*Tubi, the ad-supported streaming platform owned by Fox Corp., has become profitable this year while building a large audience that tolerates commercials. The service now stands as a serious competitor to major subscription-based platforms. Its growth reflects shifting viewer preferences away from paid services.
Tubi accounted for 2.1% of all streaming minutes viewed in the United States last month, per Nielsen’s The Gauge report. This share positioned the platform ahead of NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max. Only YouTube ranked higher among non-subscription options, per CNBC.
“Our fans come in, and they behave like [subscription streaming] viewers. The only difference is they don’t pay for it,” Tubi’s chief marketing officer Nicole Parlapiano explained.
The platform serves more than 100 million monthly active users. It also streams 1 billion hours of content each month. Tubi’s audience skews younger, with nearly 60% identifying as millennials or Gen Z, and almost half described as multicultural.
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“People used to cut the cord, now they’re canceling subscriptions. And is that driving more consumption into free streaming? Absolutely,” stated Tubi Chief Content Officer Adam Lewinson.
The service offers more than 300,000 titles via licensing deals and creates some original programming. It additionally carries select Fox sports events, such as February’s Super Bowl and a Thanksgiving NFL game.
Fox purchased Tubi for $440 million in 2020 following the sale of certain assets to Disney. The acquisition has paid off, with Fox shares rising over 40% this year amid difficulties for rivals. Tubi delivered 27% revenue growth in the quarter that ended September 30 and reached profitability “earlier than expected,” according to Fox CEO Lachlan Murdoch.
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