Afterpay gets regulated | Siri lets us down...again | WarnerBros Discovery breaks up

This is what the Flux I'm brandan, I'm justin and at Wednesday, eleventh of June.

Does await the cost of your strong skinny latte is said to increase. We're talking about the perfect storm in a coffee cup. Falling supply, surging demand and stubborn the inflation. In fact, I'm expecting at Australia's medium coffee prices need to increase to between eight and twelve bucks per cup to make it fible for cafes.

All right, I'm never leaving the house again, no box. Sam. Speaking of saving money so you can afford to have a coffee, have you checked out the Flux budgeting tool. It is the greatest way to track all of your spending and saving in the one place. It shows you categories of where you spend. It shows you what you spent last month. So if you're looking to save some money, you can spend eight to twelve dollars on a cup of coffee. Make sure to check the budgeting tool in

Three full stories today. Juzzy Boy, let's do it for our first. After Pay and all other buy now, pay later lenders just got slapped with the same laws as credit card lenders and that means tighter lending criteria.

Did buy now pay latter just graduate from rebellious team to rule following out alp man? What is happening here? All right?

So after Pay is the buy now, pay later that hit the scenes in twenty fourteen.

And they man, you'd be familiar with its pay in forour model where revolutionized how millions of Australians paid for clothes and beauty treatments and even flights.

In fact, after they listed on the ASX in twenty sixteen at a one hundred and fifty million dollar market cap, and.

It grew so rapidly that it was officially acquired in twenty twenty two the thirty nine billion dollars by Block and Juzzy Boy.

Well after Pay may have capped out on its hyper growth in Australia, it keeps growing overseas.

Yet after Pay processed over fifty billion dollars worth of sales last year, which is more than double what they did just three years ago.

But Juzzy Boy from yesterday, all buy now, pay later providers in Australia will need to start collecting income and expense information so.

That they can assess whether the loan is suitable for the applicant.

Just like traditional credit providers. And while this gives some more legitimacy to bind our pay later, it also limits after Pay's ability to bypass lending laws.

Yep, So what is the key learning here?

When regulation lags behind innovation, the new innovative players really thrive, but once.

The regulation catches up, only the strongest will survive.

We know that after Pay was able to supercharge its growth because it didn't have to play by the same strict rules as banks and credit card providers.

No credit checks, no responsible lending obligations, and it meant that.

They could scale quickly without the red tape that others face.

But now be Man, the new rules bring bind our pay lated players like after Pay under the same regulatory umbrella as other credit providers.

But Joe Boy, thankfully for after Pay Australia has become a much smaller fraction of its entire business.

In fact, a man after pay has around three and a half million customers in Australia.

And twenty four million customers globally, so be man.

The real test now is whether after pay can keep its edge when the playing field is finally.

Level, and whether Australia even matters to after pay and Block anymore, or our second story.

Apple has announced slick new updates at its developer conference, but it has kicked the SII AI overhaul further down the road.

I got sucked into buying the latest iPhone for its AI, but I'm stuck with Siri.

Tell me more. As Apple's founded in nineteen seventy six, it's now the world's largest company by market count.

Thanks to it's very shalick products like the iPhone, mac Apple Watch, and the Man.

Each year, Apple has its big nerd conference called Worldwide Developers Conference or WWDC, and at.

This nerd conference, Apple announces many of its new features and products for the year ahead.

One of the big changes is that Apple won't be calling its mac os updates things like Yosemite or Mountain Lion or Big sur anymore.

Norp It'll be named in line with the year it was released, except it's one year ahead, so this year's update will be called iOS twenty six mac OS twenty six.

How futuristic. But then, man, I do remember last year Apple promised some big, big improvements to the AI in iPhones.

It did, but despite the big build up last year, Apple hyped AI powered Siri still is not ready.

Apparently, quality issues have held about yep.

Apple's internal tests basically showed that Siri only worked properly two thirds of the time. But even worse, Apple hasn't even committed to a release date anymore because it wants to perfect the product before release.

So what is the key learning here? In tech?

Being too early can be costly, but being too late can be fatal.

Man, we know that Apple has long been known for its patients in product development.

It didn't launch the first smartphones or the smart watch, but when it does enter a market, it tends to reshape it.

In fact, the man when Apple released the iPhone, it totally Squashednokia and BlackBerry.

In two thousand and five, Apple didn't even exist in the mobile phone market.

Now it has nearly twenty percent of market share, with many many more competitive plays in the market too.

And that's the benefit of a strategic delay.

You get time to refine, observe competitors, and deliver something more polished.

But the way, if Apple waits too long on Siri and AI integrations, it may risk losing out for the long term. For our third and final story, Warner Brothers Discovery is splitting into two companies, one for streaming, one for old school TV so that they can better compete Warner.

Brother's Discovery, taking a page out of the corporate breakup playbook B Man, So tell me more? All right? So, Warner Bros.

Discovery formed in twenty twenty two after a forty three billion dollar mega merger between Warner Media and Discovery.

Fun fact of your b Man. That merger came with a whopping fifty billion US dollars in depth and josep.

Wait, while Warner Brothers Discovery has already chipped away twenty bill, there's still a long way to go.

And now Warner Brothers Discovery has announced it's splitting into two separately listed public companies.

So merged two companies in twenty twenty two, and now is splitting up the merged company into a different slute.

One will house its streaming and film studios.

Think HBO, Warner Brothers Pictures, DC Studios.

And the other will keep its TV networks like CNN, TNT Sports, and Discovery Bust. It will also keep some digital assets, though, like Bleacher Report and Discovery's streaming service Discovery Plus and.

Does It Wait, and most of the debt will sit with the t V networks business.

It's all part of the corporate split up to help investors know what they're getting with each part of the business. So what is the key learning here? A corporate spin off is when a company separates part of its operations into a new, independent business.

Shareholders of the parent company typically received shares in both new entities. In Warner Brothers Discoveries case, the split separates the fast growing content art from the slower moving TV business.

You can back the streaming upside without worrying about the TV decline.

And Warner Brothers Discovery isn't the first media giant to pull the old split to survive maneuver.

Nope, remember when Fox Corp. And twenty first Century Fox did it in twenty nineteen.

Viacom split into Viacom and CBS back in two thousand and five and then re merged in twenty nineteen when it became paramount global savy man.

This is just a natural case of emerging the merging buck dam. Just a little remind aut we'll be taking a break from early next week and we'll be back on the pod on July nine.

Thanks for listening and we'll see you on Friday.