 00:02:21,200 --> 00:02:25,280 Speaker 1: customers assume everything is cheap. Woolies is hoping to reprogram shoppers' 54 00:02:25,280 --> 00:02:28,120 Speaker 1: brains to think wool is cheap again. Yep. The hope 55 00:02:28,160 --> 00:02:31,000 Speaker 1: is that this shift will change our shoppers view their 56 00:02:31,000 --> 00:02:31,960 Speaker 1: brand long term. Yeah. 57 00:02:31,960 --> 00:02:35,000 Speaker 2: Pre pandemic, forty four percent of Australians listed Woolies as 58 00:02:35,000 --> 00:02:38,040 Speaker 2: their main supermarket, but now it's just thirty seven percent, 59 00:02:38,120 --> 00:02:38,679 Speaker 2: So be man. 60 00:02:38,760 --> 00:02:41,640 Speaker 1: Woolies is hoping these price carts will help reshape their 61 00:02:41,680 --> 00:02:44,639 Speaker 1: consumer perception and make them a number one once again. 62 00:02:44,720 --> 00:02:48,360 Speaker 2: For our second story, Life three sixty, the family tracking 63 00:02:48,400 --> 00:02:50,800 Speaker 2: app has seen its share price jump more than thirteen 64 00:02:50,840 --> 00:02:53,560 Speaker 2: percent after its paid subscriptions skyrocketed. 65 00:02:53,639 --> 00:02:56,080 Speaker 1: Tracking your off spree is now just good parenting and 66 00:02:56,120 --> 00:02:58,079 Speaker 1: not preepy, So tell me more well. 67 00:02:58,120 --> 00:03:00,760 Speaker 2: Life three sixty is a US based company that launched 68 00:03:00,760 --> 00:03:02,320 Speaker 2: in two thousand and eight and it listed on the 69 00:03:02,320 --> 00:03:03,680 Speaker 2: ASX in twenty nineteen. 70 00:03:03,800 --> 00:03:07,480 Speaker 1: Yeah. It offers family location sharing and safety features, one. 71 00:03:07,400 --> 00:03:09,680 Speaker 2: Of the first apps to make tracking your child's every 72 00:03:09,720 --> 00:03:13,840 Speaker 2: move feel more love based than lawsuit. 73 00:03:13,360 --> 00:03:16,720 Speaker 1: Worthy and b Man. Life three sixty CEO reckons that 74 00:03:16,760 --> 00:03:19,920 Speaker 1: its tracking products have become a daily essential for families 75 00:03:20,120 --> 00:03:22,200 Speaker 1: and be Man. The numbers kind of agree with him, 76 00:03:22,200 --> 00:03:25,280 Speaker 1: because Life three sixties revenue jumped over thirty two percent 77 00:03:25,440 --> 00:03:27,800 Speaker 1: for the March quarter, and as paying subscribers grew forty 78 00:03:27,800 --> 00:03:30,200 Speaker 1: three percent as well. The only hiccup was in its 79 00:03:30,200 --> 00:03:33,880 Speaker 1: hardware sales from products like tile, which dropped thirteen percent. 80 00:03:33,600 --> 00:03:36,920 Speaker 2: But investors didn't care one bit because its share price 81 00:03:37,080 --> 00:03:38,360 Speaker 2: spiked thirteen percent. 82 00:03:38,400 --> 00:03:41,360 Speaker 1: And that's because Life three sixties revenue mix is looking 83 00:03:41,480 --> 00:03:42,760 Speaker 1: a lot more juicy. 84 00:03:42,920 --> 00:03:44,160 Speaker 2: So what is the key learning here? 85 00:03:44,360 --> 00:03:46,680 Speaker 1: Not all revenues are created equally. 86 00:03:46,320 --> 00:03:49,240 Speaker 2: You see juz Boy, Life three sixty has consistently shifted 87 00:03:49,280 --> 00:03:51,480 Speaker 2: its revenue mix over the past few years. 88 00:03:51,280 --> 00:03:54,360 Speaker 1: And be Man investors love subscription based businesses because they're 89 00:03:54,400 --> 00:03:56,560 Speaker 1: predictable and have a recurring revenue yeap. 90 00:03:56,640 --> 00:03:59,400 Speaker 2: Life three sixty has two point four million pay customers, 91 00:03:59,440 --> 00:04:02,680 Speaker 2: which means a consistent stream of income month after month, 92 00:04:02,920 --> 00:04:03,360 Speaker 2: and even. 93 00:04:03,240 --> 00:04:06,680 Speaker 1: If it's hardware sales dips, the recurring revenue cushions the blur. 94 00:04:06,800 --> 00:04:09,480 Speaker 2: But it's not the only reason that investors love subscriptions. 95 00:04:09,520 --> 00:04:13,400 Speaker 1: Nope. The other reason is subscription models also scale really well. 96 00:04:13,480 --> 00:04:15,840 Speaker 2: Yep. Once a platform is up and running, it generally 97 00:04:15,960 --> 00:04:18,360 Speaker 2: cost peanuts to add more users, and with Life three 98 00:04:18,440 --> 00:04:21,080 Speaker 2: sixties new revenue mix, it's no surprise that its share 99 00:04:21,120 --> 00:04:22,680 Speaker 2: price went up thirteen percent. 100 00:04:23,320 --> 00:04:26,360 Speaker 1: For our third and final story, Fox Corp. Is launching 101 00:04:26,400 --> 00:04:29,360 Speaker 1: its own streaming service called Fox One that it doesn't 102 00:04:29,400 --> 00:04:32,119 Speaker 1: want to kill it's PATV business. In the process, another 103 00:04:32,200 --> 00:04:34,880 Speaker 1: streamer enters the group chat tell me more so. Twenty 104 00:04:34,880 --> 00:04:37,400 Speaker 1: first century Fox was the big shop media empire behind 105 00:04:37,440 --> 00:04:41,080 Speaker 1: twentieth century Fox National Geographic, as well as Fox News 106 00:04:41,120 --> 00:04:42,360 Speaker 1: and Fox Sports. 107 00:04:41,960 --> 00:04:44,400 Speaker 2: That you'll remember. In twenty nineteen, Disney came along and 108 00:04:44,440 --> 00:04:47,680 Speaker 2: acquired the majority of twenty first century Fox's assets, But 109 00:04:47,760 --> 00:04:50,719 Speaker 2: Disney didn't buy Fox News, Fox Sports, and Fox Entertainment, 110 00:04:50,720 --> 00:04:52,440 Speaker 2: which now sits under the Fox. 111 00:04:52,200 --> 00:04:54,039 Speaker 1: Corp brand and then man, these are some of the 112 00:04:54,040 --> 00:04:57,080 Speaker 1: OG channels in the PATV game, or keyble as the 113 00:04:57,080 --> 00:04:58,200 Speaker 1: Americans like to call it. 114 00:04:58,240 --> 00:05:00,680 Speaker 2: And now Fox Corp. Has announced plans to launch a 115 00:05:00,720 --> 00:05:03,800 Speaker 2: new streaming service called Fox One to compete against the 116 00:05:03,880 --> 00:05:06,080 Speaker 2: big dogs and cats of streaming. 117 00:05:06,120 --> 00:05:10,080 Speaker 1: And Fox's goal is to attract what they call cord never's. 118 00:05:09,600 --> 00:05:12,200 Speaker 2: In other words, people who have never paid for cable 119 00:05:12,200 --> 00:05:13,480 Speaker 2: TV in their life. 120 00:05:13,200 --> 00:05:16,600 Speaker 1: Because they're desperate not to lose their existing PATV customers 121 00:05:16,640 --> 00:05:17,839 Speaker 1: as part of this new offer. 122 00:05:18,040 --> 00:05:20,000 Speaker 2: So what is the key learning here? 123 00:05:20,080 --> 00:05:23,400 Speaker 1: Product cannibalization is when a company's new product eats into 124 00:05:23,400 --> 00:05:25,800 Speaker 1: the market share or revenue of an existing product. 125 00:05:25,880 --> 00:05:28,960 Speaker 2: Ideally, you launch something new to expand your total market. 126 00:05:28,760 --> 00:05:32,120 Speaker 1: But sometimes your latest innovation just ends up eating some 127 00:05:32,200 --> 00:05:35,400 Speaker 1: of your existing offering. A classic example is Apple and 128 00:05:35,440 --> 00:05:37,800 Speaker 1: the iPhone YEP. When Apple launched the iPhone in two 129 00:05:37,800 --> 00:05:40,880 Speaker 1: thousand and seven, the iPod was absolutely booming. 130 00:05:40,920 --> 00:05:43,440 Speaker 2: But the iPhone did everything the iPod did, plus a 131 00:05:43,440 --> 00:05:45,760 Speaker 2: whole lot more, and by twenty eleven, the iPhone sales 132 00:05:45,800 --> 00:05:50,120 Speaker 2: had overtaken iPod sales and eventually obliterated the iPod altogether. 133 00:05:50,279 --> 00:05:51,640 Speaker 2: Total cannibalization. 134 00:05:51,800 --> 00:05:54,320 Speaker 1: But the man. If Apple didn't launch the iPhone, someone 135 00:05:54,360 --> 00:05:56,440 Speaker 1: else would have filled that innovation gap. 136 00:05:56,279 --> 00:05:58,960 Speaker 2: And the iPod would have faded away anyway. 137 00:05:59,080 --> 00:06:02,440 Speaker 1: So Apple chose to disrupt itself rather than let someone else. 138 00:06:02,279 --> 00:06:04,279 Speaker 2: Do it, and does it boy. While Fox is trying 139 00:06:04,360 --> 00:06:07,720 Speaker 2: not to cannibalize its cable customers with Fox one, sometimes 140 00:06:07,720 --> 00:06:11,520 Speaker 2: cannibalization needs to become a strategic move to just stay relevant. 141 00:06:11,839 --> 00:06:14,560 Speaker 1: Seventy three percent of the Flex family have absolutely no 142 00:06:14,640 --> 00:06:17,080 Speaker 1: idea how much money they spend each and every month, 143 00:06:17,080 --> 00:06:19,280 Speaker 1: and that means it becomes a lot harder to say. 144 00:06:19,360 --> 00:06:21,960 Speaker 1: That's why the Flux Budgeting tool helps you identify how 145 00:06:22,040 --> 00:06:24,520 Speaker 1: much you've spent each and every month, compares it against 146 00:06:24,520 --> 00:06:27,520 Speaker 1: the last month, and even categorizes all your transactions. It 147 00:06:27,600 --> 00:06:29,680 Speaker 1: takes less than thirty seconds to connect and will help 148 00:06:29,760 --> 00:06:31,800 Speaker 1: you get on your saving journey. Make sure to download 149 00:06:31,800 --> 00:06:33,680 Speaker 1: the Flux app and check out the budgeting tool. 150 00:06:33,720 --> 00:06:36,120 Speaker 2: Thanks for listening, and we'll see you on Friday.