Latest / What the Flux / Woolies hits the reset button | Life360's fam is growing | Fox Corp joins the streaming wars

Transcript

Woolies hits the reset button | Life360's fam is growing | Fox Corp joins the streaming wars · 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 fourteenth of May.
• 0:09
  Speaker 2: Dozyboy. While the trade wars between the US and China
• 0:12
  Speaker 2: maybe on pause for now, Australia's beef market has well
• 0:15
  Speaker 2: and truly benefited over the last six weeks or so.
• 0:18
  Speaker 1: Get this one.
• 0:19
  Speaker 2: Australia exported a record amount of beef of the month
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  Speaker 2: of April. That's because with tariffs on Chinese goods into
• 0:24
  Speaker 2: the US and vice versa, China ramped up its imports
• 0:27
  Speaker 2: of Australian beef.
• 0:28
  Speaker 1: Australia benefiting from the major beef between the US and China.
• 0:32
  Speaker 1: Sixty seven percent of the Flux family said they struggle
• 0:35
  Speaker 1: to track their spending every single month, and that is
• 0:37
  Speaker 1: because they're either doing it by paper in their notes
• 0:40
  Speaker 1: out even on a really poor spreadsheet. That is why
• 0:42
  Speaker 1: the Flux budgeting tool is so valuable. It tracks all
• 0:45
  Speaker 1: you're spending in the one place and categorizes all your
• 0:47
  Speaker 1: spending to show you how much and where you're spending
• 0:50
  Speaker 1: every single month. So don't go back to paper or spreadsheets.
• 0:54
  Speaker 1: Make sure to download flocks out to check it out.
• 0:56
  Speaker 2: Three concise stories today Dozy Boy, let's do it for
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  Speaker 2: our first. Woolies is planning to go through a major
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  Speaker 2: reset by cutting grocery prices to regain its declining market share.
• 1:07
  Speaker 1: Well, it's panicking that Coals is cutting their literal lunchy man,
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  Speaker 1: so tell me all.
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  Speaker 2: Woolies is one of Australia's big two supermarket giants.
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  Speaker 1: Together with Coals, they control around seventy three percent of
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  Speaker 1: Australia's one hundred billion dollar grocery sector.
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  Speaker 2: Now, Woolies has had a rough public relations run over
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  Speaker 2: the past couple of years.
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  Speaker 1: Yep, there were CEO missteps, there was an acid probe
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  Speaker 1: and now they're no longer the main supermarket for Ozzie's
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  Speaker 1: and now.
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  Speaker 2: Wooly CEO has announced plans to cut prices across nearly
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  Speaker 2: four hundred products.
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  Speaker 1: At an average of a ten percent reduction.
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  Speaker 2: And Jazie Boy, the Wooly CEO, says it's all about
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  Speaker 2: rebuilding trust.
• 1:40
  Speaker 1: Code word for trying to recover lost market share.
• 1:43
  Speaker 2: The plan is to invest over one hundred million bucks
• 1:45
  Speaker 2: in this pricing shift, and the man, like Coals has
• 1:48
  Speaker 2: done already, the focus is on deeper but fewer discounts.
• 1:51
  Speaker 1: In particular, on the known value items, So what is
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  Speaker 1: the key learning here? Known value items aka kvis are
• 1:59
  Speaker 1: products that consumers purchase often and are highly priced sensitive about.
• 2:03
  Speaker 1: Think milk, think bread, think pasta and eggs.
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  Speaker 2: All the questions that politicians get hit with and often
• 2:09
  Speaker 2: get wrong.
• 2:10
  Speaker 1: Yep, and be man. Research by Bane, the consulting firm,
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  Speaker 1: shows that shoppers don't remember every special they see.
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  Speaker 2: But they do remember the price of milk, bread and pasta.
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  Speaker 1: So if a supermarket nails the price of their kvis,
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  Speaker 1: customers assume everything is cheap. Woolies is hoping to reprogram shoppers'
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  Speaker 1: brains to think wool is cheap again. Yep. The hope
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  Speaker 1: is that this shift will change our shoppers view their
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  Speaker 1: brand long term. Yeah.
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  Speaker 2: Pre pandemic, forty four percent of Australians listed Woolies as
• 2:35
  Speaker 2: their main supermarket, but now it's just thirty seven percent,
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  Speaker 2: So be man.
• 2:38
  Speaker 1: Woolies is hoping these price carts will help reshape their
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  Speaker 1: consumer perception and make them a number one once again.
• 2:44
  Speaker 2: For our second story, Life three sixty, the family tracking
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  Speaker 2: app has seen its share price jump more than thirteen
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  Speaker 2: percent after its paid subscriptions skyrocketed.
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  Speaker 1: Tracking your off spree is now just good parenting and
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  Speaker 1: not preepy, So tell me more well.
• 2:58
  Speaker 2: Life three sixty is a US based company that launched
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  Speaker 2: in two thousand and eight and it listed on the
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  Speaker 2: ASX in twenty nineteen.
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  Speaker 1: Yeah. It offers family location sharing and safety features, one.
• 3:07
  Speaker 2: Of the first apps to make tracking your child's every
• 3:09
  Speaker 2: move feel more love based than lawsuit.
• 3:13
  Speaker 1: Worthy and b Man. Life three sixty CEO reckons that
• 3:16
  Speaker 1: its tracking products have become a daily essential for families
• 3:20
  Speaker 1: and be Man. The numbers kind of agree with him,
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  Speaker 1: because Life three sixties revenue jumped over thirty two percent
• 3:25
  Speaker 1: for the March quarter, and as paying subscribers grew forty
• 3:27
  Speaker 1: three percent as well. The only hiccup was in its
• 3:30
  Speaker 1: hardware sales from products like tile, which dropped thirteen percent.
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  Speaker 2: But investors didn't care one bit because its share price
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  Speaker 2: spiked thirteen percent.
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  Speaker 1: And that's because Life three sixties revenue mix is looking
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  Speaker 1: a lot more juicy.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Not all revenues are created equally.
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  Speaker 2: You see juz Boy, Life three sixty has consistently shifted
• 3:49
  Speaker 2: its revenue mix over the past few years.
• 3:51
  Speaker 1: And be Man investors love subscription based businesses because they're
• 3:54
  Speaker 1: predictable and have a recurring revenue yeap.
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  Speaker 2: Life three sixty has two point four million pay customers,
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  Speaker 2: which means a consistent stream of income month after month,
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  Speaker 2: and even.
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  Speaker 1: If it's hardware sales dips, the recurring revenue cushions the blur.
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  Speaker 2: But it's not the only reason that investors love subscriptions.
• 4:09
  Speaker 1: Nope. The other reason is subscription models also scale really well.
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  Speaker 2: Yep. Once a platform is up and running, it generally
• 4:15
  Speaker 2: cost peanuts to add more users, and with Life three
• 4:18
  Speaker 2: sixties new revenue mix, it's no surprise that its share
• 4:21
  Speaker 2: price went up thirteen percent.
• 4:23
  Speaker 1: For our third and final story, Fox Corp. Is launching
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  Speaker 1: its own streaming service called Fox One that it doesn't
• 4:29
  Speaker 1: want to kill it's PATV business. In the process, another
• 4:32
  Speaker 1: streamer enters the group chat tell me more so. Twenty
• 4:34
  Speaker 1: first century Fox was the big shop media empire behind
• 4:37
  Speaker 1: twentieth century Fox National Geographic, as well as Fox News
• 4:41
  Speaker 1: and Fox Sports.
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  Speaker 2: That you'll remember. In twenty nineteen, Disney came along and
• 4:44
  Speaker 2: acquired the majority of twenty first century Fox's assets, But
• 4:47
  Speaker 2: Disney didn't buy Fox News, Fox Sports, and Fox Entertainment,
• 4:50
  Speaker 2: which now sits under the Fox.
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  Speaker 1: Corp brand and then man, these are some of the
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  Speaker 1: OG channels in the PATV game, or keyble as the
• 4:57
  Speaker 1: Americans like to call it.
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  Speaker 2: And now Fox Corp. Has announced plans to launch a
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  Speaker 2: new streaming service called Fox One to compete against the
• 5:03
  Speaker 2: big dogs and cats of streaming.
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  Speaker 1: And Fox's goal is to attract what they call cord never's.
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  Speaker 2: In other words, people who have never paid for cable
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  Speaker 2: TV in their life.
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  Speaker 1: Because they're desperate not to lose their existing PATV customers
• 5:16
  Speaker 1: as part of this new offer.
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  Speaker 2: So what is the key learning here?
• 5:20
  Speaker 1: Product cannibalization is when a company's new product eats into
• 5:23
  Speaker 1: the market share or revenue of an existing product.
• 5:25
  Speaker 2: Ideally, you launch something new to expand your total market.
• 5:28
  Speaker 1: But sometimes your latest innovation just ends up eating some
• 5:32
  Speaker 1: of your existing offering. A classic example is Apple and
• 5:35
  Speaker 1: the iPhone YEP. When Apple launched the iPhone in two
• 5:37
  Speaker 1: thousand and seven, the iPod was absolutely booming.
• 5:40
  Speaker 2: But the iPhone did everything the iPod did, plus a
• 5:43
  Speaker 2: whole lot more, and by twenty eleven, the iPhone sales
• 5:45
  Speaker 2: had overtaken iPod sales and eventually obliterated the iPod altogether.
• 5:50
  Speaker 2: Total cannibalization.
• 5:51
  Speaker 1: But the man. If Apple didn't launch the iPhone, someone
• 5:54
  Speaker 1: else would have filled that innovation gap.
• 5:56
  Speaker 2: And the iPod would have faded away anyway.
• 5:59
  Speaker 1: So Apple chose to disrupt itself rather than let someone else.
• 6:02
  Speaker 2: Do it, and does it boy. While Fox is trying
• 6:04
  Speaker 2: not to cannibalize its cable customers with Fox one, sometimes
• 6:07
  Speaker 2: cannibalization needs to become a strategic move to just stay relevant.
• 6:11
  Speaker 1: Seventy three percent of the Flex family have absolutely no
• 6:14
  Speaker 1: idea how much money they spend each and every month,
• 6:17
  Speaker 1: and that means it becomes a lot harder to say.
• 6:19
  Speaker 1: That's why the Flux Budgeting tool helps you identify how
• 6:22
  Speaker 1: much you've spent each and every month, compares it against
• 6:24
  Speaker 1: the last month, and even categorizes all your transactions. It
• 6:27
  Speaker 1: takes less than thirty seconds to connect and will help
• 6:29
  Speaker 1: you get on your saving journey. Make sure to download
• 6:31
  Speaker 1: the Flux app and check out the budgeting tool.
• 6:33
  Speaker 2: Thanks for listening, and we'll see you on Friday.