Latest / What the Flux / AustralianSuper is in hot water | Spotify's billion dollar payout | Meta's plan to take on Nvidia

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AustralianSuper is in hot water | Spotify's billion dollar payout | Meta's plan to take on Nvidia · What the Flux

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  Speaker 1: This is what the Flux. I'm Brett and I'm Justin
• 0:07
  Speaker 1: and it's Friday, the fourteenth of February.
• 0:09
  Speaker 2: Doese Boy.
• 0:10
  Speaker 3: Woolwork's former CEO, Brad Banducci has gone from one controversy
• 0:14
  Speaker 3: machine to the next. We know he left Woollies last
• 0:17
  Speaker 3: year after political pressure over price gouging, and now he's
• 0:20
  Speaker 3: become the CEO of TEG, the owner of Ticketech, who's
• 0:24
  Speaker 3: most certainly had their own controversies recently, from tech malfunctions
• 0:27
  Speaker 3: for Taylor Swift concerts to data breaches.
• 0:30
  Speaker 1: It's another wild ride Flux APM. If you want to
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  Speaker 1: kick off the weekend on a high with fifty bucks
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  Speaker 1: in your front pocket, there is only one place to be.
• 0:38
  Speaker 1: It is in the Flux app on a Friday. All
• 0:40
  Speaker 1: you've got to do is download the app, have your
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  Speaker 1: notifications turned on, and if you answer the three questions
• 0:45
  Speaker 1: correctly and first you can lean the fifty bucks to
• 0:47
  Speaker 1: make sure to download the Flux app and turn your
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  Speaker 3: Three mind boggling stories today, Dozy Boy, let's do it
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  Speaker 3: for our first. Australian super has been sued by ASIK
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  Speaker 3: for knowingly delaying the payment of debt benefit claims for
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  Speaker 3: over five years.
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  Speaker 1: Even in death, you can't escape the admin. Tell me
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  Speaker 1: what's going on here?
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  Speaker 2: Okay.
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  Speaker 3: So, Australian Super is the largest superfund in Australia that
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  Speaker 3: was founded back in two thousand and six through a
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  Speaker 3: merger of two other funds.
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  Speaker 1: Back when James Bond was strutting his stuff in Casino Royale.
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  Speaker 2: And Jussie Boy.
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  Speaker 3: Australian Super has over three hundred and forty billion dollars
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  Speaker 3: of savings under management and.
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  Speaker 1: More than three point four million members around Australia.
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  Speaker 3: And with big investment balances comes very big expectations. Now
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  Speaker 3: being man, Australian Super is in quite the bit of
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  Speaker 3: hot water yep. Australian Super is being sued by ASCIK
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  Speaker 3: for significant delays in processing death benefit claims of their customers.
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  Speaker 1: That's the payment made from your superfund to your chosen
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  Speaker 1: beneficiary upon death.
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  Speaker 3: In fact, Jussie Boy ascid claims that Australian Super took
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  Speaker 3: up to four years to assess almost seven thousand death
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  Speaker 3: benefit claim that was.
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  Speaker 1: Happening for over five years.
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  Speaker 3: And to make matters worse, ac alleges that Australian Super
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  Speaker 3: kept on taking fees from the accounts of dead customers.
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  Speaker 1: And now assex warning, this isn't just an Australian super problem,
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  Speaker 1: it's a super industry problem.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: When you're a critical pillar of the Australian economy, of
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  Speaker 1: the watchhog will be watching you.
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  Speaker 3: See, Juzzy Boy, There is almost four trillion dollars worth
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  Speaker 3: of super savings in Australia.
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  Speaker 1: Right now, and that's more than the size of the
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  Speaker 1: UK's annual GDP.
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  Speaker 3: And this Australian supercase isn't even Acik's first rodeo with
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  Speaker 3: death benefit payment.
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  Speaker 1: No no, no. Acik ran a lawsuit against another superfund,
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  Speaker 1: sea Bus, last November for similar failures. Now Acik knows
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  Speaker 1: that poorly managed super funds and poor processes within super
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  Speaker 1: funds can cost everyday Australians millions. In fact, acid reckons
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  Speaker 1: Sea Buses failures cost the families of deceased members at
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  Speaker 1: least twenty million backs.
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  Speaker 3: So with Acik taking Australian super to court, Juzzy Boy,
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  Speaker 3: other super funds are most likely shaking in their super
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  Speaker 3: fund booties.
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  Speaker 1: For our second story, Spotify pay ten billion US dollars
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  Speaker 1: to the music industry in twenty twenty four, which was
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  Speaker 1: their largest payout ever. Still not enough, according to many,
• 2:55
  Speaker 1: many many, So tell me more. Okay, So we know
• 2:57
  Speaker 1: that back in the day, if people not us, of course,
• 2:59
  Speaker 1: wanted music, they would acquire it in a creative way.
• 3:02
  Speaker 3: It could be napsterack cazar, LimeWire to download the song
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  Speaker 3: illegally and be man.
• 3:08
  Speaker 1: It was kind of like playing Russia to roulette with
• 3:09
  Speaker 1: whether you'd get the song, a ripoff of the song,
• 3:12
  Speaker 1: or a virus.
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  Speaker 3: Then Spotify came along as the og legal streaming platform
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  Speaker 3: for music, and.
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  Speaker 1: Since it launched, it's become the largest streaming platform in
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  Speaker 1: the whole wide world.
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  Speaker 3: At last count, Spotify had six hundred and seventy five
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  Speaker 3: million users and two hundred and sixty three million paid
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  Speaker 3: subscribers as well.
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  Speaker 1: If you don't mind and now b man, Spotify's announced
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  Speaker 1: it paid ten billion US dollars in royalties in twenty
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  Speaker 1: twenty four to the music industry, and.
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  Speaker 2: That is our world record.
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  Speaker 1: Get this, Nearly fifteen hundred artists earn over one million
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  Speaker 1: US dollars in royalties from Spotify just last year.
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  Speaker 3: That's a pretty big jump from its payouts a decade ago,
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  Speaker 3: which were ameasly one billion dollars, but.
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  Speaker 1: That still hasn't stopped many in the music industry believing
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  Speaker 1: they're being short changed by Spotify.
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  Speaker 2: And co oh, so what is the key learning here?
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  Speaker 1: The streaming economy's revolutionized how artists make money, but it's
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  Speaker 1: also led to big debates about their compensation.
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  Speaker 3: In the old days, artists made money through album sales
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  Speaker 3: and radio plays.
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  Speaker 1: But now music streaming is the main revenue source, but
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  Speaker 1: the per stream payout is tiny. For context, Spotify pays
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  Speaker 1: artists around zero point zero zero three to zero point
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  Speaker 1: zero zero five cents per stream, and that means an
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  Speaker 1: artist needs around two hundred and fifty thousand streams just
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  Speaker 1: to make one thousand dollars.
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  Speaker 3: And while some artists, especially the big names, they earn millions,
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  Speaker 3: there are more than eight million artists on Spotify.
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  Speaker 1: That means the smaller artists struggle.
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  Speaker 2: To break even and Juzzy Boy.
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  Speaker 3: As the music streaming platforms like Spotify they dominate the industry,
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  Speaker 3: you can expect debate to continue raging. Luckily, no more
• 4:39
  Speaker 3: viruses from Kazar.
• 4:40
  Speaker 1: For our third and final story. Meta has been un
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  Speaker 1: testing its own AI chip as it tries to swoop
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  Speaker 1: in on in video's market.
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  Speaker 3: Meta be looking over the fence at in videos multi
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  Speaker 3: trillion dollar vow and be thinking give me a fat
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  Speaker 3: slice of that.
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  Speaker 2: Tell me more so we know.
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  Speaker 1: Meta was formerly known as Facebook, which was founded by
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  Speaker 1: part man putbot Mark Zuckerberg.
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  Speaker 3: It's also the owner of the family of apps including Facebook, Instagram, WhatsApp,
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  Speaker 3: and of course it's a little metaverse project that's.
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  Speaker 1: Cost it more than thirty six billion US dollars.
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  Speaker 2: But jaziboit.
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  Speaker 3: Meta has moved on to the next shiny objects aimodels
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  Speaker 3: and not just AI models.
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  Speaker 2: No no, no, no no.
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  Speaker 3: On top of its large language model named Lama, Meta
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  Speaker 3: is looking to build its own in house AI chip.
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  Speaker 1: The idea is that it would be used to train
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  Speaker 1: its own AI system.
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  Speaker 3: And if successful, it would ramp up production for wide scale.
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  Speaker 1: Use and potentially become a major competitor to in Video.
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  Speaker 1: The gloves are well and truly out and be man.
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  Speaker 1: I do believe that has tried this once.
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  Speaker 2: Before, correct a window.
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  Speaker 3: Meta tried to build in house chips back in twenty
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  Speaker 3: twenty two, but it failed, so it just ended.
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  Speaker 1: Up buying ten billion dollars worth of invidious chips.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: When companies spend billions on a product, they have two choices,
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  Speaker 1: keep paying for it or build it out themselves.
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  Speaker 3: It's a huge upfront investment, but if it's successful, it
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  Speaker 3: can lead to major cost savings over the long run.
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  Speaker 1: In fact, being Man, Meta expects to spend up to
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  Speaker 1: sixty five billion US dollars on its AI infrastruy ructure
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  Speaker 1: in twenty twenty five alone.
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  Speaker 2: I'd be saying that's a lot of money.
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  Speaker 1: And although they failed in the past, Metas hoping it's
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  Speaker 1: AI chip development mirrors what Amazon did with AWS. Yep.
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  Speaker 3: Amazon initially built AWS to support its own internal e
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  Speaker 3: commerce operations.
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  Speaker 1: But then it realized it could sell this cloud infrastructure
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  Speaker 1: to other businesses, and.
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  Speaker 3: They turned it into a multi billion dollar empire, worth
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  Speaker 3: more than sixty five percent of its operating income.
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  Speaker 1: So be man. If Metas chips perform well, it means
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  Speaker 1: they could cut their dependence on in video.
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  Speaker 2: They could also cut their infrastructure costs, and.
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  Speaker 1: They could even sell their chips to other companies in
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  Speaker 1: the future. But Jazi boy, it all comes down to execution,
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  Speaker 1: and given this is not their core business, it'll be
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  Speaker 1: interesting to see if they can match the quality even
• 6:39
  Speaker 1: video for the second times, get your phones out, turn
• 6:42
  Speaker 1: your notifications on, and be the first person to answer
• 6:45
  Speaker 1: three business or finance questions correctly in the Blucks app,
• 6:48
  Speaker 1: and fifty bucks could be yours.
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  Speaker 3: Thanks for listening, and we'll see you on Monday.