Latest / What the Flux / Foxtel's new owner hikes prices | TikTok sells to US investors | Gold and silver break records

Transcript

Foxtel's new owner hikes prices | TikTok sells to US investors | Gold and silver break records · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm bred and I'm justin and it's Monday, the twenty
• 0:09
  Speaker 2: eighth of January.
• 0:09
  Speaker 1: Juzzy Boy. A new EV consumer survey by Car Sales
• 0:12
  Speaker 1: shows that EV consideration amongst Australians has flatlined at thirty
• 0:17
  Speaker 1: six percent. The main concern, Well, Ozzie's are very worried
• 0:21
  Speaker 1: about the battery life and longevity and my iPhone battery
• 0:24
  Speaker 1: is anything like EV battery. I really understand the concern.
• 0:28
  Speaker 2: I get it as well. Be man, you don't want
• 0:29
  Speaker 2: to be stuck in the middle of nowhere. We know
• 0:31
  Speaker 2: EV battery. No wait, fx am. As we end the
• 0:33
  Speaker 2: month of January, when you set new financial goal, now's
• 0:35
  Speaker 2: the time to have a look at how are you
• 0:37
  Speaker 2: spending and savings going for the month. If you want
• 0:38
  Speaker 2: to done in the easiest way possible, in the Flux
• 0:40
  Speaker 2: budget tool, you can connect your ban accounts and see
• 0:43
  Speaker 2: all your spending and saving in the one spot in
• 0:45
  Speaker 2: under thirty seconds. If you want to track your spending
• 0:47
  Speaker 2: the easiest way, make sure to download the Flux out
• 0:49
  Speaker 2: and check out the budgeting.
• 0:50
  Speaker 1: All three massive stories today, Juzzy Boy, let's do it
• 0:53
  Speaker 1: for our first ko the sports streaming platform is jacking
• 0:56
  Speaker 1: up their prices by fifteen percent as it's a new
• 0:59
  Speaker 1: owner looks to squeeze more value from live sport.
• 1:02
  Speaker 2: That's a real love hate relationship with kob Man.
• 1:04
  Speaker 1: So tell me all, all right. So KO is the
• 1:06
  Speaker 1: Australian sports streaming platform creded by Foxtel back in twenty eighteen.
• 1:11
  Speaker 2: And over the past seven years it's grown to nearly
• 1:13
  Speaker 2: one and a half million subscribers.
• 1:15
  Speaker 1: We're talking AFL, NRL and cricket and a whole lot
• 1:19
  Speaker 1: more as well.
• 1:19
  Speaker 2: Now, be man, you may remember that Ko's parent company,
• 1:21
  Speaker 2: Foxfel was sold to Dezone three point four billion dollars
• 1:25
  Speaker 2: in late twenty twenty four and now de Zone is
• 1:27
  Speaker 2: pushing for stronger returns from KO, so it's jacking up
• 1:30
  Speaker 2: dem prices. We'd been talking a jump of roughly fifteen percent,
• 1:33
  Speaker 2: meaning KO costs get this forty six dollars a month,
• 1:36
  Speaker 2: a very large number. Juzzy boy, it is how a
• 1:38
  Speaker 2: Zone claim. The reason is because of rising sports broadcast rights.
• 1:42
  Speaker 1: And might I remind you that Foxtel, alongside seven and
• 1:46
  Speaker 1: Telstrap paid four and a half billion dollars for the
• 1:48
  Speaker 1: AFL rights.
• 1:48
  Speaker 2: They also paid one and a half billion alongside seven
• 1:51
  Speaker 2: for the cricket.
• 1:51
  Speaker 1: Rights, and they also said that the production costs are growing.
• 1:55
  Speaker 1: They're more focused on chasing yield from existing customers over
• 1:58
  Speaker 1: growth from new ones. So what is the key learning here?
• 2:01
  Speaker 1: Yield overgrowth is when a business focuses on making more
• 2:04
  Speaker 1: money from the customers it currently has instead of chasing
• 2:07
  Speaker 1: lots of new customers.
• 2:08
  Speaker 2: And it's a shift that many mature subscription businesses make
• 2:11
  Speaker 2: once their rapid user growth starts to slow.
• 2:14
  Speaker 1: We know how it generally works in the early days.
• 2:16
  Speaker 1: Tech platforms or media platforms in this case will typically
• 2:18
  Speaker 1: chase subscribers at any cost. They'll offer cheap pricing, they'll
• 2:22
  Speaker 1: dish out free trials, now'll pump out the heavy marketing
• 2:25
  Speaker 1: and obviously this stage is really all about growth and scale.
• 2:28
  Speaker 2: But once a service hit saturation, the focus often changes
• 2:30
  Speaker 2: to make a more mola from the customers they already have.
• 2:33
  Speaker 1: And given the cost of the broadcast rights to Zone
• 2:36
  Speaker 1: is very focused on making back some of that dough
• 2:38
  Speaker 1: and the man they ain't the only ones now stand.
• 2:41
  Speaker 1: Sport recently lifted their prices by nineteen percent after they
• 2:44
  Speaker 1: added the Premier League.
• 2:45
  Speaker 2: And competitors like Paramount Plus and Disney Plus. They're also
• 2:48
  Speaker 2: on the hunt for more live sport too.
• 2:49
  Speaker 1: The thinking is that small price increases can drive profits
• 2:52
  Speaker 1: far faster than chasing new users in a crowded market.
• 2:56
  Speaker 2: The risk is if they push prices too far, it
• 2:58
  Speaker 2: might force customers to chair. For our second story, ByteDance
• 3:02
  Speaker 2: has officially sold off its US based TikTok business to
• 3:05
  Speaker 2: a range of big US investors and tech firms to
• 3:07
  Speaker 2: stay alive and user scrolling in the country.
• 3:10
  Speaker 1: Really didn't think we'd ever get here, Jazzi boys, So
• 3:12
  Speaker 1: tell me more.
• 3:12
  Speaker 2: Okay, So we own to TikTok, the social media app
• 3:14
  Speaker 2: that's taken the world by an algorithmic.
• 3:16
  Speaker 1: Storm faster social app to hit one billion monthly users
• 3:20
  Speaker 1: and in.
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  Speaker 2: Twenty twenty five b man the average TikTok user watched
• 3:23
  Speaker 2: six hundred hours on the platform, more than one and
• 3:25
  Speaker 2: a half hours per day. But the elephant in the
• 3:27
  Speaker 2: room here is that TikTok is owned by Byedance, which
• 3:30
  Speaker 2: is a Chinese tech giant, and Bydance has been facing
• 3:33
  Speaker 2: a lot of heat in the US since about.
• 3:35
  Speaker 1: Twenty twenty, mainly because of concerns that American user data
• 3:38
  Speaker 1: could be accessed by China.
• 3:39
  Speaker 2: Remember there was a hot minute early last year when
• 3:41
  Speaker 2: TikTok and the US was shut down for about twenty
• 3:43
  Speaker 2: four hours.
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  Speaker 1: Yeah, I do. It was all part of the US
• 3:46
  Speaker 1: government's threat to TikTok either sell to the US or
• 3:49
  Speaker 1: face shutdown.
• 3:50
  Speaker 2: And now Bydance has officially finalized a deal to sell
• 3:53
  Speaker 2: its US business to a range of US investors, including
• 3:55
  Speaker 2: Oracle and private equity player silver.
• 3:58
  Speaker 1: Lake and Byte. Dance will retain just to twenty percent
• 4:00
  Speaker 1: of the new US company.
• 4:02
  Speaker 2: And the man the US government got what they wanted
• 4:04
  Speaker 2: because the data will now be hosted on Oracle's American cloud.
• 4:07
  Speaker 1: And how much are we talking here?
• 4:09
  Speaker 2: Juzi boy Ll reports estimate that TikTok Us is valued
• 4:11
  Speaker 2: at approximately fourteen billion US dollars.
• 4:14
  Speaker 1: Sounds like a bit of a steal for these new investors.
• 4:17
  Speaker 2: So what is the key learning here?
• 4:18
  Speaker 1: Valuing part of a platform is far harder than valuing
• 4:21
  Speaker 1: the entire thing.
• 4:22
  Speaker 2: When you spit out the cold hard numbers of TikTok usb, man,
• 4:24
  Speaker 2: the report at fourteen bill looks.
• 4:26
  Speaker 1: Very light, all right, run me through the numbers, statman.
• 4:30
  Speaker 2: Well, there are over two hundred million TikTok users in
• 4:32
  Speaker 2: the US.
• 4:33
  Speaker 1: Which is about sixty percent of all US citizens.
• 4:35
  Speaker 2: And TikTok generates more than ten billion US dollars per
• 4:38
  Speaker 2: annum in revenue from the US alone. Now, if we
• 4:40
  Speaker 2: compare that against competitors like Meta, which trades about ten
• 4:43
  Speaker 2: times at sales, and Alphabet, which trades it about eight
• 4:46
  Speaker 2: times its sales.
• 4:47
  Speaker 1: This would mean based on revenue alone, TikTok Us could
• 4:50
  Speaker 1: be valued at eighty to one hundred billion dollars, and
• 4:52
  Speaker 1: other analysts have.
• 4:53
  Speaker 2: Estimated that TikTok Us is worth closer to forty bill
• 4:56
  Speaker 2: if it doesn't include the algorithm.
• 4:57
  Speaker 1: So why the giant gap year juzzy boy.
• 4:59
  Speaker 2: Well, when government moments and regulation get involved, it kind
• 5:02
  Speaker 2: of becomes more about staying alive rather than getting the
• 5:04
  Speaker 2: best price.
• 5:05
  Speaker 1: So this looks less like fair value and more like
• 5:07
  Speaker 1: the price of compromise to remain alive.
• 5:10
  Speaker 2: For our third and final story, the price of gold
• 5:13
  Speaker 2: and silver have both hit record highs as investors have
• 5:16
  Speaker 2: ditched the US dollar for the shiny medals.
• 5:18
  Speaker 1: Shiny rocks are having a really serious moment here, So
• 5:21
  Speaker 1: tell me more.
• 5:21
  Speaker 2: Okay, So gold, we know b man has been used
• 5:23
  Speaker 2: as a store of value for thousands of years.
• 5:26
  Speaker 1: And I know you love, We're going to teach you
• 5:27
  Speaker 1: some history. Juzzy boy. We're talking back in three thousand
• 5:30
  Speaker 1: BC when gold was first used as a store of value,
• 5:33
  Speaker 1: back in ancient Mesopotamia and Egypt.
• 5:35
  Speaker 2: Did not expect a history lesson today.
• 5:37
  Speaker 1: But in more recent times, gold has been considered a
• 5:40
  Speaker 1: safe haven investment.
• 5:41
  Speaker 2: It's what investors turn to when confidence in governments and
• 5:44
  Speaker 2: currencies or markets start to wobble.
• 5:46
  Speaker 1: And right now there's a whole lot of wobbling going on.
• 5:48
  Speaker 2: And that's why gold prices have smashed through five thousand
• 5:51
  Speaker 2: US dollars an ounce for the first time ever.
• 5:53
  Speaker 1: And only gold. Silver has also smashed through the one
• 5:56
  Speaker 1: hundred and ten US dollar an ounce mark for the
• 5:58
  Speaker 1: very first time.
• 5:59
  Speaker 2: And b Man Gold is coming off its best annual
• 6:01
  Speaker 2: performance since nineteen seventy nine. And while this is good
• 6:04
  Speaker 2: for gold holders, it's also a signal that investors are
• 6:07
  Speaker 2: feeling pretty uneasy about the global economy.
• 6:09
  Speaker 1: And there is a lot of debasement trading happening right now.
• 6:13
  Speaker 2: So what is the key learning here?
• 6:15
  Speaker 1: Debasement trading is an investment strategy where investors shift their
• 6:18
  Speaker 1: capital from fit currencies and traditional assets into hard assets
• 6:22
  Speaker 1: like your friend gold, and.
• 6:23
  Speaker 2: Governments borrow heavily and they run up huge debts. Investors
• 6:27
  Speaker 2: start to worry the value of money will slowly but
• 6:30
  Speaker 2: surely be watered down over time.
• 6:32
  Speaker 1: So instead of holding cash or currencies that might lose
• 6:34
  Speaker 1: buying power, investors move into assets that cannot be easily
• 6:38
  Speaker 1: created or printed.
• 6:39
  Speaker 2: Throw on top of that a bit of geopolitical instability,
• 6:41
  Speaker 2: and you have a recipe for the shiny metals Fox Sam.
• 6:44
  Speaker 2: If you're wondering where all your money has gone in
• 6:46
  Speaker 2: the month of January, Flux app is the place to
• 6:48
  Speaker 2: find out in just thirty seconds if you connect your
• 6:50
  Speaker 2: accounts to make sure to download the Flux app if
• 6:52
  Speaker 2: you want to get on top of your money.
• 6:53
  Speaker 1: Thanks for listening and we'll see you on Friday.