This is what the flux.
I'm justin and I'm harsh Deep and it's Wednesday, the twenty ninth of May.
A see a lot of Ossie's are watching Netflix right now. And Netflix is benefiting from this big time. Get this, It made more than one point one billion dollars from Australian consumers last year.
Wow.
But he actually shifted more than one billion dollars of that revenue to its US parent company. So that means the Flicks pay tax on just eight percent of its Australian generated revenue. And I kind of feel like Assi's this gives us justification for password sharing.
I agree. I think so too. As we often hear about journaling about your thoughts or your day or creativity. But have you ever reflected on where you're at with your money? In the flux sapp, We've built a money check in which asks you five simple questions and shows you a score of where you're at with your money this month, So make sure to download the Flux SAP and do the money check in before the end of this month.
Three reflective stories today, let's get into it. For our first set, the Australian Luxury Goods Marketplace has seen at share price jump more than ten percent early this week after it denied allegations that has fake products on its platform.
Seems strange that a denial of something really bad has actually seen a share price jumper. Tell me more.
Okay. So, Setire is the luxury goods marketplace that was founded back in twenty seventeen and listed on the ASEX in December twenty twenty, and just.
Since those early days, Satire has grown to over one million orders per year.
And they're not selling anchor or home brand products. We're talking high end brands like Louis Vuitton, Mike Prada, Valentino.
But there has been a lot of controversy around set Tire, largely because it doesn't deal directly with the high end brands, and.
That's raised some serious concerns about the quality as well as the origin of the products that are sold on their website.
Am I getting a two thousand dollars discount on a genuine Balenciaga bag or am I paying a serious markup for a knockoff?
So actually, a global due diligence firm, which has done more than one hundred thousand investigations, has now done a deep dive into and.
They found a complex company structure, opaque supply and logistics network, and a poor complaints handling process.
It's fair to say that is all major cause for concern.
But then Satire released a report saying that they reject entirely the allegations, and.
The story gets juhd because Setia also said this ju Diligence firm was commissioned to do the report by a short.
Seller and the goal of this report was to dent the share price of Satire to the benefit of the short seller.
Next thing you know, share price up ten percent.
So tell me what is the key learning here.
Short Selling is the process of selling shares to someone at current prices with the aim of buying them back later at a lower.
Price, and it's done by borrowing shares of a company from a broker first. Often, short sellers will do a lot of investigative research on a.
Company, understanding company structures, who their supplies, are, speaking to their customers.
And once they have conviction that something is a little bit fishy, they'll take a short position in that company.
And then often release the report to the mark highlighting all the fishy stuff going on. All in all, it's kind of hard to know right now whether the report inter Setire is accurate, but we do know.
That it didn't seem to face satires investors.
For our second story, Petstock, the pet food retailer backed by Woolworths, has been forced to sell over forty of its stores and has created a new major competitor in the process.
Wall is really battling to become the top dog.
Here.
Tell me more about this one.
Okay. So Petstock started back in nineteen ninety five in a regional town in Victoria called Ballarat.
And since then it's grown to become Australia's second biggest pet retailer.
We're talking two hundred and seventy six stores and a loyal path of more than two point four million members.
Quick reminder. In December twenty twenty two, Woolworths acquired a fifty five percent steak in Petstock for five hundred and eighty six million dollars.
But that was subject to the hubal Ce reviewing the deal.
And review the deal they did. In order to get the deal done, Petstock was forced to sell forty one of its stores and twenty five co located vet clinics, and those stores and vet clinics have been sold to pet Oh for an undisclosed amount.
But what we do know is that the sale of these stores will triple pet O's revenue into over two hundred million dollars perameter, and.
This will mean pet O is marketing its territory as the third biggest pet retailer in Australia according to IBS welt Wow.
So what is the key learning here?
Regulatory decisions aimed at creating market competition can sometimes lead to unintended consequences for companies.
Or intended consequences for the Atria'll see you see JS.
Woolwort's acquisition of pet Stock was all part of their plan to dominate the pet space.
But because of concerns around competition force them to divest a number of the pet Stock.
Assets that included the brand's best Friends, Our Vet, My pet Warehouse and pet City.
The challenge from Woolworths was to find a buyer for those pet Stock assets without inadvertently creating a stronger competitor.
So by selling these stores to pet O, a smaller chain at the time, Wilworts has effectively enabled Peto to triple its revenue.
And contributed to the rise of a significant new player in the ten billion dollar pet sector.
For our third and final story, TPG has come out and said that tech giants like Google and Meta should be made to pay for telco infrastructure.
That is sure to grind the gears of tech CEOs. So what is the story here?
TPG is the third largest telco company in Australia with over five point eight million subscribers, and.
It's the parent company of other telco brands like Mootaphone, i Net and Labara.
Now TPG has publicly come out against tech giants and said that they should be made to pay for the rollout of five G networks and telco infrastructure.
Shots fired. TPG reckons that tech companies like Google and Netflix they make massive profit off the back of Australia's telco networks.
And that they encourage people to consume more data by watching Bridgeton and Baby Reindeer marathons.
But ah, these tech companies don't spend a single dollar on the internet infrastructure that they rely on. So tell me, H, what is the key learning here?
When an industry is benefiting at the cost of another, sometimes regulators need to step in to create a fair outcome.
Meanwhile, tech giants have started pushing back against this idea of paying for Internet access. They're even calling it the Internet Task.
But TPGs not the first to take.
This stance, Nope. In fact, regulatory bodies in the EU, in South Korea, and India have all started working on a solution as well.
Because get this, Jazz, Google, Netflix, Meta, Apple, Amazon, and Microsoft together generate nearly half of all Internet.
Traffic, and as the digital economy expands, so does the need for strong Internet infrastructure. Flex sam if you're looking at journaling about your emotions, your feelings, one add a financial check in as well. We've got it all covered in the Flux app with our money check in. To download the Flex app and do the money check in.
Thanks for listening and we'll see you on Friday.