Profitable Growth at Tubi
Tubi has achieved profitability this year by attracting younger audiences who are open to watching ads, an approach many other streaming platforms are struggling with. The Fox Corp.-owned free streaming service has gained popularity, finding its place among major competitors like Peacock and HBO Max, as it competes with budget-friendly services such as Pluto and The Roku Channel.
Rising Viewership
In November, Tubi accounted for 2.1% of total streaming minutes, surpassing NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max. Nicole Parlapiano, Tubi’s chief marketing officer, noted that users engage with the platform similarly to subscription services, differing only in not having to pay for it.
Market Dynamics
With Netflix’s market dominance prompting other companies to invest heavily in original content and push subscription prices higher, many consumers are shifting towards ad-supported options. Adam Lewinson, Tubi’s Chief Content Officer, observed that the trend of canceling subscriptions has shifted viewers to free streaming services.
Impressive User Metrics
Tubi boasts over 100 million monthly users and streams about 1 billion hours of content monthly. By comparison, Netflix reported over 300 million subscribers at its last metric update, while Disney+ had 131 million subscribers by the end of September. Nearly 60% of Tubi’s audience comprises millennials and Gen Z, with a diverse demographic representation.
Original Content and Partnerships
Tubi expands its content library through licensing various films and TV shows, presenting both popular and niche selections. While they produce original content, it is on a smaller scale than competitors. Tubi’s partnership with Fox has also enhanced its offerings, including airing NFL games and the Super Bowl.
Strategic Focus on Younger Generations
Tubi is actively targeting younger viewers, having launched initiatives like Tubi for Creators to integrate content creators into their platform. The effort has seen success, with the platform significantly increasing its library by collaborating with popular YouTube personalities and independent filmmakers, resulting in a retention rate among younger viewers that surpasses general benchmarks.
Advertising Appeal
Tubi maintains a strong stance as an ad-supported platform, positioning itself differently from its competitors who also offer ad tiers but don’t entirely focus on ad-supported models. Their comprehensive viewing experience, combined with a growing millennial and Gen Z audience, reinforces Tubi’s appeal to advertisers, driving significant advertising revenue growth for Fox.
