Tubi, the free streaming service owned by Fox Corp., has achieved profitability for the first time, attributed to its strategy of attracting younger viewers who prefer ad-supported content. In November, Tubi accounted for 2.1% of total streaming minutes, surpassing competitors such as NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max. Tubi’s Chief Marketing Officer, Nicole Parlapiano, noted that its users engage with the platform similarly to subscription viewers, despite it being free.
The influx of costs associated with traditional subscription services has driven consumers toward ad-supported platforms. Tubi’s Chief Content Officer, Adam Lewinson, emphasized this shift, stating that many users are abandoning expensive subscriptions in favor of free alternatives. With over 100 million monthly active users and 1 billion hours streamed each month, Tubi has become a notable player in the streaming landscape.
Fox reported a 27% revenue increase for Tubi in the recent fiscal quarter, driven by an 18% rise in total viewing time. The platform’s growth reflects Fox’s strategic pivot in the streaming space following its sale of entertainment assets to Disney in 2019. Tubi also caters to younger audiences, with nearly 60% of its viewership coming from millennials and Gen Z, highlighting its appeal among demographics that value cost-effective entertainment options.
Additionally, Tubi has launched initiatives to engage content creators, enhancing its original programming and attracting new viewers. The platform emphasizes a varied library, featuring over 300,000 titles, including niche and popular films, appealing specifically to a younger audience’s interests.
Why this story matters:
- Tubi’s profitability indicates a successful shift towards ad-supported streaming amid rising subscription costs.
Key takeaway:
- Tubi highlights a growing consumer preference for free streaming services, especially among younger viewers.
Opposing viewpoint:
- Some critics argue that the ad-supported model may not provide a satisfactory viewing experience compared to ad-free subscription services.
