Latest / What the Flux / News Corp's deal with the devil | Ticketmaster's monopoly battle | Dion Lee goes into administration

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News Corp's deal with the devil | Ticketmaster's monopoly battle | Dion Lee goes into administration · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm justin and I'm harsh deep and it's Monday, the
• 0:09
  Speaker 2: twenty seventh of May.
• 0:10
  Speaker 1: Canvas has just hosted their annual product showcase in LA
• 0:14
  Speaker 1: and it's the first time it's moved outside of Australia
• 0:16
  Speaker 1: and Canvas says it now has more than one hundred
• 0:19
  Speaker 1: and eighty million monthly active users. That means if Canvas
• 0:23
  Speaker 1: monthly uses was a country, it would be the eighth
• 0:25
  Speaker 1: biggest country in the whole world.
• 0:27
  Speaker 2: Oh my god, Flux fam We're nearing the end of May,
• 0:31
  Speaker 2: and that means if you haven't done your financial hygiene
• 0:33
  Speaker 2: for this month, here is your gentle reminder. Your credit
• 0:36
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• 0:38
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• 0:41
  Speaker 2: heap of advanced insights that show you why your score
• 0:43
  Speaker 2: has changed and what you could do to improve it.
• 0:45
  Speaker 2: So download the Flux app and make sure to do
• 0:47
  Speaker 2: your financial hygiene before the end of May.
• 0:50
  Speaker 1: Three hygienic stories today, Let's get into it for our
• 0:55
  Speaker 1: first news, Corp has signed a deal with open Ai
• 0:58
  Speaker 1: that will help train GPT's engine off the back of
• 1:01
  Speaker 1: its major publications.
• 1:02
  Speaker 2: I swear a few months ago, News Corp execs were
• 1:05
  Speaker 2: throwing serious shade at open Ai. Tell me what's happening here?
• 1:08
  Speaker 1: Okay? So News Corp is the media and publishing giant
• 1:10
  Speaker 1: that is ah hued in the US and jazz.
• 1:13
  Speaker 2: NewsCorp owns a whole bunch of publications around the world
• 1:16
  Speaker 2: like The Wall Street Journal, The New York Post and
• 1:18
  Speaker 2: The Sunday Times.
• 1:18
  Speaker 1: And in Australia, NewsCorp owns The Herald Sun, The Australian
• 1:22
  Speaker 1: as well as a big chunk of Foxtel.
• 1:24
  Speaker 2: A few months ago, News Corp CEO called Ai platforms
• 1:27
  Speaker 2: thieves and counterfeiters for training their models on media content.
• 1:31
  Speaker 1: Without the consent of these media publications.
• 1:33
  Speaker 2: But now just a few months later, News Corp is
• 1:36
  Speaker 2: calling open Ai a principled partner.
• 1:39
  Speaker 1: Because plot twist, news Corps announced a new deal with
• 1:42
  Speaker 1: open Ai.
• 1:42
  Speaker 2: Okay, cut to the chase. How much are they paying.
• 1:45
  Speaker 1: News Corps giving open Ai access to all of its
• 1:47
  Speaker 1: major news publications for a reported fifty million US dollars
• 1:51
  Speaker 1: a year over five years.
• 1:52
  Speaker 2: That feels kind of small considering open Ai is literally
• 1:56
  Speaker 2: building its business off this type of content.
• 1:58
  Speaker 1: That's true, but in news Corps view it's better than
• 2:00
  Speaker 1: getting nothing, which is what they're currently getting with Meta.
• 2:03
  Speaker 2: So tell me, Jazz, what is the key learning here?
• 2:05
  Speaker 1: Sometimes doing a bad deal is better than doing no
• 2:08
  Speaker 1: deal at all.
• 2:09
  Speaker 2: See right now, many publishers are in a pretty poor
• 2:12
  Speaker 2: negotiating position with tech leaders like Google, Meta and of
• 2:15
  Speaker 2: course open AI.
• 2:16
  Speaker 1: In fact, she NewsCorp CEO said, they've seen a huge
• 2:19
  Speaker 1: shift of power from creators like themselves to distributors like
• 2:23
  Speaker 1: big tech companies.
• 2:24
  Speaker 2: And we've already seen this shift through the media.
• 2:26
  Speaker 1: Bargaining code yep, that's where large media organizations like NewsCorp
• 2:29
  Speaker 1: and nine are fining with Meta over compensation for using
• 2:32
  Speaker 1: their content.
• 2:33
  Speaker 2: But Jazz, now we're starting to see it in the
• 2:35
  Speaker 2: AI space to where even greater extent.
• 2:37
  Speaker 1: AI platforms are literally training their whole, entire AI models
• 2:41
  Speaker 1: of this content.
• 2:42
  Speaker 2: So far, we've seen the Associated Press and Axel Springer
• 2:45
  Speaker 2: in Germany signed deals with open ais as well. Let's
• 2:48
  Speaker 2: read it, and now they've landed a big fish in Newscorps.
• 2:51
  Speaker 1: But for just fifty million US dollars per year. This
• 2:54
  Speaker 1: deal could be a sign of NewsCorp signing its own
• 2:57
  Speaker 1: death warrant in exchange for short term survival for.
• 3:00
  Speaker 2: Our second story. The owner of Ticketmaster has been sued
• 3:03
  Speaker 2: by the US Justice Department for creating a monopoly in
• 3:07
  Speaker 2: the live events industry and suffocating competition.
• 3:10
  Speaker 1: What are the odds? This was started by the Taylor
• 3:12
  Speaker 1: Swift fans who missed outed a concert because of Ticketmaster's debacle,
• 3:14
  Speaker 1: So tell.
• 3:15
  Speaker 2: Me more so bit of background Jazz. Ticketmaster is a
• 3:17
  Speaker 2: ticket sales company that was founded back in nineteen seventy six.
• 3:21
  Speaker 1: It manages the tickets for some of the biggest shows
• 3:23
  Speaker 1: in the whole world, from sporting events like AFOL matches,
• 3:26
  Speaker 1: Taylor Swift, and Cold Place concerts as well.
• 3:28
  Speaker 2: Now, back in twenty ten, Ticketmaster merged with Live Nation,
• 3:31
  Speaker 2: which promotes and operates live entertainment around the world, and.
• 3:34
  Speaker 1: After this merger, the new company became the dominant entertainment
• 3:38
  Speaker 1: company around the whole world, now Jazz.
• 3:40
  Speaker 2: In late twenty twenty two, Taylor Swift tickets were sold
• 3:43
  Speaker 2: on Ticketmaster, and it's fair to say the ticket buying
• 3:45
  Speaker 2: experience was horrific. This got the US legislators taking out
• 3:49
  Speaker 2: their magnifying glasses to take a closer look at Live
• 3:52
  Speaker 2: Nations control over the industry, and.
• 3:54
  Speaker 1: Now the US Department of Justice has foilt a lawsuit
• 3:57
  Speaker 1: against Live Nation Entertainment for alleged monopolists practices.
• 4:01
  Speaker 2: They claim that Live Nation suffocates its competition by either acquiring.
• 4:05
  Speaker 1: Them or throwing out threats and retaliation to artists who
• 4:08
  Speaker 1: agree to sell via arrivals.
• 4:10
  Speaker 2: And so now the Justice Department want to break up
• 4:13
  Speaker 2: ticket Master so that there is more choice for artists
• 4:16
  Speaker 2: and ultimately consumers.
• 4:17
  Speaker 1: So what is the key learning here?
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  Speaker 2: Monopolistic practices occur when a company dominates a market so
• 4:22
  Speaker 2: much that competitors just don't stand a chance.
• 4:25
  Speaker 1: And actually, Ticketmaster is absolutely dominating the ticketing industry.
• 4:29
  Speaker 2: Get this. In twenty twenty three alone, Ticketmaster distributed over
• 4:32
  Speaker 2: six hundred and twenty million tickets worldwide.
• 4:35
  Speaker 1: And actually, while dominating the board in the game of
• 4:37
  Speaker 1: monopoly might win you bragging rights. In the real world,
• 4:41
  Speaker 1: this dominance can stifle competition and hurt consumers.
• 4:44
  Speaker 2: These monopolies can lead to high prices and limit choices
• 4:47
  Speaker 2: for consumers. So the Justice Department is hoping to break
• 4:51
  Speaker 2: up Ticketmaster and Live Nation to reintroduce competition.
• 4:54
  Speaker 1: Which would hopefully lead to fair prices and.
• 4:56
  Speaker 2: Less swifty is crying over missed out.
• 4:58
  Speaker 1: Tickets for our third and final story. Dion Lee, the
• 5:02
  Speaker 1: Australian luxury fashion brand, has gone into voluntary administration and
• 5:06
  Speaker 1: it now joins a growing list of oussie fashion brands
• 5:09
  Speaker 1: with this non desirable status.
• 5:11
  Speaker 2: Another one bites the dust. This isn't looking good. Tell
• 5:14
  Speaker 2: us what's going on here?
• 5:15
  Speaker 1: Just kay so. Down Lee is the Australian fashion brand
• 5:17
  Speaker 1: that was started up in two thousand and nine and
• 5:19
  Speaker 1: is one of the few to have actually found international success.
• 5:22
  Speaker 2: Its designs have been worn by the likes of Taylor Swift,
• 5:25
  Speaker 2: Dua Lipa and Megan Markle.
• 5:26
  Speaker 1: And let me tell you, aha, I did a little
• 5:28
  Speaker 1: bit of digging and those designs cost a pretty penny. Yep.
• 5:31
  Speaker 2: Taylor Swift's d on Lee top that she wore to
• 5:33
  Speaker 2: this year's Super Bowl will set you back a casual
• 5:36
  Speaker 2: six hundred and fifty dollars.
• 5:37
  Speaker 1: And now the Australian arm of down Lee has entered
• 5:40
  Speaker 1: voluntary administration.
• 5:41
  Speaker 2: And this has come after retail chain Q said that
• 5:44
  Speaker 2: withdrawn their investment from d on.
• 5:46
  Speaker 1: Lee, which left the brand unable to stand on its own.
• 5:49
  Speaker 2: But the good news for now is that on Lee
• 5:51
  Speaker 2: will continue operating while under voluntary administration. So what is
• 5:54
  Speaker 2: the key learning here.
• 5:56
  Speaker 1: Voluntary administration is when a company's in financial trouble so
• 5:59
  Speaker 1: it brings in an exxternal administrator to take control of
• 6:02
  Speaker 1: the company's finances.
• 6:03
  Speaker 2: Entering administration is bad news and a lot of the
• 6:06
  Speaker 2: time it leads to companies having to shut down.
• 6:08
  Speaker 1: Think Alice McCall, Sneaker Boy, Arnsdorf.
• 6:11
  Speaker 2: These are all Australian fashion brands that have collapsed in
• 6:14
  Speaker 2: the last year after entering voluntary administration. But just going
• 6:17
  Speaker 2: into voluntary administration isn't always so doom and gloom.
• 6:20
  Speaker 1: Sometimes, in the process of pulling a company out of
• 6:23
  Speaker 1: a mountain of debt, administrators can actually give it a
• 6:25
  Speaker 1: new life.
• 6:26
  Speaker 2: Remember when swimwear brand ce Foley went into administration back
• 6:29
  Speaker 2: in twenty twenty. Its administrators initially thought the company was
• 6:33
  Speaker 2: done for, but.
• 6:34
  Speaker 1: After selling off some stores restructure its finances, Cefoley was
• 6:37
  Speaker 1: rescued for reported seventy million bucks.
• 6:40
  Speaker 2: So while it looks like Deon Lee's in its flop
• 6:42
  Speaker 2: era right now, financially speaking, there's always a chance that
• 6:45
  Speaker 2: it could make a comeback in the future.
• 6:47
  Speaker 1: Fox Fam. Checking your credit score every month is a
• 6:49
  Speaker 1: key part of your financial hygiene. To make sure you
• 6:51
  Speaker 1: download the Flux app and check out your credit score
• 6:54
  Speaker 1: this month.
• 6:54
  Speaker 2: Thanks for listening and receive you on Wednesday.