Latest / What the Flux / Pizza Hut gets flamed for $2.5 million | Sony's warning shot to the bots | Buffet's billion dollar bet

Transcript

Pizza Hut gets flamed for $2.5 million | Sony's warning shot to the bots | Buffet's billion dollar bet · What the Flux

• 0:05
  Speaker 1: This is what the flucks.
• 0:06
  Speaker 2: I'm justin and I'm hashteeve and it's Monday, the twentieth
• 0:09
  Speaker 2: of May.
• 0:10
  Speaker 1: AG. We spoke last month about the ato's latest crackdown
• 0:13
  Speaker 1: on tax debts owed by businesses, and it seems like
• 0:16
  Speaker 1: the ATO is pretty serious. According to the latest Starter,
• 0:18
  Speaker 1: corporate insolvencies over the past year are fifty percent higher
• 0:22
  Speaker 1: free COVID and the main reason the ATO chasing down
• 0:25
  Speaker 1: their debts flux spam.
• 0:26
  Speaker 2: We are entering winter, or at least it's definitely starting
• 0:29
  Speaker 2: to feel that way. In the floodstap we've covered five
• 0:32
  Speaker 2: tried and tested ways to manage your energy bill, so
• 0:35
  Speaker 2: make sure to check it out and save some money
• 0:37
  Speaker 2: on your bills this winter.
• 0:39
  Speaker 1: Three warming stories to the AHG.
• 0:41
  Speaker 2: Let's get into it for our first.
• 0:43
  Speaker 1: Pizza Hut Australia has been fined two and a half
• 0:46
  Speaker 1: million dollars for spamming customers with ten million hit delicious
• 0:50
  Speaker 1: messages without their consent.
• 0:51
  Speaker 2: That is a whole lot of discounts on garlic, bread
• 0:54
  Speaker 2: and pizzas and tell.
• 0:55
  Speaker 1: Me more so. Pizza Hut is the global pizza franchise
• 0:58
  Speaker 1: that first expanded into at in the nineteen seventies and.
• 1:01
  Speaker 2: In Australia, the Pizza Hut franchise has been through a
• 1:04
  Speaker 2: lot of owners, but since.
• 1:06
  Speaker 1: June last year it's been owned by a US franchiser
• 1:09
  Speaker 1: operator called the Flynn Restaurant Group.
• 1:11
  Speaker 2: But Jazz. Before this new owner came in, Pizza Hut
• 1:14
  Speaker 2: Australia was busy telling anyone who'd listen about its.
• 1:16
  Speaker 1: Surf and turf pizza or maybe the Bolonaise pasta pizza.
• 1:19
  Speaker 2: Yeah, it sent nearly six million texts and emails between
• 1:23
  Speaker 2: January and May twenty twenty three to customers who had
• 1:26
  Speaker 2: unsubscribed or not consented.
• 1:27
  Speaker 1: On top of that, it's sent out more than four
• 1:29
  Speaker 1: million marketing emails without an option for their customers to unsubscribe.
• 1:33
  Speaker 2: So now the Australian Communications and Media Authority have fined
• 1:37
  Speaker 2: Pizza Hut two point five million dollars for these spamy
• 1:41
  Speaker 2: marketing messages, and respect for consumer privacy is becoming the
• 1:44
  Speaker 2: top of akma's hitlist.
• 1:46
  Speaker 1: So what is the key learning here?
• 1:48
  Speaker 2: While the cost of sending emails and texts is pretty cheap,
• 1:51
  Speaker 2: the cost of breaching these laws is becoming very costly.
• 1:54
  Speaker 1: You see, email campaigns can cost a few cents per
• 1:57
  Speaker 1: email or sometimes even for free.
• 1:59
  Speaker 2: So companies are often tempted to send major email blasts.
• 2:02
  Speaker 1: But because of the ease of sending these emails, Akma
• 2:04
  Speaker 1: has been actively cracking down on the practice for the
• 2:06
  Speaker 1: past eighteen months.
• 2:08
  Speaker 2: Get this, Akma has issued more than fifteen million dollars
• 2:11
  Speaker 2: in spam and marketing penalties just over the past eighteen months.
• 2:14
  Speaker 1: We're talking companies like ticketech opsm kmart, DoorDash and Combank
• 2:18
  Speaker 1: as well.
• 2:19
  Speaker 2: It can really hurt their reputation.
• 2:20
  Speaker 1: And maybe customers might think twice about sharing their details
• 2:23
  Speaker 1: with pizza art again, even if it means missing out
• 2:26
  Speaker 1: on a SpongeBob Sweet Chili pizza.
• 2:28
  Speaker 2: Yeap, those really exist.
• 2:29
  Speaker 1: For our second story, Sony Music has sent a warning
• 2:33
  Speaker 1: shot to AI companies, accusing them of stealing its artist's
• 2:36
  Speaker 1: content without permission.
• 2:38
  Speaker 2: This is taking me back to that viral Drake and
• 2:40
  Speaker 2: the Weekend song that was actually made by AI. Tell
• 2:43
  Speaker 2: us what's going on here?
• 2:44
  Speaker 1: Okay? So, Sony Music is the world's second biggest record
• 2:47
  Speaker 1: company over by Sony Entertainment, and.
• 2:49
  Speaker 2: It's worked with hundreds of artists worldwide, including Billy Joel, Celin,
• 2:52
  Speaker 2: Dion and Beiance.
• 2:54
  Speaker 1: And now Sony has sent out a letter to over
• 2:56
  Speaker 1: seven hundred AI companies warning them not to train their
• 2:59
  Speaker 1: AI model on its content without permission.
• 3:01
  Speaker 2: Sounds strict. That content includes everything from audio recordings to
• 3:05
  Speaker 2: music compositions, lyrics and.
• 3:07
  Speaker 1: Cover art, and actually in that letter, Sony asked the
• 3:10
  Speaker 1: AI companies to either confirm they haven't used any of
• 3:13
  Speaker 1: Sony's content without permission.
• 3:14
  Speaker 2: Or disclose exactly how that content was being used in
• 3:17
  Speaker 2: AI training.
• 3:18
  Speaker 1: Because Sony wants to then discuss licenses. Sony then wants
• 3:21
  Speaker 1: to discuss licensing deals with AI companies. You get compensation
• 3:25
  Speaker 1: for the content that's been used because.
• 3:26
  Speaker 2: It ain't no AI touching texas hold them without Beyonce's approval.
• 3:29
  Speaker 1: Absolutely not. This is sounding a little bit familiar though,
• 3:32
  Speaker 1: looking at you New York Times.
• 3:33
  Speaker 2: So tell me what is the key learning here?
• 3:36
  Speaker 1: When one industry identifies a big revenue opportunity, the rest
• 3:39
  Speaker 1: often follow you.
• 3:40
  Speaker 2: See, Sony's letter has come hot on the heels of
• 3:43
  Speaker 2: rising tension between media publications and AI companies.
• 3:47
  Speaker 1: YEP. Last year we saw the New York Times see
• 3:49
  Speaker 1: open AI and Microsoft for copyright infringement.
• 3:52
  Speaker 2: They claim that their content was used in training these
• 3:55
  Speaker 2: AI models. So this movement, which was started by media companies,
• 3:58
  Speaker 2: has pushed other industries to take action too.
• 4:00
  Speaker 1: Yeah, and in the music industry it ain't just sony.
• 4:02
  Speaker 2: Artists like Billie Eilish and Nicki Minaj have told AI
• 4:05
  Speaker 2: companies to stop and I quote this assault on human creativity.
• 4:09
  Speaker 1: And actually this could now influence other creators like photographers, designers,
• 4:13
  Speaker 1: filmmakers and more to push for compensation.
• 4:15
  Speaker 2: Two your move AI companies.
• 4:17
  Speaker 1: For our third and final story, Warren Buffett's Berkshire Hathaway
• 4:22
  Speaker 1: has finally revealed the mystery business that he is in
• 4:24
  Speaker 1: business six point seven billion US dollars into and at
• 4:27
  Speaker 1: share price jumped eight percent on the news.
• 4:29
  Speaker 2: Buffett's got that midas touched for seventy years, so it's
• 4:32
  Speaker 2: no surprise to see the price jump. Tell me more.
• 4:35
  Speaker 1: Warren Buffett is one of the most famous investors in
• 4:37
  Speaker 1: the whole wide universe.
• 4:39
  Speaker 2: He started investing under the Berkshire Hathaway name with his
• 4:42
  Speaker 2: mate Charlie Munger.
• 4:43
  Speaker 1: He's ninety three and still very involved well. Charlie was
• 4:46
  Speaker 1: still operational in the business until he passed away at
• 4:48
  Speaker 1: ninety nine.
• 4:49
  Speaker 2: Now Berkshire Hathaway is known to be particularly patient with
• 4:53
  Speaker 2: its investments.
• 4:54
  Speaker 1: Ain't going to make an investment just because it's got
• 4:56
  Speaker 1: a heap of cash.
• 4:57
  Speaker 2: In fact, Berkshire Hathaway had one hundred an eighty two
• 5:00
  Speaker 2: billion usd in cash in March this year.
• 5:03
  Speaker 1: But now Berkshire Hathaways announced its investment of six point
• 5:06
  Speaker 1: seven billion US dollars in a new company, Sharp Insurance.
• 5:10
  Speaker 2: And sort off shares in Apple, which was their largest investment.
• 5:13
  Speaker 1: Got to say that really hurts Apple being traded out
• 5:16
  Speaker 1: for a pretty bland insurance company.
• 5:18
  Speaker 2: But after the investment announcement, the share price in Chub
• 5:21
  Speaker 2: Insurance jumped eight percent.
• 5:22
  Speaker 1: And it seems like Buffet's really got a thing for
• 5:24
  Speaker 1: insurance businesses because of its float.
• 5:27
  Speaker 2: So what's the key learning here?
• 5:29
  Speaker 1: Some industries are inherently positioned for success thanks to their
• 5:32
  Speaker 1: unique financial structures.
• 5:34
  Speaker 2: Take the insurance industry, for example, Insurers collect premiums from
• 5:37
  Speaker 2: customers now, but claims aren't paid out until later, or.
• 5:41
  Speaker 1: More likely never.
• 5:42
  Speaker 2: This is called the float. It acts as a free
• 5:44
  Speaker 2: loan for the insurer.
• 5:45
  Speaker 1: And insurers can invest this float money in the in
• 5:48
  Speaker 1: between time for their own benefit, like in.
• 5:50
  Speaker 2: Other companies like Coca Cola or American Express heard of them.
• 5:53
  Speaker 1: Before, I think maybe once or twice, and a she
• 5:56
  Speaker 1: Berkshey Hathaway's floats across its insurance businesses has grown to
• 5:59
  Speaker 1: over a hundred dudred and sixty four billion US dollars.
• 6:02
  Speaker 2: And this idea of the flow is why Berkshire Hathaway
• 6:05
  Speaker 2: has significant investments in four large insurers.
• 6:08
  Speaker 1: There's Berkshire Hathaway Reinsurance, there's Geico, there's General Reinsurance, and
• 6:12
  Speaker 1: now they've welcomed Chub Insurance into the fold too. I
• 6:14
  Speaker 1: read that article on how to save money on my
• 6:16
  Speaker 1: electricity and energy this winter, and I'm very much looking
• 6:19
  Speaker 1: forward to putting that in practice. So fox Ham, if
• 6:21
  Speaker 1: you want to know the top five things to do
• 6:23
  Speaker 1: to reduce your energy bell this winter, make sure to
• 6:25
  Speaker 1: download the Flux app and check it all out.
• 6:27
  Speaker 2: Thanks for listening and we'll see you on Wednesday,