Happy Friday, Flux fam!

Just a quick note to say...what a year! We've been through the big news stories (remember when Square acquired Afterpay?!) and the scary news stories (umm...AdBlue...).

This is our final Flux daily newsletter for 2021. We'll take a short break (we just can't stay away from you) and return on Monday the 17th of Jan 2022. Happy holidays!

Now, here's everything you need to know today - in under 3 minutes.

Today's big stories:

💊Health insurance premiums have their slowest rise in 20 years

🔄TikTok twin Triller reverse merges onto the stock exchange

🎬Disney+ gets a reality check

Oh and get this...

Are you loving the Flux newsletter? Well...we've got news for you. You can be part of it! We're on the hunt for a Content and Community Lead to join our team. It'll be fun - we swear 🥳

Health insurers get the Christmas spirit, with premiums copping their slowest rise in 20 years

Background: We know private health insurance isn't free. Customers pay a 'premium' (aka just a fancy word for the money they pay for their policy). And every year on April 1, these insurance premiums increase.

What happened: In 2016, health insurance premiums increased by 5.59%. But in 2022? They're only increasing by 2.7% - the slowest premium rise in 20 years.

What else: But it ain't 'cos they've caught the Christmas spirit...it's all because of insurance payouts, which were incredibly low last year - TY COVID.

So what's the key learning?

💡When risky behaviour goes up...insurer's performance goes down. And when risky behaviour goes down...insurers are laughing. COVID was tough for Aussies, but for private health insurers it was a different story.

💡There were lockdowns, restrictions to elective surgery, limits on in-person consultations with medical professionals...which meant health funds didn't really need to make that many payments to their customers.

💡In fact, the ACCC told health funds they better watch out (look twice, etc) and calculate the true value of profits from COVID shutdowns...and then pass those profits back to members. And that's just what some of them are doing by keeping premiums low.

TikTok's older twin (by 1 min) Triller slaps the UNO Reverse card on mergers and goes public

Background: Triller were founded back in 2015 in Los Angeles - a year before TikTok launched. And like TikTok, they're all about the short-form videos set to music.

What happened: The Triller app has been downloaded more than 250 million times, and has users like Justin Bieber, Post Malone, Kevin Hart.

What else: Now, Triller are going public via a reverse merger. The new entity will be called TrillerVerz Corp - and will be valued at around US$5 billion.

So what's the key learning?

💡A reverse merger is when a private company becomes a public company by taking a controlling stake in the public company. It's called a 'reverse' merger because usually a public company is the one to absorb the private company.

💡There a pros:

• Companies can go public in as little as 30 days
  
• The process is less costly
• The 'IPO' is less likely to be cancelled or put on hold due to market conditions or adverse media attention

💡But there are also cons:

• Some reverse mergers can come with unforeseen circumstances, like liability lawsuits
• Many execs in private companies don't have experience running a public company.

Hopefully...Triller and SeaChange work it out.

Ex Disney CEO Bob Iger steals Britney Spears' line and says 'Gimme More' to Disney+

Background: Disney+ have some lofty goals for platform growth. They want to have 260 million subscribers by 2024. Right now, they're on 118 million.

What happened: Former CEO Bob Iger - who left Disney+ in 2020 - hit Disney+ with some truth bombs. He reckons the company needs more volume, meaning, content...for more people...across more demographics.

What else: So...we think he's talking about content diversification.

So what's the key learning?

💡When it comes to content, there are a few things companies need to consider: originality, exclusivity and diversification. But it's really that third one that's key.

💡Diversifying content can help companies reach new target markets, which ultimately helps them generate more revenue. So far, Disney+ has clung to its old faithfuls: Marvel, Star Wars, and family-friendly films.

💡This means for people who haven't already subscribed to Disney+...there really isn't any incentive to do so. But if they diversify their content...they may be able to give new audiences an incentive to subscribe.