Latest / What the Flux / Shein Australia overtakes local retailers | Google could be split up | ARN Media's new AI host

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Shein Australia overtakes local retailers | Google could be split up | ARN Media's new AI host · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Wednesday. There twenty
• 0:09
  Speaker 2: third of April. Juzzy boy.
• 0:10
  Speaker 1: Millions of people are chatting with AI every single day,
• 0:13
  Speaker 1: and many are being very polite about it, you know,
• 0:16
  Speaker 1: just in case I Robot becomes a true story. Forget
• 0:18
  Speaker 1: this one. Open AI's Sam Oltman says, all those pleases
• 0:21
  Speaker 1: and thank you are costing them tens of millions in electricity. So,
• 0:25
  Speaker 1: josey boy, the real question is would you rather stay
• 0:27
  Speaker 1: on AI's good side or help open AI save on
• 0:29
  Speaker 1: its power bill.
• 0:30
  Speaker 2: AI is good side, no doubt about it. Fucks down
• 0:34
  Speaker 2: with the liberation, take tariffs on and off, then on
• 0:36
  Speaker 2: then off. The talks of her a session have resurfaced
• 0:39
  Speaker 2: because many people are concerned. So if you want to
• 0:41
  Speaker 2: learn more about the economy and what might be happening,
• 0:44
  Speaker 2: make sure to download the Flux app to check it out.
• 0:46
  Speaker 1: Three marvelous stories today, juzzy boy, let's do it for
• 0:49
  Speaker 1: our first. She In the fast fashion retailer has seen
• 0:53
  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
• 1:02
  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
• 1:06
  Speaker 2: when TikTok creators started flooding our feeds with hashtag she
• 1:10
  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
• 1:17
  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.
• 1:22
  Speaker 2: Other retailers are still mood boarding their ideas well. She
• 1:25
  Speaker 2: In's already shipped the product.
• 1:26
  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
• 1:39
  Speaker 1: Accent Group, which owns hype Platypus Style Runner.
• 1:42
  Speaker 2: But be man, it wasn't just growing revenue, because she
• 1:44
  Speaker 2: In also announced a thirty percent jump in.
• 1:46
  Speaker 1: Its profit as well, up to just over fifteen million bucks.
• 1:49
  Speaker 2: The reason a whole lot of customers who've returned again
• 1:52
  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.
• 1:58
  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
• 2:03
  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
• 2:09
  Speaker 2: its huge number of loyal repeat Aussie shoppers.
• 2:12
  Speaker 1: In fact, forty two percent of their customers are buying
• 2:15
  Speaker 1: from them multiple times a year, and.
• 2:16
  Speaker 2: Each repeat customer costs less to acquire and brings in
• 2:19
  Speaker 2: more revenue.
• 2:20
  Speaker 1: She In pulls them in with cheap prices.
• 2:22
  Speaker 2: But then keeps customers coming back with constant your rivals
• 2:25
  Speaker 2: and also those annoying limited time offers that are driven
• 2:28
  Speaker 2: by algorithms.
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  Speaker 1: She In may only be making a few bucks per item,
• 2:30
  Speaker 1: but when customers come back again and again and again,
• 2:33
  Speaker 1: it really adds up.
• 2:34
  Speaker 2: Class a case of low margins, high volume, and a huge,
• 2:37
  Speaker 2: huge payoff. For our second story, a US judge has
• 2:40
  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
• 2:47
  Speaker 2: ad industry.
• 2:48
  Speaker 1: Grab your popcorn, juzzy boy, because this is a big one.
• 2:51
  Speaker 1: What's going on here?
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  Speaker 2: Okay? So Google started as the search engine we all
• 2:54
  Speaker 2: know and love or love to hate. Yeah, but be man.
• 2:56
  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
• 3:01
  Speaker 1: US dollars to companies like Apple and Samsung to become
• 3:04
  Speaker 1: their default search engines.
• 3:06
  Speaker 2: And be man. This has been a big driver for
• 3:07
  Speaker 2: Google's AD revenue, which generated more than three hundred and
• 3:10
  Speaker 2: forty eight billion US dollars just last year.
• 3:13
  Speaker 1: Now get this one, jazy boy. A US judge has
• 3:15
  Speaker 1: already ruled Google broke anti trust laws to dominate Internet search.
• 3:18
  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.
• 3:24
  Speaker 1: In a one hundred and fifteen page of bedtime reading document,
• 3:27
  Speaker 1: the judge said that Google had broken the law to
• 3:30
  Speaker 1: build its dominance and be man.
• 3:31
  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.
• 3:39
  Speaker 1: Interesting, So what is the key learning here? Sometimes monopolies
• 3:43
  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.
• 3:52
  Speaker 1: And the advertising technology world runs behind the scenes. When
• 3:55
  Speaker 1: you load a website, split second auctions decide what ads
• 3:58
  Speaker 1: you see. Google has its fingers in all the piles.
• 4:00
  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
• 4:19
  Speaker 1: imagine Google's just going to sit there and accept these claims.
• 4:22
  Speaker 1: So what are I arguing?
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  Speaker 2: Well, they claim that customers chose Google because their products
• 4:27
  Speaker 2: were so so good.
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  Speaker 1: But the court found that publishers had little choice because
• 4:30
  Speaker 1: Google dominated the market.
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  Speaker 2: So, b Man, it's a reminder that when a company
• 4:34
  Speaker 2: controls the full ecosystem, it opens itself up to being broken.
• 4:37
  Speaker 1: Apart for our third and final story, arn Media is
• 4:41
  Speaker 1: facing another scandal after it has admitted to using an
• 4:44
  Speaker 1: AI generated personality as one of its daytime radio hosts.
• 4:48
  Speaker 2: AARN can't catch a break at the moment, be Man,
• 4:51
  Speaker 2: so tell me more well.
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  Speaker 1: ARN Media is the Australian media company founded in nineteen
• 4:55
  Speaker 1: eighty eight.
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  Speaker 2: They've got more than fifty eight radio stations, including Kiss, Gold,
• 4:59
  Speaker 2: Cat and iHeart in Australia.
• 5:01
  Speaker 1: But Jazzy Boy. The past twelve months have not been
• 5:03
  Speaker 1: a happy time in the ARN studio. Nope, their share
• 5:06
  Speaker 1: price has fallen by more than thirty one percent. They
• 5:08
  Speaker 1: failed in their bid to acquire Southern Cross Media, the
• 5:11
  Speaker 1: owner of Triple M and Hit FM, and their.
• 5:13
  Speaker 2: Headline hosts Kyle and JACKIEO have been flopping in the
• 5:15
  Speaker 2: Melbourne market and it now seems like ARN is in
• 5:18
  Speaker 2: the spotlight once again with their radio station Cata CAT
• 5:21
  Speaker 2: is aarn's digital hip hop radio station.
• 5:23
  Speaker 1: I'll give You the Rundown. Last year, CATA introduced very
• 5:26
  Speaker 1: quietly their new on air talent who hosts their eleven
• 5:29
  Speaker 1: AM to three pm show.
• 5:30
  Speaker 2: She goes by the name Thi and she's been nixing
• 5:33
  Speaker 2: some absolute bangers that.
• 5:34
  Speaker 1: THI happens to conveniently rhyme with the word AI. Coincidence
• 5:39
  Speaker 1: be then I think notap So now ARN and Cata
• 5:42
  Speaker 1: have admitted to using an AI audio platform as their
• 5:45
  Speaker 1: daytime host.
• 5:45
  Speaker 2: They use a tool that turns text into thigh speech.
• 5:48
  Speaker 1: The outest part Thy's voice and likeness is modeled on
• 5:51
  Speaker 1: an ARN employee in the finance team.
• 5:54
  Speaker 2: And now be Man. The lack of transparency has led
• 5:56
  Speaker 2: to quite a lot of internal concerns. So what's the
• 5:58
  Speaker 2: key learning here? AI might say your money, but it
• 6:00
  Speaker 2: can also cost you credibility.
• 6:02
  Speaker 1: According to r MIT research, just six point four percent
• 6:05
  Speaker 1: of Australians felt comfortable with AI generated news presenters and
• 6:08
  Speaker 1: be Man. That figure only rose to nine point six
• 6:10
  Speaker 1: percent when the AI use was disclosed, So that means
• 6:13
  Speaker 1: that more than ninety percent of Australians get the ick
• 6:15
  Speaker 1: when a robot reads the news.
• 6:17
  Speaker 2: Exactly and be Man. That's exactly why Cater's decision to
• 6:20
  Speaker 2: run an AI host for over six months without ever
• 6:22
  Speaker 2: telling listeners has caused some serious controversy. So companies experimenting
• 6:26
  Speaker 2: with AI need to be upfront with how they're using this.
• 6:29
  Speaker 1: Ar or risk losing the audience as they're actually trying.
• 6:32
  Speaker 2: To serve blux'mam, the big R word is on everyone's
• 6:34
  Speaker 2: lips right now. Is it going to happen in Australia,
• 6:37
  Speaker 2: in the US and around the world. We cover them
• 6:39
  Speaker 2: all in the Flux out to make sure to download
• 6:41
  Speaker 2: the app and check it all out.
• 6:42
  Speaker 1: Thanks for listening and we'll see you on Monday after
• 6:45
  Speaker 1: the public holiday on Friday,