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The Future. Tubi, a free streaming service acquired by Fox Corporation in 2020, has recently surged into the spotlight, beating well-known competitors like Peacock and Paramount+ in total viewing time, according to Nielsen. As more consumers grapple with subscription fatigue, platforms offering diverse content without a paywall may become increasingly popular, potentially leading to a new wave of ad-supported, free-to-use services.
From underdog to overachiever
Initially met with skepticism due to its free model, Tubi is now capitalizing on its eclectic library of older content and low-budget productions.
- It generated $900 million in revenue over the last year compared to $775 million from the year before.
- Its audience, which skews older (a little more than half is over the age of 50) and includes a considerable number of Black viewers (46% as of June), tune in for “random old things that they wouldn’t have normally thought to watch,” says Tim Nollan, an analyst at Macquarie, in The NYT.
- Despite not yet being profitable, Tubi’s ad-supported model is gaining traction as consumers become weary of rising subscription costs across the streaming industry.
No cash, no problem
Tubi’s unexpected rise illustrates how embracing perceived weaknesses — older titles, lack of stars, and lower-budget productions — can be a strategic advantage in a crowded marketplace, reshaping the landscape of the streaming business.
Oh, and people love free.
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