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 overachieverInitially 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 problemTubi’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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