Latest / What the Flux / Kyle & Jackie O's downfall sparks ARN Media | Audible faces audiobook competitor | Aussie airports are fleecing their visitors

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Kyle & Jackie O's downfall sparks ARN Media | Audible faces audiobook competitor | Aussie airports are fleecing their visitors · What the Flux

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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 Friday the sixth
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  Speaker 2: The March.
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  Speaker 3: Chasey boy Oh Zimbig may be trending, but so is
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  Speaker 3: Extra Block. The number of fast food outlet's opening in
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  Speaker 3: Australia hit a decade high in twenty twenty hour and
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  Speaker 3: the chain's opening the most outlets that would be Zambrero
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  Speaker 3: and Guzman Egomes, followed by KFC, Maki D's and Subdogs
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  Speaker 3: Fox Mam.
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  Speaker 2: The f one is live this weekend in Melbourne. But
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  Speaker 2: Formula one isn't just about fast cars. It's a multi
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  Speaker 2: billion dollar business. We share the three main sources of
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  Speaker 2: Formula one team income in the Flux app today and
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  Speaker 2: it is big. So if you want to learn more
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  Speaker 2: about f one before the weekend, make sure to download
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  Speaker 2: the Flux app and check out our latest.
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  Speaker 3: Article three Speedy Stories Today July Boy, Let's do it
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  Speaker 3: for our first. Arn Media, the radio company behind Kiss
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  Speaker 3: and Gold FM, has seen its share price jump over
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  Speaker 3: five percent after the.
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  Speaker 1: Fallout of the Kyle and Jackie Osho.
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  Speaker 2: Drama on the airwaves. Be man, what is going on here?
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  Speaker 3: So aarn Media is an Australian media company that owns
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  Speaker 3: the commercial FM radio networks Kiss and Goal.
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  Speaker 2: It's one of the biggest radio plays in the country.
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  Speaker 2: Earlier this week, Jackie Henderson, who's one half of the
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  Speaker 2: Carl and JACKIEO Show, officially courted quits.
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  Speaker 3: She said that she cannot continue to work with mister
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  Speaker 3: Kyle Sandalance.
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  Speaker 2: And what sparked this broadcast breakdown?
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  Speaker 3: Well, Kyle said live on air that Jackio was off
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  Speaker 3: with the fairies and said that her interest in astrology
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  Speaker 3: made her almost unworkable. Safe to say. The comment didn't
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  Speaker 3: land well. JACKIEO terminated her contract. AARN suspended Sandaland for
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  Speaker 3: fourteen days.
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  Speaker 2: And warned him that his multimillion dollar contract could be
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  Speaker 2: terminated if the breach wasn't remedied within two weeks.
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  Speaker 3: But here's the kick at Jasie Waite. AARN Jet Brice
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  Speaker 3: jumped five eight percent the next.
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  Speaker 2: Morning, and this is the company who shares have fallen
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  Speaker 2: forty three percent over the past year.
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  Speaker 3: So investors are essentially saying, maybe Kyle was the problem
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  Speaker 3: and this breakup could be the reset that ARN needs.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: Locking in a mega contract can feel like a win
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  Speaker 3: until it starts eating you alive.
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  Speaker 2: In aarn's case, Kyle and JACKIEO were on a monster
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  Speaker 2: two hundred million dollar a year contract that ran to
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  Speaker 2: twenty thirty four.
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  Speaker 3: That's about twenty million bucks a year in talent costs
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  Speaker 3: for just two humanoids.
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  Speaker 2: Now, be man, let's put that into perspective. Aarn's full
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  Speaker 2: year profit came in at just over six million dollars.
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  Speaker 3: That means Kyl and Jackio's annual contract was more than
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  Speaker 3: three times aarn's entire annual profit and use Wait, that's
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  Speaker 3: exactly why ARN share price had been hammered over.
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  Speaker 1: The past year.
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  Speaker 2: Yeah, the market worried AARN had locked itself into a
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  Speaker 2: mega contract the business just couldn't afford right now. But
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  Speaker 2: now with Jackio's departure, the market is seeing a potential
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  Speaker 2: escape route, and that means ARN could finally reset its
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  Speaker 2: talent costs to match the shrinking size of commercial radio.
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  Speaker 1: And that's why the share price popped.
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  Speaker 2: For our second story, Audible, Amazon's audiobook giant has just
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  Speaker 2: launched a cheaper subscription plan for the first time because
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  Speaker 2: it faces a major threat from Spotify.
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  Speaker 3: So all agree here, listening to a book is most
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  Speaker 3: definitely the same as reading.
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  Speaker 1: For now it's not telling void.
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  Speaker 2: Okay, so we know. Audible is Amazon's audiobook platform and
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  Speaker 2: is basically the reason millions of people now read while
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  Speaker 2: doing the dishes or walking the doggo. It was actually
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  Speaker 2: found under Duck in ninety five, but Amazon snapped it
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  Speaker 2: up in two thousand and eight for around three hundred
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  Speaker 2: million US dollars.
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  Speaker 3: Today, Audible is the world's largest producer and distributor of audiobooks.
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  Speaker 3: We're talking over eight hundred thousand titles and the business
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  Speaker 3: model has been pretty simple. Yeah, they charge a monthly
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  Speaker 3: fee fifty ninety nine in Australia, and this gives subscribers
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  Speaker 3: one credit to keep an audiobook forever.
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  Speaker 1: Even if you cancel. The audiobook is yours.
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  Speaker 2: But now Audible has done a widespread release of a
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  Speaker 2: new plan that allows you to listen all you want
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  Speaker 2: each month and it's cheaper. Interesting Josey boys, how does
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  Speaker 2: it work? Well, you don't get monthly credits to own
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  Speaker 2: a title. It's effectively a streaming style model.
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  Speaker 3: So if it takes you two months to finish a
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  Speaker 3: twenty five hour audiobook about productivity that you'll definitely procrastinate on,
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  Speaker 3: you'll be paying for month two and three and four.
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  Speaker 2: Yeah, and then this is clearly aimed at one competitor,
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  Speaker 2: in particular, Spotify ye.
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  Speaker 3: Spotify rolled out audiobook access for its premium subscribers back
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  Speaker 3: in twenty twenty three, and it's.
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  Speaker 2: Been aggressively pushing into the audiobook market ever since.
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  Speaker 3: So Audible is basically saying you're ont a streaming style
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  Speaker 3: audiobook experience, no worries, We've got one too.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: When a new competitor enters your turf, standing still is
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  Speaker 3: not an option yet.
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  Speaker 2: For the last decade, Audible had the audiobook space largely
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  Speaker 2: to itself.
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  Speaker 3: But when Spotify bundled audiobooks into its existing music subscription,
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  Speaker 3: it suddenly made audiobooks accessible to over six hundred million
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  Speaker 3: uses worldwide without them paying an extra cent, and clearly
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  Speaker 3: it was working for Spotify yep. Spotify said in October
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  Speaker 3: last year that more than half of its two hundred
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  Speaker 3: and eighty one million premium subscribers have engaged with an audiobook,
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  Speaker 3: and the number of users listening to audiobooks has written
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  Speaker 3: by thirty six percent.
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  Speaker 1: Over the last year.
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  Speaker 2: So by launching a streaming style tier that replicates how
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  Speaker 2: Spotify offers its audiobooks. Audible is effectively trying to neutralize
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  Speaker 2: the competitors advantage while also leaning into its own strength
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  Speaker 2: a much deeper catalog of books, so you can keep
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  Speaker 2: reading for the rest of your life without ever opening
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  Speaker 2: a physical book. For our third and final story, Australia's
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  Speaker 2: major airports made over four hundred million dollars in profit
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  Speaker 2: from car parking alone in twenty twenty five.
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  Speaker 3: If it already felt like airports were fleecing you, well
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  Speaker 3: the numbers say your gut was spot on.
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  Speaker 1: Tell me more.
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  Speaker 2: Okay, So, Australia's four major airports Sydney, Melbourne, Brisbane and
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  Speaker 2: Perth are all owned and operated by private companies. Oh
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  Speaker 2: you might think their main business is planes taking off
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  Speaker 2: and landing.
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  Speaker 1: That's only part of the story.
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  Speaker 2: They make their money from not only flights, but also
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  Speaker 2: from retail, from property and yep, you guessed it, the
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  Speaker 2: cash cow car parking.
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  Speaker 3: And now judging boy, the a Triple Ce has just
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  Speaker 3: dropped its annual airport monitoring report for the twenty twenty
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  Speaker 3: five financial year, and the car parking numbers are uncomfortable
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  Speaker 3: for travelers.
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  Speaker 2: Ye.
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  Speaker 3: All combined, the four major airports made four hundred and
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  Speaker 3: two million bucks in operating profit just from car parking.
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  Speaker 2: Not revenue. We're talking at profits.
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  Speaker 3: Brisbane Airport was the most aslucrative, generating one hundred and
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  Speaker 3: twenty five million profit and earning seventy seven cents profit
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  Speaker 3: for every dollar charge you cough, well, unloading your luggage,
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  Speaker 3: that'll be twenty bucks if your car isn't perfectly aligned
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  Speaker 3: between the lines fifteen buck. Sydney Airport also wasn't far behind,
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  Speaker 3: or Perth and Melbourne also generated high profits per dollar.
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  Speaker 3: Is giving monopoly vibes, So what is the key learning here?
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  Speaker 3: Just because the market isn't officially regulated doesn't mean it's competitive.
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  Speaker 2: Yeah, b Man, Australia's major airports operate under what economists
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  Speaker 2: call a natural monopoly.
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  Speaker 3: That's when the infrastructure is so expensive to build that
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  Speaker 3: it only really makes sense for one provider to exist
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  Speaker 3: in that location.
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  Speaker 2: Think airports or electricity grids or water networks.
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  Speaker 3: Once it exists, it makes no economic sense for a
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  Speaker 3: competitor to build a second identical network right beside it,
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  Speaker 3: and that.
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  Speaker 2: Gives airport operators significant pricing power.
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  Speaker 3: And yep, there are alternative car parks, but it's incredibly inconvenient.
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  Speaker 2: You got to trye three kilometers down the road with
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  Speaker 2: all your baggage.
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  Speaker 1: Shack Josey boy.
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  Speaker 3: The four airports between eight and fourteen percent of their
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  Speaker 3: total revenue from car parking alone.
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  Speaker 2: And they man the A Triple CE has repeatedly flagged
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  Speaker 2: that its current monitoring role isn't enough to keep airports
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  Speaker 2: in check.
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  Speaker 3: But it's also why infrastructure assets like electricity bids and
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  Speaker 3: water networks and airports so attractive to long term investors.
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  Speaker 2: A lot of them are not flexam. The Formula one
• 6:45
  Speaker 2: is reving this weekend in Australia, but as we know,
• 6:47
  Speaker 2: Formula one isn't just about fast cars anymore, it is
• 6:50
  Speaker 2: multi billion dollar businesses. To make sure to download the
• 6:52
  Speaker 2: app and check out our latest article.
• 6:54
  Speaker 3: Thanks for listening and we'll see you on Wednesday, after
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  Speaker 3: the public holiday on Monday,