Latest / What the Flux / HBO's Max & Nine's new partnership | Bunnings' elderly opportunity | Guess shares skyrocket 30%

Transcript

HBO's Max & Nine's new partnership | Bunnings' elderly opportunity | Guess shares skyrocket 30% · What the Flux

• 0:05
  Speaker 1: This is what the flux. I'm Brett and I'm Justin
• 0:07
  Speaker 1: and it's Wednesday, the nineteenth of Mark.
• 0:09
  Speaker 2: The price of gold has topped three thousand US dollars
• 0:12
  Speaker 2: for the very first time.
• 0:14
  Speaker 1: And just wait.
• 0:14
  Speaker 2: We know that gold is considered a safe haven, so
• 0:17
  Speaker 2: it's no surprise that it's jumping right now. In fact,
• 0:19
  Speaker 2: gold hit a record high fourteen times since Trump took
• 0:24
  Speaker 2: office in January.
• 0:25
  Speaker 1: He's growing and growing and growing. Man. You know, I
• 0:27
  Speaker 1: got a puppy last year. And let me tell you
• 0:29
  Speaker 1: the cost of pet ownership. It's not cheap. Oh that's
• 0:32
  Speaker 1: why this week in the Flex app, we cover the
• 0:34
  Speaker 1: true cost of pet ownership, all the expenses you might
• 0:36
  Speaker 1: have as a poor parent. So if you're thinking of
• 0:39
  Speaker 1: getting a pet, sometime you see a fluxdap, make sure
• 0:41
  Speaker 1: to head to the Flex app and check it out.
• 0:43
  Speaker 2: Three cost saving stories today. Juzzy boy, let's do it
• 0:46
  Speaker 2: for our first Warner Brothers. Discovery is launching its streaming
• 0:50
  Speaker 2: platform Max in Australia this month, and we'll use nine
• 0:53
  Speaker 2: Entertainment to sell ads on its cheapest tier.
• 0:56
  Speaker 1: Out o the streaming platforms hitting up once again, d man,
• 0:59
  Speaker 1: So what is going on here?
• 1:00
  Speaker 2: Well, we've spoken a number of times about Warner Brothers
• 1:02
  Speaker 2: Discovery Juzzy Boy, and they're launching their Max streaming platform
• 1:06
  Speaker 2: in Australia.
• 1:07
  Speaker 1: The Max platform, previously called HBO Max, launched in twenty twenty.
• 1:11
  Speaker 2: And Max first flagged its entry into the Australian market
• 1:14
  Speaker 2: in September twenty twenty four when it warned Foxdell it
• 1:17
  Speaker 2: would be joinking it shows away.
• 1:19
  Speaker 1: Like Game of Thrones, The Last of Us and The
• 1:22
  Speaker 1: White and the White Lotus.
• 1:23
  Speaker 2: Where absolutely nothing has happened in season four so far.
• 1:27
  Speaker 1: Anyway, be Man Max will be launching in Australia at
• 1:29
  Speaker 1: the end of March with a number of tiers, including
• 1:31
  Speaker 1: the ads supported tier like Netflix.
• 1:33
  Speaker 2: Because we all love a tense House of the Dragon
• 1:36
  Speaker 2: battle scene interrupted by an ad for dishwashing liquid, but.
• 1:40
  Speaker 1: Be Man their new ad supported tier requires Max to
• 1:42
  Speaker 1: have a sales team on the ground to source local ads.
• 1:45
  Speaker 2: Right, wrong, Juzzy Boy, because Warner Brothers Discovery has partnered
• 1:49
  Speaker 2: with Nine Entertainment, who will sell the ads for the
• 1:51
  Speaker 2: ad supported tier of Max.
• 1:53
  Speaker 1: Which is called Max Basis, and as.
• 1:55
  Speaker 2: A result, Nine will take a cut from the ads
• 1:57
  Speaker 2: it sells for.
• 1:58
  Speaker 1: Max and be Man selling another network AD space is
• 2:00
  Speaker 1: a new source of revenue for Nine. Possibly it won't
• 2:03
  Speaker 1: be for too long. So what is the key learning here?
• 2:05
  Speaker 2: When a business is building out a new feature, there's
• 2:08
  Speaker 2: one key dilemma to build things in house or do
• 2:11
  Speaker 2: we outsource it to the professional.
• 2:12
  Speaker 1: Saban Man for Warner Brothers Discovery, outsourcing to nine means
• 2:15
  Speaker 1: it won't have quite as much control over its new
• 2:17
  Speaker 1: AD system. That is bad, But outsourcing a project also
• 2:21
  Speaker 1: has major benefits.
• 2:22
  Speaker 2: You don't need to make the initial large investment.
• 2:24
  Speaker 1: That is good.
• 2:25
  Speaker 2: But the key is really that you can learn from
• 2:27
  Speaker 2: someone who already knows what they're doing, Black nine, who's
• 2:30
  Speaker 2: been selling ads for squillions of years, and then build
• 2:32
  Speaker 2: it yourself later with all those inside. And this is
• 2:35
  Speaker 2: exactly the same path that Netflix took when it launched
• 2:37
  Speaker 2: its own AD supported model. First, they enlisted Microsoft to
• 2:40
  Speaker 2: help them serve ads to customers in late.
• 2:42
  Speaker 1: Twenty twenty two, but by May twenty twenty four, Netflix
• 2:45
  Speaker 1: announced plans to bring the ad tech in house and
• 2:47
  Speaker 1: shift away from Microsoft.
• 2:49
  Speaker 2: So while nine might be celebrating the win today, it
• 2:52
  Speaker 2: surely knows this may not.
• 2:53
  Speaker 1: Last too long. For our second story, Bunnings is launching
• 2:57
  Speaker 1: a new assisted living range to tap into Australia's aiaging
• 3:00
  Speaker 1: population and the NDAs.
• 3:02
  Speaker 2: Clearly Bunnings isn't just about power tools anymore. Give me
• 3:05
  Speaker 2: the low down.
• 3:06
  Speaker 1: Okay, so we all know Buddings is a place to
• 3:07
  Speaker 1: go for a hammer and somehow leave with six plans and.
• 3:10
  Speaker 2: A new appreciation for PVC piping and three snag Load
• 3:14
  Speaker 2: me up and juzzy boy. Remember back in twenty twenty
• 3:17
  Speaker 2: three Bunnings launched a new pet range to capitalize on
• 3:20
  Speaker 2: the growth in Australian pet ownership.
• 3:22
  Speaker 1: I do remember that.
• 3:23
  Speaker 2: Well, now it's planning to expand into the assisted living
• 3:26
  Speaker 2: and disability market.
• 3:27
  Speaker 1: Seems a little off brand for Bunnings, b man, But
• 3:30
  Speaker 1: go on.
• 3:30
  Speaker 2: Well, juzzy boy, here's a couple of stats for you.
• 3:32
  Speaker 2: Five and a half million Australians are technically living with
• 3:35
  Speaker 2: some sort of disability and.
• 3:36
  Speaker 1: Australia has an aging population of people who want you
• 3:38
  Speaker 1: age in place code word for staying in your home
• 3:41
  Speaker 1: for as long as possible. So Bunnings is rolling out
• 3:43
  Speaker 1: and you assisted living and disability category.
• 3:45
  Speaker 2: We're talking over twenty five hundred products, from bathroom handles
• 3:49
  Speaker 2: to non slip flooring and even mobility ramp.
• 3:51
  Speaker 1: And Bunning sees the addressable market around one point six
• 3:55
  Speaker 1: billion dollars right now and continuing to grow.
• 3:57
  Speaker 2: So what is the key learning here?
• 3:59
  Speaker 1: An addressable market refers to the total revenue opportunity available
• 4:02
  Speaker 1: for a product or service.
• 4:03
  Speaker 2: In Bunnings case, the current addressable market is one point
• 4:06
  Speaker 2: six billion dollars but is projected to grow to two
• 4:09
  Speaker 2: point one bill by twenty thirty and be man Thoroughly
• 4:12
  Speaker 2: Researching the addressable market helps businesses understand the full sales
• 4:16
  Speaker 2: potential if they captured one hundred percent of the market
• 4:18
  Speaker 2: and juz boy, this market is particularly attractive for Bunnings
• 4:21
  Speaker 2: because it's got two key tailwinds.
• 4:23
  Speaker 1: On the one tail, we've got a demographic shift a
• 4:25
  Speaker 1: nice way of saying an aging population.
• 4:27
  Speaker 2: On this other tiale over here, we've got a government
• 4:29
  Speaker 2: funded program via the NDIS.
• 4:31
  Speaker 1: So by understanding the size and growth of this market,
• 4:34
  Speaker 1: Bunnis can decide how much to invest in.
• 4:36
  Speaker 2: Stock, how much to invest in store space or marketing
• 4:39
  Speaker 2: or logistics in order to capture a significant share and
• 4:42
  Speaker 2: be man Similar to its pet food test, it reckons
• 4:45
  Speaker 2: the assisted living space is a big opportunity for the future.
• 4:48
  Speaker 2: For our third and final story, shares in retail at
• 4:52
  Speaker 2: Guests have skyrocketed more than thirty percent after a plan
• 4:55
  Speaker 2: to take the company private, But not everyone gets to
• 4:57
  Speaker 2: cash out.
• 4:58
  Speaker 1: In a real rocky road for guests lately being man,
• 5:00
  Speaker 1: So tell me what's going on.
• 5:01
  Speaker 2: So Guess is the US clothing retailer that was founded
• 5:04
  Speaker 2: in nineteen eighty one and helped kick off the career
• 5:07
  Speaker 2: of Claudius Schiffer.
• 5:08
  Speaker 1: Makes everything from jeans to T shirts, to watches to
• 5:10
  Speaker 1: perfume and choose.
• 5:12
  Speaker 2: Now Jozi wait. Last year, Guess, alongside a licensing specialist WHP,
• 5:16
  Speaker 2: they acquired a brand called Rag and Bone. But twenty
• 5:19
  Speaker 2: twenty four was not particularly kind to Guests and their
• 5:22
  Speaker 2: share price.
• 5:22
  Speaker 1: In fact, the share price film more than fifty percent
• 5:24
  Speaker 1: in the past twelve months.
• 5:25
  Speaker 2: For some context here, the S and P five hundred
• 5:27
  Speaker 2: gained twenty three percent last year.
• 5:29
  Speaker 1: But now b man, Guess has got some good news
• 5:31
  Speaker 1: because the share prices shut up more than thirty percent.
• 5:34
  Speaker 2: That's because WHP Global, their Rag and Bone partner, has
• 5:37
  Speaker 2: made an offer to buy Guesses shares at a thirty
• 5:40
  Speaker 2: four percent premium.
• 5:41
  Speaker 1: And this those guests at seven hundred and seventy million
• 5:44
  Speaker 1: US dollars.
• 5:44
  Speaker 2: But but WHP won't be buying the shares of guesses
• 5:47
  Speaker 2: co founders and CEO. Dozy Boy is part of the deal.
• 5:50
  Speaker 2: WHP will own guesses intellectual property aka it's IP, and.
• 5:54
  Speaker 1: The existing management team would continue to run the day
• 5:57
  Speaker 1: to day operations of guests under this new license.
• 6:00
  Speaker 2: Otherwise known as the brand management model.
• 6:02
  Speaker 1: So what is the key learning here?
• 6:04
  Speaker 2: The brand management model focuses on separating IP ownership from
• 6:07
  Speaker 2: operational activities.
• 6:09
  Speaker 1: Brand managers like WHP don't want to be running stores
• 6:12
  Speaker 1: and warehouses and deally with logistics.
• 6:14
  Speaker 2: They want to acquire well known IP and then license
• 6:17
  Speaker 2: it to third parties who handle the heavy lifting and the.
• 6:19
  Speaker 1: Man This brand model allows brand managers to stay asset light.
• 6:23
  Speaker 1: They essentially collect royalties and licensing fees from the operator
• 6:27
  Speaker 1: of the brand they OWNE So in.
• 6:28
  Speaker 2: This case, WHBE Global would be paid a recurring revenue
• 6:30
  Speaker 2: stream for the use of the guest brand, which they
• 6:33
  Speaker 2: would own, and the guest founders.
• 6:34
  Speaker 1: And CEO would still operate the stores under the license.
• 6:37
  Speaker 1: Fluxam there is a serious cost of PET ownership. Let
• 6:40
  Speaker 1: me tell you from my own experience, from the just
• 6:42
  Speaker 1: getting started costs, to the ongoing expenses, to the unexpected
• 6:45
  Speaker 1: costs as well. We cover it all in the Flux
• 6:47
  Speaker 1: app this week, so if you're looking at getting a
• 6:49
  Speaker 1: fairy friend, make sure to download the Flux app and
• 6:52
  Speaker 1: check it all out.
• 6:52
  Speaker 2: Thanks for listening, and we'll see you on for Friday