1 00:00:05,240 --> 00:00:07,800 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,840 --> 00:00:09,680 Speaker 1: and it's Friday, the fourteenth of February. 3 00:00:09,760 --> 00:00:10,200 Speaker 2: Doese Boy. 4 00:00:10,240 --> 00:00:14,560 Speaker 3: Woolwork's former CEO, Brad Banducci has gone from one controversy 5 00:00:14,640 --> 00:00:17,360 Speaker 3: machine to the next. We know he left Woollies last 6 00:00:17,400 --> 00:00:20,800 Speaker 3: year after political pressure over price gouging, and now he's 7 00:00:20,840 --> 00:00:24,120 Speaker 3: become the CEO of TEG, the owner of Ticketech, who's 8 00:00:24,200 --> 00:00:27,960 Speaker 3: most certainly had their own controversies recently, from tech malfunctions 9 00:00:27,960 --> 00:00:30,240 Speaker 3: for Taylor Swift concerts to data breaches. 10 00:00:30,360 --> 00:00:33,800 Speaker 1: It's another wild ride Flux APM. If you want to 11 00:00:33,840 --> 00:00:35,920 Speaker 1: kick off the weekend on a high with fifty bucks 12 00:00:35,960 --> 00:00:38,120 Speaker 1: in your front pocket, there is only one place to be. 13 00:00:38,280 --> 00:00:40,680 Speaker 1: It is in the Flux app on a Friday. All 14 00:00:40,680 --> 00:00:42,320 Speaker 1: you've got to do is download the app, have your 15 00:00:42,320 --> 00:00:45,000 Speaker 1: notifications turned on, and if you answer the three questions 16 00:00:45,000 --> 00:00:47,559 Speaker 1: correctly and first you can lean the fifty bucks to 17 00:00:47,560 --> 00:00:49,360 Speaker 1: make sure to download the Flux app and turn your 18 00:00:49,360 --> 00:00:50,080 Speaker 1: notifications on. 19 00:00:50,240 --> 00:00:53,720 Speaker 3: Three mind boggling stories today, Dozy Boy, let's do it 20 00:00:53,760 --> 00:00:57,280 Speaker 3: for our first. Australian super has been sued by ASIK 21 00:00:57,520 --> 00:01:01,200 Speaker 3: for knowingly delaying the payment of debt benefit claims for 22 00:01:01,280 --> 00:01:02,240 Speaker 3: over five years. 23 00:01:02,400 --> 00:01:05,280 Speaker 1: Even in death, you can't escape the admin. Tell me 24 00:01:05,319 --> 00:01:06,000 Speaker 1: what's going on here? 25 00:01:06,080 --> 00:01:06,280 Speaker 2: Okay. 26 00:01:06,360 --> 00:01:09,760 Speaker 3: So, Australian Super is the largest superfund in Australia that 27 00:01:09,840 --> 00:01:11,920 Speaker 3: was founded back in two thousand and six through a 28 00:01:11,959 --> 00:01:13,520 Speaker 3: merger of two other funds. 29 00:01:13,280 --> 00:01:16,679 Speaker 1: Back when James Bond was strutting his stuff in Casino Royale. 30 00:01:16,319 --> 00:01:16,959 Speaker 2: And Jussie Boy. 31 00:01:17,000 --> 00:01:20,000 Speaker 3: Australian Super has over three hundred and forty billion dollars 32 00:01:20,000 --> 00:01:21,399 Speaker 3: of savings under management and. 33 00:01:21,440 --> 00:01:24,080 Speaker 1: More than three point four million members around Australia. 34 00:01:24,160 --> 00:01:27,759 Speaker 3: And with big investment balances comes very big expectations. Now 35 00:01:27,760 --> 00:01:29,959 Speaker 3: being man, Australian Super is in quite the bit of 36 00:01:30,000 --> 00:01:32,559 Speaker 3: hot water yep. Australian Super is being sued by ASCIK 37 00:01:32,680 --> 00:01:37,480 Speaker 3: for significant delays in processing death benefit claims of their customers. 38 00:01:37,520 --> 00:01:40,200 Speaker 1: That's the payment made from your superfund to your chosen 39 00:01:40,440 --> 00:01:42,000 Speaker 1: beneficiary upon death. 40 00:01:42,080 --> 00:01:44,679 Speaker 3: In fact, Jussie Boy ascid claims that Australian Super took 41 00:01:44,760 --> 00:01:47,440 Speaker 3: up to four years to assess almost seven thousand death 42 00:01:47,480 --> 00:01:48,480 Speaker 3: benefit claim that was. 43 00:01:48,480 --> 00:01:50,120 Speaker 1: Happening for over five years. 44 00:01:50,200 --> 00:01:53,120 Speaker 3: And to make matters worse, ac alleges that Australian Super 45 00:01:53,280 --> 00:01:57,400 Speaker 3: kept on taking fees from the accounts of dead customers. 46 00:01:56,880 --> 00:02:00,000 Speaker 1: And now assex warning, this isn't just an Australian super problem, 47 00:02:00,040 --> 00:02:01,880 Speaker 1: it's a super industry problem. 48 00:02:01,960 --> 00:02:03,280 Speaker 2: So what is the key learning here? 49 00:02:03,360 --> 00:02:05,800 Speaker 1: When you're a critical pillar of the Australian economy, of 50 00:02:05,840 --> 00:02:07,680 Speaker 1: the watchhog will be watching you. 51 00:02:07,720 --> 00:02:10,440 Speaker 3: See, Juzzy Boy, There is almost four trillion dollars worth 52 00:02:10,480 --> 00:02:12,799 Speaker 3: of super savings in Australia. 53 00:02:12,680 --> 00:02:14,440 Speaker 1: Right now, and that's more than the size of the 54 00:02:14,520 --> 00:02:15,960 Speaker 1: UK's annual GDP. 55 00:02:16,200 --> 00:02:19,680 Speaker 3: And this Australian supercase isn't even Acik's first rodeo with 56 00:02:19,800 --> 00:02:20,760 Speaker 3: death benefit payment. 57 00:02:20,840 --> 00:02:23,560 Speaker 1: No no, no. Acik ran a lawsuit against another superfund, 58 00:02:23,720 --> 00:02:27,119 Speaker 1: sea Bus, last November for similar failures. Now Acik knows 59 00:02:27,120 --> 00:02:30,040 Speaker 1: that poorly managed super funds and poor processes within super 60 00:02:30,040 --> 00:02:33,960 Speaker 1: funds can cost everyday Australians millions. In fact, acid reckons 61 00:02:34,000 --> 00:02:37,160 Speaker 1: Sea Buses failures cost the families of deceased members at 62 00:02:37,240 --> 00:02:38,639 Speaker 1: least twenty million backs. 63 00:02:38,680 --> 00:02:41,840 Speaker 3: So with Acik taking Australian super to court, Juzzy Boy, 64 00:02:41,880 --> 00:02:44,639 Speaker 3: other super funds are most likely shaking in their super 65 00:02:44,639 --> 00:02:45,600 Speaker 3: fund booties. 66 00:02:46,120 --> 00:02:49,880 Speaker 1: For our second story, Spotify pay ten billion US dollars 67 00:02:49,919 --> 00:02:52,280 Speaker 1: to the music industry in twenty twenty four, which was 68 00:02:52,320 --> 00:02:55,440 Speaker 1: their largest payout ever. Still not enough, according to many, 69 00:02:55,440 --> 00:02:57,320 Speaker 1: many many, So tell me more. Okay, So we know 70 00:02:57,360 --> 00:02:59,560 Speaker 1: that back in the day, if people not us, of course, 71 00:02:59,680 --> 00:03:02,640 Speaker 1: wanted music, they would acquire it in a creative way. 72 00:03:02,639 --> 00:03:06,680 Speaker 3: It could be napsterack cazar, LimeWire to download the song 73 00:03:06,800 --> 00:03:08,080 Speaker 3: illegally and be man. 74 00:03:08,120 --> 00:03:09,919 Speaker 1: It was kind of like playing Russia to roulette with 75 00:03:09,960 --> 00:03:11,880 Speaker 1: whether you'd get the song, a ripoff of the song, 76 00:03:12,040 --> 00:03:12,840 Speaker 1: or a virus. 77 00:03:13,160 --> 00:03:16,720 Speaker 3: Then Spotify came along as the og legal streaming platform 78 00:03:16,760 --> 00:03:17,440 Speaker 3: for music, and. 79 00:03:17,400 --> 00:03:20,080 Speaker 1: Since it launched, it's become the largest streaming platform in 80 00:03:20,120 --> 00:03:20,960 Speaker 1: the whole wide world. 81 00:03:21,040 --> 00:03:23,520 Speaker 3: At last count, Spotify had six hundred and seventy five 82 00:03:23,720 --> 00:03:26,440 Speaker 3: million users and two hundred and sixty three million paid 83 00:03:26,600 --> 00:03:27,560 Speaker 3: subscribers as well. 84 00:03:27,600 --> 00:03:30,000 Speaker 1: If you don't mind and now b man, Spotify's announced 85 00:03:30,000 --> 00:03:32,520 Speaker 1: it paid ten billion US dollars in royalties in twenty 86 00:03:32,520 --> 00:03:34,240 Speaker 1: twenty four to the music industry, and. 87 00:03:34,240 --> 00:03:36,480 Speaker 2: That is our world record. 88 00:03:36,920 --> 00:03:39,840 Speaker 1: Get this, Nearly fifteen hundred artists earn over one million 89 00:03:39,920 --> 00:03:42,480 Speaker 1: US dollars in royalties from Spotify just last year. 90 00:03:42,520 --> 00:03:44,680 Speaker 3: That's a pretty big jump from its payouts a decade ago, 91 00:03:44,720 --> 00:03:47,120 Speaker 3: which were ameasly one billion dollars, but. 92 00:03:47,160 --> 00:03:50,080 Speaker 1: That still hasn't stopped many in the music industry believing 93 00:03:50,200 --> 00:03:52,840 Speaker 1: they're being short changed by Spotify. 94 00:03:52,360 --> 00:03:54,520 Speaker 2: And co oh, so what is the key learning here? 95 00:03:54,640 --> 00:03:57,680 Speaker 1: The streaming economy's revolutionized how artists make money, but it's 96 00:03:57,680 --> 00:03:59,920 Speaker 1: also led to big debates about their compensation. 97 00:04:00,160 --> 00:04:03,040 Speaker 3: In the old days, artists made money through album sales 98 00:04:03,080 --> 00:04:04,560 Speaker 3: and radio plays. 99 00:04:04,200 --> 00:04:07,160 Speaker 1: But now music streaming is the main revenue source, but 100 00:04:07,240 --> 00:04:10,960 Speaker 1: the per stream payout is tiny. For context, Spotify pays 101 00:04:11,040 --> 00:04:15,320 Speaker 1: artists around zero point zero zero three to zero point 102 00:04:15,520 --> 00:04:18,680 Speaker 1: zero zero five cents per stream, and that means an 103 00:04:18,760 --> 00:04:21,640 Speaker 1: artist needs around two hundred and fifty thousand streams just 104 00:04:21,680 --> 00:04:23,000 Speaker 1: to make one thousand dollars. 105 00:04:23,080 --> 00:04:26,200 Speaker 3: And while some artists, especially the big names, they earn millions, 106 00:04:26,279 --> 00:04:28,320 Speaker 3: there are more than eight million artists on Spotify. 107 00:04:28,480 --> 00:04:30,880 Speaker 1: That means the smaller artists struggle. 108 00:04:30,520 --> 00:04:31,920 Speaker 2: To break even and Juzzy Boy. 109 00:04:32,000 --> 00:04:35,520 Speaker 3: As the music streaming platforms like Spotify they dominate the industry, 110 00:04:35,640 --> 00:04:39,520 Speaker 3: you can expect debate to continue raging. Luckily, no more 111 00:04:39,600 --> 00:04:41,080 Speaker 3: viruses from Kazar. 112 00:04:40,920 --> 00:04:43,640 Speaker 1: For our third and final story. Meta has been un 113 00:04:43,640 --> 00:04:46,280 Speaker 1: testing its own AI chip as it tries to swoop 114 00:04:46,320 --> 00:04:47,760 Speaker 1: in on in video's market. 115 00:04:47,960 --> 00:04:50,760 Speaker 3: Meta be looking over the fence at in videos multi 116 00:04:50,760 --> 00:04:53,599 Speaker 3: trillion dollar vow and be thinking give me a fat 117 00:04:53,640 --> 00:04:54,240 Speaker 3: slice of that. 118 00:04:54,480 --> 00:04:55,400 Speaker 2: Tell me more so we know. 119 00:04:55,480 --> 00:04:57,840 Speaker 1: Meta was formerly known as Facebook, which was founded by 120 00:04:57,960 --> 00:04:59,680 Speaker 1: part man putbot Mark Zuckerberg. 121 00:04:59,720 --> 00:05:03,960 Speaker 3: It's also the owner of the family of apps including Facebook, Instagram, WhatsApp, 122 00:05:04,040 --> 00:05:06,479 Speaker 3: and of course it's a little metaverse project that's. 123 00:05:06,320 --> 00:05:08,600 Speaker 1: Cost it more than thirty six billion US dollars. 124 00:05:08,640 --> 00:05:09,280 Speaker 2: But jaziboit. 125 00:05:09,400 --> 00:05:12,599 Speaker 3: Meta has moved on to the next shiny objects aimodels 126 00:05:12,640 --> 00:05:13,920 Speaker 3: and not just AI models. 127 00:05:14,279 --> 00:05:15,080 Speaker 2: No no, no, no no. 128 00:05:15,400 --> 00:05:18,160 Speaker 3: On top of its large language model named Lama, Meta 129 00:05:18,240 --> 00:05:20,960 Speaker 3: is looking to build its own in house AI chip. 130 00:05:21,040 --> 00:05:22,880 Speaker 1: The idea is that it would be used to train 131 00:05:22,960 --> 00:05:24,560 Speaker 1: its own AI system. 132 00:05:24,320 --> 00:05:28,320 Speaker 3: And if successful, it would ramp up production for wide scale. 133 00:05:28,040 --> 00:05:31,320 Speaker 1: Use and potentially become a major competitor to in Video. 134 00:05:31,400 --> 00:05:33,360 Speaker 1: The gloves are well and truly out and be man. 135 00:05:33,400 --> 00:05:35,279 Speaker 1: I do believe that has tried this once. 136 00:05:35,120 --> 00:05:36,320 Speaker 2: Before, correct a window. 137 00:05:36,360 --> 00:05:38,880 Speaker 3: Meta tried to build in house chips back in twenty 138 00:05:38,920 --> 00:05:41,120 Speaker 3: twenty two, but it failed, so it just ended. 139 00:05:40,960 --> 00:05:43,560 Speaker 1: Up buying ten billion dollars worth of invidious chips. 140 00:05:43,560 --> 00:05:44,800 Speaker 2: So what is the key learning here? 141 00:05:44,880 --> 00:05:47,680 Speaker 1: When companies spend billions on a product, they have two choices, 142 00:05:47,760 --> 00:05:49,800 Speaker 1: keep paying for it or build it out themselves. 143 00:05:49,839 --> 00:05:52,640 Speaker 3: It's a huge upfront investment, but if it's successful, it 144 00:05:52,680 --> 00:05:55,200 Speaker 3: can lead to major cost savings over the long run. 145 00:05:55,240 --> 00:05:57,279 Speaker 1: In fact, being Man, Meta expects to spend up to 146 00:05:57,360 --> 00:06:00,320 Speaker 1: sixty five billion US dollars on its AI infrastruy ructure 147 00:06:00,360 --> 00:06:01,640 Speaker 1: in twenty twenty five alone. 148 00:06:01,720 --> 00:06:03,240 Speaker 2: I'd be saying that's a lot of money. 149 00:06:03,279 --> 00:06:05,600 Speaker 1: And although they failed in the past, Metas hoping it's 150 00:06:05,640 --> 00:06:09,520 Speaker 1: AI chip development mirrors what Amazon did with AWS. Yep. 151 00:06:09,560 --> 00:06:13,800 Speaker 3: Amazon initially built AWS to support its own internal e 152 00:06:13,880 --> 00:06:15,800 Speaker 3: commerce operations. 153 00:06:15,120 --> 00:06:17,880 Speaker 1: But then it realized it could sell this cloud infrastructure 154 00:06:17,920 --> 00:06:18,919 Speaker 1: to other businesses, and. 155 00:06:18,920 --> 00:06:21,720 Speaker 3: They turned it into a multi billion dollar empire, worth 156 00:06:21,720 --> 00:06:23,960 Speaker 3: more than sixty five percent of its operating income. 157 00:06:24,040 --> 00:06:26,360 Speaker 1: So be man. If Metas chips perform well, it means 158 00:06:26,360 --> 00:06:28,200 Speaker 1: they could cut their dependence on in video. 159 00:06:28,320 --> 00:06:30,279 Speaker 2: They could also cut their infrastructure costs, and. 160 00:06:30,279 --> 00:06:32,479 Speaker 1: They could even sell their chips to other companies in 161 00:06:32,480 --> 00:06:34,840 Speaker 1: the future. But Jazi boy, it all comes down to execution, 162 00:06:35,040 --> 00:06:37,200 Speaker 1: and given this is not their core business, it'll be 163 00:06:37,279 --> 00:06:39,479 Speaker 1: interesting to see if they can match the quality even 164 00:06:39,520 --> 00:06:42,720 Speaker 1: video for the second times, get your phones out, turn 165 00:06:42,760 --> 00:06:45,360 Speaker 1: your notifications on, and be the first person to answer 166 00:06:45,400 --> 00:06:48,240 Speaker 1: three business or finance questions correctly in the Blucks app, 167 00:06:48,240 --> 00:06:49,599 Speaker 1: and fifty bucks could be yours. 168 00:06:49,720 --> 00:06:53,080 Speaker 3: Thanks for listening, and we'll see you on Monday.