Tubi TV is a well-known free video streaming service competing with other major industry giants offering some great content. With no monthly subscription and no credit cards, Tubi TV is free.
The only catch is having to sit through commercials. These commercials are the only way through which the company generates its revenue.
Tubi was launched in 2014 by Thomas Ahn Hicks and Farhad Massoudi. It has its headquarters in San Francisco. It offers its services in both Australia and Canada.
Tubi got a major boost in 2020 when Fox acquired it for $440 million. Tubi TV had around 25 million monthly active users during the time of the acquisition process. Source
Current Business Model
How Tubi Makes Profit
Tubi is an entirely ad-supported video streaming service. It generates revenue and profit by displaying ads.
Nexttv reported that streams initiated on advertising-based video on demand platforms were up around 148% during the first week of April 2020.
The report stated that Tubi controls the largest market share, with 25.16%. Sony’s Crackle came in second place, with 12.04 % of the total AVOD market share.
Check this out:
Tubi announced that it had signed an exclusive ad sales partnership deal with Foxtel Group, a popular Australian media company. The company is now trying to obtain more such deals.
In 2019, Tubi witnessed a massive success in its performance by drawing more viewers to the platform. The company’s monthly user base went up to 25 million (six months before that, it was around 20 million).
Why Tubi Rules the Online Streaming Services
The total viewing time crossed over the 163 million hours mark. That meant, most of the Tubi users watched around 6.5 hours of video on average that month alone. Source
According to Tubi’s 2020’s statistical data in June, the platform got 681,000 visits worldwide. As per the data, it received most of the site visits from the United Kingdom. UK’s visits translated to 29.15% of the total views.
In terms of audience, a statistical report proved that 15% of Gen Z watched the Tubi streaming service in the last 12 months. That study was conducted in April 2020.
In the case of Gen X, Baby Boomer, Millennials, and Silent Generation, it was 9%, 5%, 7%, and 1%, respectively.
How Tubi Challenges for Hulu and Netflix
Tubi TV has more than 20,000 movies as well as popular TV shows. That fact is surprisingly significant for a streaming service that has not received mainstream status.
It has managed to gather a lot of content by signing deals with 250+ content providers, such as MGM, Lionsgate, Paramount, etc. You can also find programs from Complex Networks, A&E, as well as other well-known studios.
You can also watch movies acted by popular actors. Some famous movie titles on Tubi TV are Teen Wolf, the Boondock Saints, Major League, Memento The Aviator,etc.
Shows to Watch Out for in Tubi TV
Tubi TV lets you access A&E, which offers many reality TV series. It has series from the 1980s as well as the 90s. You can watch Alf, Storage Wars, Hell’s Kitchen, Ducky Dynasty, and The Apprentice.
Tubi added 30 seasons of The Joy of Painting, which includes more than 400 episodes on 1st July 2020. It is entirely cost-free.
This strategy has witnessed tremendous popularity among users. Today, the online streaming industry is crowded with paid streaming services.
However, Tubi TV is continuously expanding its content library. It does that by adding a vast range of Emmy-winning TV shows and Oscar-winning movies.
These movies cover 40+ categories from classics, family, children, drama, comedy, horror, anime, Korean dramas, and British TV.
Tubi’s current competitors are Crackle and Hulu. Both Crackle and Hulu put up stiff competition for Tubi TV in the global video streaming industry.
Crackle TV is an on-demand streaming TV service controlled by Sony and CSS- Chicken Soup for the Soul. Crackle offers more than 700 movies and more than 100 TV series.
Its movie library is the primary factor that attracts many users to use the platform. You can find many popular titles on Tubi TV because it displays shows starring top Hollywood actors and actresses.
Tubi TV also offers some original shows and movies that you may not find on FX, Netflix, or AMC. The platform updates monthly and lets the users witness some new TV shows and movies, refreshing its lineup.
Like other AVOD platforms, Crackle won’t cost you a single penny. You can stream it on different devices. However, you will have to deal with video ads that can come up before and in the middle of the content.
Hulu is also a popular video streaming platform. It is most popular in the United States and Japan. It is a subscription video-on-demand service, and with Walt Disney as the primary stakeholder.
The company has a strong partner-base – The Walt Disney Company and The CW. Besides, it also has partnered with the BBC.
In 2018, Hulu Tv entered into a partnership deal with Spotify to let the users purchase streaming services. As of August 2019, Hulu has 28 million paid subscribers.
The best thing about Hulu is that it offers customized add-ons. These add-ons cover Starz, HBO, Showtime, and Cinemax.
Tubi’s Competitive Advantages
While both Hulu and Netflix required their viewers to choose a monthly subscription, Tubi TV, on the other hand, is entirely free. Both Netflix and Hulu are increasing their monthly subscriptions.
Tubi is also taking some unique initiative to attract more customers. Tubi partnered with pCare to make the streaming services available to patients who are admitted for COVID-19. What a fantastic way to help in managing isolation and stress.
Tubi TV – A Cross-Platform App
Tubi TV is also accessible through Mac OS and Windows. It also has dedicated Android, iOS, Amazon Fire TV, Apple TV, Roku OS, Xbox One, and PlayStation 4. Even though there are ads, the content will surely keep the users engaged.
The popularity of Tubi TV is growing at a high rate. Its 25 million active users in December 2019 is a solid proof of that. The company is also doing well outside of the United States and witnessed tremendous growth in 2019.
For example, from Australia and Canada, it got a 357% increased view time.
In 2019, Tubi invested more than $100 million in licensing content to offer better free streaming services.
Tubi announced that it had launched its free video streaming services in Mexico on 22nd January 2020. Its users could then watch the free on-demand movies and Tv shows.
Tubi’s Multi-Platform App Plan
These streaming apps will be available on Hisense TVs with VIDDA Smart OS. It’ll also have the apps on mobile devices covering both Android and iOS, the web, and other supported devices.
Tubi will feature some well-known collections and genres, such as Family Entertainment and Hollywood Favorites. There will be The Best Of TV Aztec, including Lo Que La Gente Cuente, MasterChef, Exatlon Mexico, and Bellezas Indomables.
It has also announced that it will launch new advertisement solutions by partnering with major DSPs (Demand Side Platforms). They will also add more content to its premium content library.
Tubi launched the top cooking show for 2019 – 2020, Gordon Ramsay’s 24 Hours to Hell and Back on 1st July 2020. You can stream this show for free.
Furthermore, Tubi is also entering into kids and family programming to accelerate the world’s co-viewing trends.
Tubi now has more than 12,000 movies and TV series, and around 40,000 hours of unparalleled content. Additionally, it has more than 200 popular content partners who are regularly contributing to this platform.
Tubi’s Silver Bullet
Tubi should continue to license new shows and seek out new audiences. By doing so, it will continue to remain the dominant-free TV streaming service in the industry.