This is what the Flux.
I'm Bretton Justin and it's Wednesday, the twenty ninth of January, Joziewait. We know that TikTok has been given seventy five days to find a new owner of its US app or else it goes into the scrap heat. Now there are rumors that Oracle, the Cloud of Software Business, could take control of TikTok's operations in the US, and the same has.
Been said for Microsoft now as well.
Of course, all is rumor and innuendo right now, but the race is definitely heating up.
Flux Am. We are in the last couple of days of January. Now it is race past. But if you still want to get on top of your finances to start the year on a high and set yourself up for the most financially responsible year of your life, there is one place to go. It's in the Flux Academy. This month, in partnership with UP, we're giving away a heap of cash prizes for the top of the leaderboard. So make sure to check out New Year, New Financially.
Savvy Me Three revolutionary stories today, Jazzy boy, Let's do it for our first the AFL is renegotiating its major contract with betting agencies and book makers as it tries to take a bigger slice of the betting pie.
So please do money, tell me will be man?
Does you boy?
The AFL has been the most popular sport in Australia since way back in the early nineteen hundreds.
Yeah, today AFL is the most popular game in town, largely due to its number of fans, it's crowd sizes, and of course the four and a half billion dollar broadcast deal.
It's struck, but does it wait?
While the broadcast rights of the AFL's biggest money spinner, it has developed another lucrative revenue stream over the past decade.
Yeah, the afel's partnered with a range of book makers like tab Corps, sports Bet, Ladbrokes and Nez.
In fact, it's believed that the AFL makes up to forty million dollars in revenue from bookies each year.
But now, be man, the AFL isn't just content sitting in the back pocket. It wants a role in the midfield.
Yep.
They're looking for a bigger slice of the revenue that bookies make from AFL game and.
This will make it closer to the deal that the NRL struck with bookies through what is called product fees.
Ooh, so what is the key learning here? Product fees, also known as integrity fees, are essentially a fancy term for the way sporting leagues generate revenue from bookmaker now. These product fees are based on a percentage of a bookmaker's turnover or total revenue.
Whichever of the two figures is higher.
For example, the AFL is currently believed to earn zero point nine percent of bookie turnover from betting on AFL game.
But they want more. They want to increase this to one and a half percent of turnover from AFL game.
And this little arrangement is common across major sports.
Yeah, We've seen it with the NRL, the A League and the Australian Open as well.
So Jesse boy.
If the AFL does get its way, this new deal could see its revenue from bookies jump from forty mil to over fifty mil a year.
That is a lot of meat pies and new goalposts that we've under for our second story, Deep Seek, a new Chinese AI model has been released with rave reviews and as a result, in video's stock price drop.
More than seventeen percent.
Interesting. I want to know how these two alink b Man, so tell me more So.
Deep Seak was founded in just twenty twenty three, and they released their first large language model later that year.
But last month be Man deep Seek caught the eye of the whole AI industry when it released a UAI model and claimed it was on par with Open AI and more cost effective. In fact, b Man Deepseek claims it spent just five point six million US dollars on computing power.
For its AI model, compared to the billions of dollars US companies spent on their AI technology. And earlier this week, deep Seek's AI app became the number one downloaded app in the US App Store. Next minute in video share price, face plants seventeen percent, or more than five hundred and eighty nine billion US dollars in market value, and b Man.
The whole of Wall Street freaked out because deep Seek produced such good results at a fraction of the cost.
And this puts into question the amounts of resources and computer chips needed for all the AI companies in the US.
Very true, So what is the key learning here?
When a disruptive technology emerges, it forces both suppliers and competitors to reassess business models. For example, b Man and a loss of expected in video the AI chip designer to increase the AI shipments by between eight to ten percent in twenty twenty five. The expectation is that they'd sell thousands more AI chips to Meta, Amazon, Open Ai and co.
As they grow.
But all of a.
Sudden, Deep Seek has been able to do more with fewer chips, and that means demand for Nvidia's AI chips could shrink significantly. Then, on the other hand, there's AI companies like open Ai who have invested billions and billions into developing advanced AI models, and all of a sudden, Deep Seak manages to create a similar model for just over five million US dollars.
Wow, and be man for investors. Kind of calls into question the need for such massive investments in AI.
So it's no surprise the share price of Google's parent company Alphabet and Meta dropped four percent and two percent respectively.
What have they been spending on?
And even Donald Trump has got involved with do Boy, calling this a wake up call for US technology companies.
So be man. This challenger from China could shake up the whole AI industry if they're telling the truth.
For our third and final story, AARN Media, the owner of Kiss and Gold radio stations here in Australia, may want to buy nine entertainments talkback radio stations.
But there's a major obstacle ahead, a.
Bigger obstacle than the decline line in the radio market, I imagine.
So tell me more, okay.
So.
ARN Media is an Australian media company founded in nineteen eighty eight under the name Here, There and Everywhere.
They run more than fifty eight radio stations in thirty three different markets, including Kiss and Gold, Karter and iHeartRadio in Australia.
But does it Boy twenty twenty four was not kind for Arn. No, it's all a share price four by more than thirty percent over the past twelve months. It's also been trying to acquire Southern Cross Media recently, the owner of Triple M and HITFM, but has not been successful.
And now ARN Media's chairman has said he'd like to buy nine entertainments talk back radio stations.
Now to be Sydney's two GB, Melbourne three a W, Brisbane's four BC, alongside others.
Sounds like a great idea. All right, not so fast, though, Neil.
There's a major roadblock, and it's got a name, the Broadcasting Services Act nineteen ninety two.
This law says media companies can't own more than two commercial broadcasting licenses in one market, which means RN can't legally add nine stations to its radio list. But Aaron's chairman reckons these laws are outdated, particularly because radio stations are now competing against global music and streaming platforms.
So what is the key learning here?
Radio ownership laws were created for a world that no longer exists.
Yes, three decades ago, radio was the bee's knees. It was one of the primary ways that Australians consume news and formed opinions.
And these ownership laws meant that no single company could have too much influence.
Fast forward to today and audience has consumed content through podcasts, on demand, news apps and of course social media. In fact, then only twenty eight percent of Aussies aged eighteen to twenty four listen to the radio. Compare that to eighty four percent of Aussies listening to the radio who are over the age of seventy five. So ultimately, these companies will need to consolidate or innovate in order to survive FLUXAM.
We are giving away one hundred and fifty bucks to the first prize, one hundred to second, and fifty bucks to the third place in the Flux Academy this month. Make sure to download the Flux app and check out the Academy this month.
Thanks for listening and we'll see you on Friday.