This is what the Flux.
I'm Brett and I'm Justin and it's Monday, the twelfth of August.
Study boy. You may have noticed Meta's new AI chat fot over the past few weeks on install, Facebook, WhatsApp. Now, the problem is it isn't very smart. Reports are that it's failing some pretty simple year eight math.
Wow.
So the big question is have can you trusted to write your UNI essay when it can't even solve a basic maths problem.
Lots of hallucinations going on, b man, uh huh. Now the numbers are in sixty six percent of Flux users have no idea how many subscriptions they've got Netflix and Spotify and Amazon Prime, Apple, like Cloud Gym memberships. Honestly, it never ends, and that's why we're so excited to launch the Flux Subscription track app. It takes thirty seconds to securely connect your account, and our subscription wizard will identify all of the subscriptions in the one spot, including
when they are coming out. The man, I've gotta be honest, it's already saved me hundreds of dollars. So flox am if you want to see all your suscriptions in one spot. Make sure to check it out in the budgeting feature of the Flux app.
Three two good to be true stories Today, Juzzy Boys, let's do it for our first NewsCorp. The publishing behemoth has officially put Foxtel and its streaming services up for sale.
Just really starting to turn that Foxtel ship for around by man, so tell me more so.
Juzzy Boy News Corp. Is the company behind a whole heap of newspapers like The Herald Sun and The Australian.
As well as the Wall Street Journal and the majority stake in the Aria Group, which is the owner of real estate dot com dot AU.
Oh and they also happen to own sixty five percent of Foxtel.
The other thirty five percent is owned by the tell part of the name that'd be Telstrat.
And that was when they joined forces and launched Foxtel in nineteen and ninety five.
Man Well, Foxdale's PATV was the go to service in its heyday. Its subscriber numbers have been rapidly declining over the past five.
Years, mainly thank you to the growth of streaming services.
In fact, there are only now around one and a half million fox stale subscribers in Australia.
But Foxdale rolled out ko It's sports streaming service.
It rolled out binge it's entertainment streaming service.
It also rolled out Flash, its new streaming service, which I use daily Judge.
I didn't at its total fox sale subscriber base has grown back to four point seven million people.
But now juzzy Boy News Corp has said that Foxtel is up for sale for about the tenth time. Foxel claims that it has received third party interest.
But getting Foxtel back to peak profitability might just be too hard for News Corp.
So what is the key learning here?
The shift to digital content might be easy for viewers, but it's very hard on the margins of old school players YEP.
Streaming platforms like Netflix, Disney Plus even ko Sports offer consumers the flexibility to watch their content on demand, but.
Be man, it comes at a lower cost than traditional pay TV subscriptions.
Foxdel generates an average of ninety bucks per month from its set top box customers.
Compare that to streaming services, which are less than a quarter of the price.
And as a result, streaming services typically have leaner profit margins compared to traditional PATV.
In fact, be Man, Foxell's, Ko and Binge and Foxel now makes up sixty six percent of their customer base but only twenty three percent of their revenue.
So Fox has struggled to balance its legacy PATV business with the growth of competitor streaming services.
And clearly NewsCorp wants to hand all this problem to the new owners by putting it up for sale.
For our second story, the parent company of clothing brands Millers, Katie's and Nonybe saw its share price dropped by more than forty percent last week as it struggles to stay afloat.
Jeez, some physical retailers getting hit hard at the moment be manned, so tell me more well.
Mosaic Brands is the parent company which specializes in women's budget clothing brands.
We're talking Nonybe, Katies, Millers, Rockman's, Rivers and four other brands as.
Well and Josey Wait. Although these brands may not be where you shop, they are a seriously large outfit.
We're talking four thousand staff in seven hundred stores across Australia.
But when COVID hit they had to shut their stores down and weren't really set up well for the whole online store fan.
They got whacked with one hundred and seventy million dollars lous in twenty twenty and haven't really been the same ever since.
So last week Mosaic Brands announced a trading halt.
Basically so could look at ways to restructure and refine. It's the company and James Boy.
It's fair to say that investors didn't take to this very well.
Who no, no no. In fact, Mosaic's share price dropped over forty three percent during the week when it wasn't in its trading hold.
But one of the biggest challenges for Mosaic Brands is that the majority of its brands actually compete against each other.
Oh no, no, no, So tell me they man, what is the key leading here?
Market cannibalization can be a huge issue for companies that own multiple brands targeting the same customer or the same audience, so.
Theyman on face value. Having multiple brands in the same industry kind of sounds like a pretty good strategy to dominate that market.
Yeah, but it can backfire too, because instead of attracting a wider audience, the brands end up competing against each other for the same customer, and.
This can lead to unnecessary competition within the broader company, and.
It can drive up costs for separate staff and advertising and logistics, and theybanned.
This was the same problem that West Farmers faced with Kmart and Target back in the day.
That's right, those two discount department stores essentially competed for the same kind of customer.
And then they realized that Target just couldn't compete with Kmart's cheap, cheap prices. It ended up dropping Target store numbers from almost three hundred to just over one twenty. For our third and final story, Life three sixty share prices hit an all time high as across the seventy million user bar. Wow.
Wait, Juzzi boy, you got to say that is a lot of helicopter parents. Tell me what is going on here?
Okay? So, Life three sixty is the family social networking app founded in two thousand and eight in San Francisco, but it's actually listed on the ASX.
It's a subscription based platform that basically lets family and friends track each other's location and.
They're driving speeds.
I know it's borderline creepy, but it's definitely proven to be very popular.
Yeah. In fact, Life three sixties just announced that it's hit seventy million users.
On its app and this new cent Life three sixty shares fly and I'm talking eighteen percent to an all time high.
They also up their revenue guidance and they're expecting to make three hundred and seventy eight million US dollars in annual revenue.
But josey boy, that's not all investors were excited about.
Oh no, no, no. Live three sixty also announced its other revenue, which includes this new ad business, grew twelve percent for the June quarter.
And it's planning to expand its AD business this year to unlock more revenue opportunity. So what is the key learning heat First it was ads, then it was subscriptions, and now it's subscriptions plus ads. Man, Remember when the famous phrase used to be, if you're not paying for the product, you are the product. I actually do remember that very well, jus boy, But.
It's not so true anymore, because now you can be paying for the product by a subscription and be the product through ads.
And you see, juzzy boy. Many businesses that start with an ad based revenue model have switched it up to a subscription based revenue model to expand their earning potential.
But now we're else seeing subscription based businesses expand their earning potential through ads.
Yeah, think Netflix with its new ad tier, and Disney's also going to introduce ads soon.
Our old customers might not be too jazzed about this. Investors are habitable. Man. Is there any worse feeling than seeing a subscription that you haven't used in months but you're paying for it?
Agonizing, genuinely painful stuff.
But even better when you cancel it and realize it you're saving money out. We've got that all covered for you in the Flux apps. Make sure you check it out in the budgeting feature today.
Thanks for listening, and we'll see you on Wednesday.