Based on the newest analysis from UBS, Tubi is expected to make $700 million in revenue in 2022. Analysts also predict that by 2023, Tubi will hit $1 billion in revenue. Thanks to Fox’s strategy, the free ad-supported streaming service is up from its annual revenue of $145 million when it was first purchased.
In their Q1 earnings call, Fox reported that the total view time on Tubi is up 30% growth compared to last year when Tubi attained 220 million hours of views back in September. Since then, Fox has continued to be focused on supercharging this growth.
Tubi CEO Farhad Massoudi believes that the reason why it has grown so quickly since it was acquired by Fox last year is that the company is no longer distracted by a streaming business that is a financial burden. Fox Corp. chairman and CEO Lachlan Murdoch have previously stated that Fox dreams of Tubi becoming “a $1 billion business and a core pillar of Fox.” These dreams may come true earlier than anyone ever expected.
Fox Corp. chief financial officer Steven Tomsic admitted to investors at UBS that Tubi “probably leads” Fox’s digital assets, claiming that Tubi’s business provides gradational revenue to the corporation’s broader advertising portfolio, not solely a supplement to linear TV ad declines. Tomsic said, “Tubi runs its own rate internally in the business… Tubi is sold very specifically as its own asset, and it’s also a different demo from the broader portfolio.”
Massoudi shares that Tubi plans to invest more in the content to expand its library. The service has over 35,000 titles, up from 20,000 when it was acquired. It has 40 million monthly active users, which is largely due to its range of content and ability to personalize recommendations to very niche audiences. He added, “We have chosen not to go after the broadcast type of content that is meant to appeal to the average customer… We try to serve smaller communities … and our ability to personalize is so key to our business.”
Currently, Hulu and Paramount+ lead the AVOD pack with $1 billion and $822 million per year in ad revenue, and those subscriptions still cost money. For Tubi to pull this off as a FAST service would be impressive.
In October, Tubi debuted its original series, “The Freak Brothers,” an animated show starring Woody Harrelson, John Goodman, and Tiffany Haddish. This library expansion strategy also includes the Spring 2022 release of Tubi original “Corrective Measures,” a sci-fi action film starring Bruce Willis, Michael Rooker, and an ensemble cast. In total, there will be more than 140 hours of new content for viewers to watch this upcoming year.
Tubi is a free video streaming service that includes on-demand access to 45,000+ movies and television shows - more than any other streaming service. Fox executives have called their service “TV on steroids.”
Tubi’s programming includes films and television series from Fox Entertainment, MGM, Paramount Pictures, Lionsgate, Sony Pictures, Warner Bros., NBCUniversal, Disney, and more.