1 00:00:05,240 --> 00:00:06,600 Speaker 1: This is what the flux. 2 00:00:06,680 --> 00:00:08,960 Speaker 2: I'm bred and I'm justin and it's Monday, the twenty 3 00:00:09,000 --> 00:00:10,080 Speaker 2: eighth of January. 4 00:00:09,760 --> 00:00:12,760 Speaker 1: Juzzy Boy. A new EV consumer survey by Car Sales 5 00:00:12,800 --> 00:00:17,480 Speaker 1: shows that EV consideration amongst Australians has flatlined at thirty 6 00:00:17,520 --> 00:00:21,000 Speaker 1: six percent. The main concern, Well, Ozzie's are very worried 7 00:00:21,079 --> 00:00:24,480 Speaker 1: about the battery life and longevity and my iPhone battery 8 00:00:24,560 --> 00:00:28,000 Speaker 1: is anything like EV battery. I really understand the concern. 9 00:00:28,200 --> 00:00:29,600 Speaker 2: I get it as well. Be man, you don't want 10 00:00:29,600 --> 00:00:30,920 Speaker 2: to be stuck in the middle of nowhere. We know 11 00:00:31,000 --> 00:00:33,159 Speaker 2: EV battery. No wait, fx am. As we end the 12 00:00:33,200 --> 00:00:35,800 Speaker 2: month of January, when you set new financial goal, now's 13 00:00:35,800 --> 00:00:37,000 Speaker 2: the time to have a look at how are you 14 00:00:37,040 --> 00:00:38,800 Speaker 2: spending and savings going for the month. If you want 15 00:00:38,800 --> 00:00:40,920 Speaker 2: to done in the easiest way possible, in the Flux 16 00:00:40,920 --> 00:00:43,000 Speaker 2: budget tool, you can connect your ban accounts and see 17 00:00:43,040 --> 00:00:45,360 Speaker 2: all your spending and saving in the one spot in 18 00:00:45,440 --> 00:00:47,440 Speaker 2: under thirty seconds. If you want to track your spending 19 00:00:47,479 --> 00:00:49,479 Speaker 2: the easiest way, make sure to download the Flux out 20 00:00:49,520 --> 00:00:50,320 Speaker 2: and check out the budgeting. 21 00:00:50,400 --> 00:00:53,199 Speaker 1: All three massive stories today, Juzzy Boy, let's do it 22 00:00:53,240 --> 00:00:56,800 Speaker 1: for our first ko the sports streaming platform is jacking 23 00:00:56,880 --> 00:00:59,360 Speaker 1: up their prices by fifteen percent as it's a new 24 00:00:59,400 --> 00:01:02,760 Speaker 1: owner looks to squeeze more value from live sport. 25 00:01:02,880 --> 00:01:04,720 Speaker 2: That's a real love hate relationship with kob Man. 26 00:01:04,800 --> 00:01:06,880 Speaker 1: So tell me all, all right. So KO is the 27 00:01:06,920 --> 00:01:12,000 Speaker 1: Australian sports streaming platform creded by Foxtel back in twenty eighteen. 28 00:01:11,720 --> 00:01:13,759 Speaker 2: And over the past seven years it's grown to nearly 29 00:01:13,880 --> 00:01:15,760 Speaker 2: one and a half million subscribers. 30 00:01:15,840 --> 00:01:19,119 Speaker 1: We're talking AFL, NRL and cricket and a whole lot 31 00:01:19,160 --> 00:01:19,600 Speaker 1: more as well. 32 00:01:19,600 --> 00:01:21,880 Speaker 2: Now, be man, you may remember that Ko's parent company, 33 00:01:21,920 --> 00:01:25,120 Speaker 2: Foxfel was sold to Dezone three point four billion dollars 34 00:01:25,160 --> 00:01:27,520 Speaker 2: in late twenty twenty four and now de Zone is 35 00:01:27,520 --> 00:01:30,200 Speaker 2: pushing for stronger returns from KO, so it's jacking up 36 00:01:30,240 --> 00:01:33,240 Speaker 2: dem prices. We'd been talking a jump of roughly fifteen percent, 37 00:01:33,400 --> 00:01:36,720 Speaker 2: meaning KO costs get this forty six dollars a month, 38 00:01:36,800 --> 00:01:38,880 Speaker 2: a very large number. Juzzy boy, it is how a 39 00:01:38,959 --> 00:01:42,639 Speaker 2: Zone claim. The reason is because of rising sports broadcast rights. 40 00:01:42,800 --> 00:01:45,880 Speaker 1: And might I remind you that Foxtel, alongside seven and 41 00:01:46,000 --> 00:01:48,120 Speaker 1: Telstrap paid four and a half billion dollars for the 42 00:01:48,120 --> 00:01:48,880 Speaker 1: AFL rights. 43 00:01:48,920 --> 00:01:51,200 Speaker 2: They also paid one and a half billion alongside seven 44 00:01:51,240 --> 00:01:52,080 Speaker 2: for the cricket. 45 00:01:51,800 --> 00:01:55,000 Speaker 1: Rights, and they also said that the production costs are growing. 46 00:01:55,200 --> 00:01:58,400 Speaker 1: They're more focused on chasing yield from existing customers over 47 00:01:58,440 --> 00:02:00,960 Speaker 1: growth from new ones. So what is the key learning here? 48 00:02:01,120 --> 00:02:04,320 Speaker 1: Yield overgrowth is when a business focuses on making more 49 00:02:04,320 --> 00:02:07,520 Speaker 1: money from the customers it currently has instead of chasing 50 00:02:07,560 --> 00:02:08,800 Speaker 1: lots of new customers. 51 00:02:08,840 --> 00:02:11,560 Speaker 2: And it's a shift that many mature subscription businesses make 52 00:02:11,720 --> 00:02:13,919 Speaker 2: once their rapid user growth starts to slow. 53 00:02:14,000 --> 00:02:16,000 Speaker 1: We know how it generally works in the early days. 54 00:02:16,080 --> 00:02:18,800 Speaker 1: Tech platforms or media platforms in this case will typically 55 00:02:18,840 --> 00:02:22,360 Speaker 1: chase subscribers at any cost. They'll offer cheap pricing, they'll 56 00:02:22,360 --> 00:02:25,320 Speaker 1: dish out free trials, now'll pump out the heavy marketing 57 00:02:25,400 --> 00:02:27,960 Speaker 1: and obviously this stage is really all about growth and scale. 58 00:02:28,000 --> 00:02:30,880 Speaker 2: But once a service hit saturation, the focus often changes 59 00:02:30,960 --> 00:02:33,720 Speaker 2: to make a more mola from the customers they already have. 60 00:02:33,880 --> 00:02:36,200 Speaker 1: And given the cost of the broadcast rights to Zone 61 00:02:36,360 --> 00:02:38,839 Speaker 1: is very focused on making back some of that dough 62 00:02:38,960 --> 00:02:41,320 Speaker 1: and the man they ain't the only ones now stand. 63 00:02:41,360 --> 00:02:44,560 Speaker 1: Sport recently lifted their prices by nineteen percent after they 64 00:02:44,560 --> 00:02:45,920 Speaker 1: added the Premier League. 65 00:02:45,680 --> 00:02:48,440 Speaker 2: And competitors like Paramount Plus and Disney Plus. They're also 66 00:02:48,440 --> 00:02:49,880 Speaker 2: on the hunt for more live sport too. 67 00:02:49,960 --> 00:02:52,799 Speaker 1: The thinking is that small price increases can drive profits 68 00:02:52,880 --> 00:02:56,160 Speaker 1: far faster than chasing new users in a crowded market. 69 00:02:56,160 --> 00:02:58,480 Speaker 2: The risk is if they push prices too far, it 70 00:02:58,560 --> 00:03:02,320 Speaker 2: might force customers to chair. For our second story, ByteDance 71 00:03:02,320 --> 00:03:05,239 Speaker 2: has officially sold off its US based TikTok business to 72 00:03:05,280 --> 00:03:07,720 Speaker 2: a range of big US investors and tech firms to 73 00:03:07,880 --> 00:03:10,400 Speaker 2: stay alive and user scrolling in the country. 74 00:03:10,520 --> 00:03:12,360 Speaker 1: Really didn't think we'd ever get here, Jazzi boys, So 75 00:03:12,400 --> 00:03:12,880 Speaker 1: tell me more. 76 00:03:12,880 --> 00:03:14,880 Speaker 2: Okay, So we own to TikTok, the social media app 77 00:03:14,880 --> 00:03:17,520 Speaker 2: that's taken the world by an algorithmic. 78 00:03:16,880 --> 00:03:20,560 Speaker 1: Storm faster social app to hit one billion monthly users 79 00:03:20,600 --> 00:03:20,880 Speaker 1: and in. 80 00:03:20,800 --> 00:03:23,200 Speaker 2: Twenty twenty five b man the average TikTok user watched 81 00:03:23,240 --> 00:03:25,720 Speaker 2: six hundred hours on the platform, more than one and 82 00:03:25,760 --> 00:03:27,840 Speaker 2: a half hours per day. But the elephant in the 83 00:03:27,919 --> 00:03:30,240 Speaker 2: room here is that TikTok is owned by Byedance, which 84 00:03:30,280 --> 00:03:33,280 Speaker 2: is a Chinese tech giant, and Bydance has been facing 85 00:03:33,320 --> 00:03:35,520 Speaker 2: a lot of heat in the US since about. 86 00:03:35,280 --> 00:03:38,120 Speaker 1: Twenty twenty, mainly because of concerns that American user data 87 00:03:38,160 --> 00:03:39,520 Speaker 1: could be accessed by China. 88 00:03:39,600 --> 00:03:41,520 Speaker 2: Remember there was a hot minute early last year when 89 00:03:41,560 --> 00:03:43,960 Speaker 2: TikTok and the US was shut down for about twenty 90 00:03:43,960 --> 00:03:44,560 Speaker 2: four hours. 91 00:03:44,720 --> 00:03:46,640 Speaker 1: Yeah, I do. It was all part of the US 92 00:03:46,720 --> 00:03:49,880 Speaker 1: government's threat to TikTok either sell to the US or 93 00:03:49,920 --> 00:03:50,640 Speaker 1: face shutdown. 94 00:03:50,680 --> 00:03:53,320 Speaker 2: And now Bydance has officially finalized a deal to sell 95 00:03:53,360 --> 00:03:55,920 Speaker 2: its US business to a range of US investors, including 96 00:03:55,920 --> 00:03:58,200 Speaker 2: Oracle and private equity player silver. 97 00:03:58,040 --> 00:04:00,760 Speaker 1: Lake and Byte. Dance will retain just to twenty percent 98 00:04:00,800 --> 00:04:02,800 Speaker 1: of the new US company. 99 00:04:02,400 --> 00:04:04,280 Speaker 2: And the man the US government got what they wanted 100 00:04:04,320 --> 00:04:07,840 Speaker 2: because the data will now be hosted on Oracle's American cloud. 101 00:04:07,920 --> 00:04:09,040 Speaker 1: And how much are we talking here? 102 00:04:09,080 --> 00:04:11,760 Speaker 2: Juzi boy Ll reports estimate that TikTok Us is valued 103 00:04:11,760 --> 00:04:14,440 Speaker 2: at approximately fourteen billion US dollars. 104 00:04:14,560 --> 00:04:16,880 Speaker 1: Sounds like a bit of a steal for these new investors. 105 00:04:17,000 --> 00:04:18,280 Speaker 2: So what is the key learning here? 106 00:04:18,400 --> 00:04:21,080 Speaker 1: Valuing part of a platform is far harder than valuing 107 00:04:21,120 --> 00:04:21,800 Speaker 1: the entire thing. 108 00:04:22,000 --> 00:04:24,720 Speaker 2: When you spit out the cold hard numbers of TikTok usb, man, 109 00:04:24,800 --> 00:04:26,880 Speaker 2: the report at fourteen bill looks. 110 00:04:26,720 --> 00:04:30,400 Speaker 1: Very light, all right, run me through the numbers, statman. 111 00:04:30,320 --> 00:04:32,440 Speaker 2: Well, there are over two hundred million TikTok users in 112 00:04:32,480 --> 00:04:33,160 Speaker 2: the US. 113 00:04:33,040 --> 00:04:36,320 Speaker 1: Which is about sixty percent of all US citizens. 114 00:04:35,920 --> 00:04:38,600 Speaker 2: And TikTok generates more than ten billion US dollars per 115 00:04:38,640 --> 00:04:40,760 Speaker 2: annum in revenue from the US alone. Now, if we 116 00:04:40,839 --> 00:04:43,880 Speaker 2: compare that against competitors like Meta, which trades about ten 117 00:04:43,920 --> 00:04:46,440 Speaker 2: times at sales, and Alphabet, which trades it about eight 118 00:04:46,480 --> 00:04:47,720 Speaker 2: times its sales. 119 00:04:47,400 --> 00:04:50,040 Speaker 1: This would mean based on revenue alone, TikTok Us could 120 00:04:50,080 --> 00:04:52,680 Speaker 1: be valued at eighty to one hundred billion dollars, and 121 00:04:52,800 --> 00:04:53,600 Speaker 1: other analysts have. 122 00:04:53,640 --> 00:04:56,280 Speaker 2: Estimated that TikTok Us is worth closer to forty bill 123 00:04:56,320 --> 00:04:57,680 Speaker 2: if it doesn't include the algorithm. 124 00:04:57,720 --> 00:04:59,320 Speaker 1: So why the giant gap year juzzy boy. 125 00:04:59,360 --> 00:05:02,320 Speaker 2: Well, when government moments and regulation get involved, it kind 126 00:05:02,320 --> 00:05:04,839 Speaker 2: of becomes more about staying alive rather than getting the 127 00:05:04,839 --> 00:05:05,400 Speaker 2: best price. 128 00:05:05,520 --> 00:05:07,839 Speaker 1: So this looks less like fair value and more like 129 00:05:07,920 --> 00:05:09,920 Speaker 1: the price of compromise to remain alive. 130 00:05:10,600 --> 00:05:13,400 Speaker 2: For our third and final story, the price of gold 131 00:05:13,440 --> 00:05:16,320 Speaker 2: and silver have both hit record highs as investors have 132 00:05:16,440 --> 00:05:18,800 Speaker 2: ditched the US dollar for the shiny medals. 133 00:05:18,920 --> 00:05:21,280 Speaker 1: Shiny rocks are having a really serious moment here, So 134 00:05:21,279 --> 00:05:21,839 Speaker 1: tell me more. 135 00:05:21,839 --> 00:05:23,840 Speaker 2: Okay, So gold, we know b man has been used 136 00:05:23,880 --> 00:05:26,080 Speaker 2: as a store of value for thousands of years. 137 00:05:26,240 --> 00:05:27,400 Speaker 1: And I know you love, We're going to teach you 138 00:05:27,440 --> 00:05:30,400 Speaker 1: some history. Juzzy boy. We're talking back in three thousand 139 00:05:30,440 --> 00:05:33,080 Speaker 1: BC when gold was first used as a store of value, 140 00:05:33,120 --> 00:05:35,360 Speaker 1: back in ancient Mesopotamia and Egypt. 141 00:05:35,440 --> 00:05:37,040 Speaker 2: Did not expect a history lesson today. 142 00:05:37,760 --> 00:05:40,160 Speaker 1: But in more recent times, gold has been considered a 143 00:05:40,320 --> 00:05:41,400 Speaker 1: safe haven investment. 144 00:05:41,680 --> 00:05:44,160 Speaker 2: It's what investors turn to when confidence in governments and 145 00:05:44,200 --> 00:05:46,479 Speaker 2: currencies or markets start to wobble. 146 00:05:46,560 --> 00:05:48,800 Speaker 1: And right now there's a whole lot of wobbling going on. 147 00:05:48,960 --> 00:05:51,320 Speaker 2: And that's why gold prices have smashed through five thousand 148 00:05:51,440 --> 00:05:53,479 Speaker 2: US dollars an ounce for the first time ever. 149 00:05:53,440 --> 00:05:56,240 Speaker 1: And only gold. Silver has also smashed through the one 150 00:05:56,320 --> 00:05:58,280 Speaker 1: hundred and ten US dollar an ounce mark for the 151 00:05:58,360 --> 00:05:59,240 Speaker 1: very first time. 152 00:05:59,080 --> 00:06:01,640 Speaker 2: And b Man Gold is coming off its best annual 153 00:06:01,640 --> 00:06:04,480 Speaker 2: performance since nineteen seventy nine. And while this is good 154 00:06:04,560 --> 00:06:07,120 Speaker 2: for gold holders, it's also a signal that investors are 155 00:06:07,120 --> 00:06:09,520 Speaker 2: feeling pretty uneasy about the global economy. 156 00:06:09,560 --> 00:06:13,240 Speaker 1: And there is a lot of debasement trading happening right now. 157 00:06:13,800 --> 00:06:15,160 Speaker 2: So what is the key learning here? 158 00:06:15,279 --> 00:06:18,840 Speaker 1: Debasement trading is an investment strategy where investors shift their 159 00:06:18,839 --> 00:06:22,200 Speaker 1: capital from fit currencies and traditional assets into hard assets 160 00:06:22,480 --> 00:06:23,960 Speaker 1: like your friend gold, and. 161 00:06:23,920 --> 00:06:27,239 Speaker 2: Governments borrow heavily and they run up huge debts. Investors 162 00:06:27,279 --> 00:06:29,919 Speaker 2: start to worry the value of money will slowly but 163 00:06:30,000 --> 00:06:31,960 Speaker 2: surely be watered down over time. 164 00:06:32,040 --> 00:06:34,520 Speaker 1: So instead of holding cash or currencies that might lose 165 00:06:34,600 --> 00:06:38,279 Speaker 1: buying power, investors move into assets that cannot be easily 166 00:06:38,320 --> 00:06:39,119 Speaker 1: created or printed. 167 00:06:39,160 --> 00:06:41,520 Speaker 2: Throw on top of that a bit of geopolitical instability, 168 00:06:41,560 --> 00:06:44,359 Speaker 2: and you have a recipe for the shiny metals Fox Sam. 169 00:06:44,360 --> 00:06:46,240 Speaker 2: If you're wondering where all your money has gone in 170 00:06:46,279 --> 00:06:48,640 Speaker 2: the month of January, Flux app is the place to 171 00:06:48,680 --> 00:06:50,520 Speaker 2: find out in just thirty seconds if you connect your 172 00:06:50,520 --> 00:06:52,279 Speaker 2: accounts to make sure to download the Flux app if 173 00:06:52,320 --> 00:06:53,360 Speaker 2: you want to get on top of your money. 174 00:06:53,440 --> 00:06:55,719 Speaker 1: Thanks for listening and we'll see you on Friday.