Latest / What the Flux / Disney+ in a new battle with Foxtel | Pokemon Go's $3.5 billion fortune | Zara feeling the pain in the US

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Disney+ in a new battle with Foxtel | Pokemon Go's $3.5 billion fortune | Zara feeling the pain in the US · What the Flux

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  Speaker 1: This is what the flux. I'm Brett and Justin as
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  Speaker 1: Monday there seventeenth of March.
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  Speaker 2: Boy, we may still be a few months away from
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  Speaker 2: the end of this financial year, but the ATO has
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  Speaker 2: already put out one group who will be on its
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  Speaker 2: hit list, and this time it's smallk business owners, particularly
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  Speaker 2: those using cash to hide some of their business income.
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  Speaker 2: The ATO is using its swanky data matching to ensure
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  Speaker 2: they can track inconsistencies and then they're going to come
• 0:30
  Speaker 2: knock itam.
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  Speaker 1: As we head out of summer and get into a
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  Speaker 1: euro summer, this is the time when it's the most
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  Speaker 1: important to be planning for the middle of the year
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  Speaker 1: where you're staying, getting cheap flights and budgeting, which is
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  Speaker 1: the key if you want to live your best life
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  Speaker 1: in Europe. We have the post holiday money Regrets. We
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  Speaker 1: cover the three top tips to prepare for a guilt
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  Speaker 1: free eurosummer in the flex Ause. Make sure to check
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  Speaker 1: it out.
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  Speaker 2: Three insightful stories today Josie Boy, Let's do it for
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  Speaker 2: our first. Disney is making a big play for a
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  Speaker 2: new demographic of customers in Australia as it adds ESPN
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  Speaker 2: to Dizney plus Mickey.
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  Speaker 1: Mouse pulling on a basketball guernsey, b Man, what is
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  Speaker 1: going on here?
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  Speaker 2: So jazzy boy. Disney is one of the biggest brands
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  Speaker 2: in the whole darn universe.
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  Speaker 1: With some of the most iconic movies and shows in
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  Speaker 1: the whole wide world.
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  Speaker 2: We'd be talking Beauty and the Beast, Monsters, inc Aladdin, Marvel,
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  Speaker 2: Star Wars, and about a squillion others.
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  Speaker 1: And b Man. After the success of Netflix, Disney launched
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  Speaker 1: streaming service Disney Plus in twenty nineteen in the US
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  Speaker 1: and then shortly after in Australia.
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  Speaker 2: And Disney Plus has grown to three point one million
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  Speaker 2: Ossie subscribers.
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  Speaker 1: But Beman. Apart from the cartoons and the superheroes, Disney
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  Speaker 1: also owns ESPN.
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  Speaker 2: The sports broadcaster that owns the rights to the NBA,
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  Speaker 2: NHL and UFC fights.
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  Speaker 1: And Beman, Well, Disney has millions of streamers, he wants.
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  Speaker 2: To acquire more of a particular demographic, young male sports fans,
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  Speaker 2: which interestingly is.
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  Speaker 1: A group that skews towards rival streaming services.
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  Speaker 2: So now Disney will roll out ESPN as part of
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  Speaker 2: its Disney Plus offering here in Australia.
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  Speaker 1: For now, ESPN will still be available on Foxtel and
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  Speaker 1: KO but who knows how long and be man, it
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  Speaker 1: is pretty clear that Disney plans to grow its market
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  Speaker 1: share through its bundling.
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  Speaker 2: Oh yes, so what is the key learning here?
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  Speaker 1: Bundling allows companies to attract new customers. We are creating
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  Speaker 1: an entirely new product.
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  Speaker 2: By combining major sports with existing movies and TV shows,
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  Speaker 2: Disney Plus increases its appeal to a broader audience.
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  Speaker 1: Especially younger male sports fans.
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  Speaker 2: And Jose Boit. Many of these sports fans might not
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  Speaker 2: have been interested in Disney Plus for things like Marvel
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  Speaker 2: or Pixar content in the past.
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  Speaker 1: But now they might subscribe for live NBA or UFC events.
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  Speaker 2: And bundling can also boost customer retention.
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  Speaker 1: Yeah, when subscribers get access to both entertainment and live
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  Speaker 1: sports in one place, they're less likely to cancel.
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  Speaker 2: We've seen this approach work with Amazon.
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  Speaker 1: In fact, Amazon Prime Videos churn rate is just eight percent,
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  Speaker 1: which is the lowest in the streaming industry.
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  Speaker 2: Because it comes with Amazon Primes shopping perks.
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  Speaker 1: So b Man, Disney's hoping that by making ESPN part
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  Speaker 1: of the Disney Plus package, it can win over a
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  Speaker 1: whole new group of AUSSI.
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  Speaker 2: Subscribers for our second story. The owner of Pokemon Go
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  Speaker 2: is going to sell its gaming division for three and
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  Speaker 2: a half billion US dollars to a video game developer
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  Speaker 2: named Scopily.
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  Speaker 1: I remember when everyone and their dog were out catching Pokemon.
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  Speaker 1: Be man, what is going on here? Good times, Josey boy.
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  Speaker 2: Everyone was obsessed back in the day with the idea
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  Speaker 2: of catching Pokemon in the real world.
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  Speaker 1: Yeah, and be Man. Since it's released in twenty sixteen,
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  Speaker 1: Pokemon Go has raked in over five point eight billion
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  Speaker 1: US dollars in revenue.
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  Speaker 2: That's basically the GDP of a small country like Malta.
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  Speaker 1: And b Man, it's not all nostalgia. The game still
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  Speaker 1: has over one hundred and fifteen million active users every month.
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  Speaker 2: Even though that's half the number of players that had
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  Speaker 2: during its peak back in twenty sixteen.
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  Speaker 1: There's still a whole lot of Pokemon trainers out there.
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  Speaker 1: B Man. Yep.
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  Speaker 2: But now Neantik has decided to sell their gaming division
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  Speaker 2: to Scopoly for three and a half billion dollars.
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  Speaker 1: Which includes Pokemon Go.
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  Speaker 2: And who is this Scopily that you speak of.
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  Speaker 1: Well, they're an American video game developer that's now owned
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  Speaker 1: by the Saudi Sovereign Wealth Fund.
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  Speaker 2: And this deal between Neantic and Scopoly is Saudi's way
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  Speaker 2: of adding a power up to their esports portfolio.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: A sovereign wealth fund is a bit like a giant
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  Speaker 2: investment account for an entire country.
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  Speaker 1: Instead of letting extra money just sit around, governments invest
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  Speaker 1: it into different assets and even countries need to diversify
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  Speaker 1: their investments, especially countries that rely on natural resources to
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  Speaker 1: generate their income.
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  Speaker 2: So Jaziboi. Even though Saudi Arabia is the largest oil
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  Speaker 2: exporter in the world, oil is obviously a limited resource.
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  Speaker 1: And Saudi Arabia needs a plan B in case this
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  Speaker 1: runs out one day.
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  Speaker 2: The idea behind Saudi's Wealth Fund is to decrease its
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  Speaker 2: dependence on oil.
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  Speaker 1: And enable them to develop other industries like tech, entertainment
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  Speaker 1: and tourism.
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  Speaker 2: And Australia also has a sovereign wealth fund called the
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  Speaker 2: Future Fund, and that was established in two thousand and six.
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  Speaker 1: And man, that's got a lazy two hundred and twenty
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  Speaker 1: five billion dollars funded into it.
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  Speaker 2: Nothing to sneeze out if you ask me, but quite
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  Speaker 2: minute compared to the Saudi Fund, which is worth nine
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  Speaker 2: hundred and thirty billion US dollars.
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  Speaker 1: So Man, well, it might seem surprising that Saudi Arabia
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  Speaker 1: is buying up video game companies, actually a strategic move
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  Speaker 1: to level up their economy.
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  Speaker 2: For our third and final story, the owner of retailer
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  Speaker 2: Zara has seen its revenue jump over twelve billion US
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  Speaker 2: U S dollars for the last quarter, but it's warned
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  Speaker 2: of a very uncertain future because of tariffs and US demand.
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  Speaker 1: Nothing like a bit of fast fashion and global trade
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  Speaker 1: drama to keep things interesting, be man, so tell me.
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  Speaker 2: More, okay. So. Indi Texts is the parent company of
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  Speaker 2: fast but premium fashion retailer Zara and its classier cousin
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  Speaker 2: Masmo Duty.
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  Speaker 1: It also owns Bursch, Gerpull and Bear Zara Home now Jazibo.
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  Speaker 2: Indi text was originally found that in Spain in nineteen
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  Speaker 2: eighty five, but has grown to become the world's largest
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  Speaker 2: fast fashion retailer.
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  Speaker 1: We've been talking over eight hundred stores across fifty markets
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  Speaker 1: in the world.
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  Speaker 2: And they've seen their quarterly revenue jump to twelve point
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  Speaker 2: two billion US dollars, up nearly one bill from the
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  Speaker 2: same period last year.
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  Speaker 1: But be man Despite the positive quarterly update, there are
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  Speaker 1: a couple of red flags for investors.
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  Speaker 2: Yes, well, in twenty twenty three, the Americas accounted for
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  Speaker 2: around twenty percent of all sales, but.
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  Speaker 1: In twenty twenty four, the America has dropped to just
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  Speaker 1: eighteen point six percent of all sales.
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  Speaker 2: And actually, despite this fall in sale in that region,
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  Speaker 2: it's actually jacked up its pricing.
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  Speaker 1: Zara raised prices by an average of twenty two percent
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  Speaker 1: on its dresses and eight percent on st in the
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  Speaker 1: US over the past year.
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  Speaker 2: Quite a statement from you there, Jersey boys. So what
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  Speaker 2: is the key learning here?
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  Speaker 1: Pricing strategy can be a very delicate balancing.
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  Speaker 2: App Yeah, luxury brands can generally raise prices with minimal impact.
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  Speaker 1: Because their customers expect the exclusivity.
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  Speaker 2: But on the other hand, fast fashion thrives on affordability, and.
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  Speaker 1: By jacking up its prices, Zara risks falling into an
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  Speaker 1: awkward middle.
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  Speaker 2: Ground, too expensive for budget shoppers yet not premium enough
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  Speaker 2: for luxury buyers.
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  Speaker 1: We know the likes of she in h and M
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  Speaker 1: and even team who are taking the world and the
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  Speaker 1: US by store.
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  Speaker 2: In fact, she and sales in the US reached around
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  Speaker 2: twenty five billion US dollars last year, so be.
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  Speaker 1: Man if Indi Text wants to grow its America's revenue
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  Speaker 1: once again. It needs to differentiate Zara from budget fast
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  Speaker 1: fashion brands.
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  Speaker 2: But also ensure it doesn't alienate its core customer base.
• 6:43
  Speaker 1: Box Sam, did you know there is an optimal day
• 6:46
  Speaker 1: and time to book your flights and accommodation for overseas travel.
• 6:49
  Speaker 1: We've got it all covered in the Fox apps. Make
• 6:51
  Speaker 1: sure to check it all out.
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  Speaker 2: Thanks for listening and we'll see you on Wednesday.