Tubi’s Revenue Model: How Does It Make Money?

Ever wondered how a free streaming service can thrive in a world dominated by subscription-based giants? Tubi TV, the ad-supported streaming service, has figured out how to be profitable and not charge its users a dime. But how exactly does this Tubi business model work?

Founded in 2014, Tubi has grown into a streaming powerhouse. It has over 74 million monthly active users as of June 2023. With a library of over 20,000 TV shows and movies, Tubi has carved out a niche in the competitive streaming space.

The secret sauce behind Tubi’s success is its innovative tubi revenue streams. Unlike traditional subscription-based services, Tubi relies on a combination of advertising, sponsored content and data monetization to fill its coffers.

In a bold move that solidified its position in the market, Fox Corporation acquired Tubi for $440 million in 2020. This gave Tubi more resources and opened up new tubi monetization strategies.

As we dig into Tubi’s free streaming platform model, we’ll explore the ways this company has turned ‘free’ into a profit. From its unique advertising approach to its content partnerships, Tubi’s journey is a case study in innovation.

Key Points

• Tubi TV has 74 million monthly active users
• The platform has over 20,000 TV shows and movies
• Fox Corporation acquired Tubi for $440 million in 2020
• Tubi’s revenue model is ad-supported
• 4-6 minutes of ads per hour of content
• Tubi generates revenue through advertising, sponsored content and data monetization
• Available in multiple countries with plans to expand

What is Tubi: The Free Streaming Giant

Tubi is becoming a big name in streaming. It has 50,000+ titles for free. That’s almost 8x more than Netflix’s US collection. It appeals to a wide range of viewers, with a median age of 39.

Tubi’s user base is growing fast. By 2023 it had 64 million monthly active users. It also has a diverse audience, 46% of users are Black in June. That’s much higher than the 14% of the US population.Tubi’s numbers are clear. Its revenue jumped from $775 million in 2022 to $900 million in 2023. In May 2024 it hit a record beating many major streamers. To keep this up Tubi is making its own shows. These include a reality show by Gordon Ramsay and a horror-themed animated series.

Ad-Supported Streaming Model

Tubi TV uses an ad-supported model that works for everyone. No subscription fees so users get access to a lot of movies and shows for free. They see 4-6 minutes of ads per hour of content, much less than cable TV.

This model is a hit with viewers. 65% of cord cutters prefer services like Tubi that are free or low-cost. The platform now has 78 million monthly users, 1.5% of all TV and streaming in the US. Its audience is also diverse, 42% multicultural, more than cable TV.

Advertisers win with Tubi too. The platform offers different ad types, video ads and interactive billboards. 98%+ of Tubi’s ads are seen by viewers, according to MOAT. One CPG brand saw 41% increase in ad awareness and 47% increase in purchase intent from using Tubi ads. With ads at least $20 CPM, Tubi’s strategy is good for both the platform and its advertisers.

How Does Tubi Make Money?

Tubi makes money in different ways. It’s a free streaming service with over 70 million users every month. The platform uses ads to make money. It shows ads before and during videos.

This way Tubi keeps its service free for everyone. And it makes a lot of money.

Tubi also works with brands to create special content. That’s part of its business model. It also licenses content from studios and distributors.

This helps Tubi offer a wide range of shows and movies. Data from Tubi’s users is another big part of its income. The platform uses this data to help advertisers reach their audience better.

Tubi’s ads cost between $7-9 CPM. Knowing who watches what helps Tubi improve its content and ads.

Tubi’s Content Strategy and Partnerships

Tubi focuses on having a huge and varied tubi content library. It has over 50,000 movies and TV shows. This variety comes from deals with big names like Lionsgate, MGM, and more.

These partnerships allow Tubi to offer hits in many genres. This keeps its 74 million monthly users engaged.

Tubi also produces its own tubi originals. These exclusive movies and shows bring something new to the platform. By making original content, Tubi tries to attract new viewers and keep the ones it has.

In February 2023 Tubi was the most-watched Free Ad-supported Television service in the U.S. It accounts for 1% of total TV consumption.

Tubi works with big names like VideoAmp and Comscore to improve its ads. These partnerships help Tubi offer better targeting and insights to advertisers. This benefits content creators and marketers alike.

As Tubi grows its library and strengthens its partnerships it becomes a top name in free streaming.

Technology and User Experience

Tubi leads in streaming with its advanced technology. It uses smart algorithms to suggest shows and movies based on what you watch. This ensures you see content that’s relevant to your interests and improves your viewing experience.

The platform has over 40,000 titles, that’s a lot of options. Its easy to use interface works on all devices. You can watch on smartphones, tablets, smart TVs and gaming consoles without a hitch.

Tubi’s focus on family content is clear in its Tubi Kids section. It offers safe shows and movies for kids. Parents can be sure their kids are watching age-appropriate content without worrying about mature themes.

Tubi’s free service is ad-supported but the ads don’t disrupt your watching. The ads are placed carefully to be relevant and not annoying. This approach has helped Tubi grow to 33 million active users by 2022. For those wanting to improve their online presence, effective blogging tips can help you create engaging content and attract a loyal audience.

Tubi’s Advertising Platform

Tubi’s ad platform is a big deal in streaming. It has 74 million users every month. That’s a lot of eyes on ads for businesses.

Ads come in different forms. You’ll see pre-roll ads that are 15-30 seconds long. Mid-roll ads pop up during breaks in shows. And, there are banner ads on the site and app as you scroll.The audience for Tubi is multicultural. It has more males than females which is good for advertisers. They can target their ads to specific groups. Tubi’s tech helps brands find the right viewers.

Ad benefits for Tubi are many. It’s free so lots of people watch and make money from ads. Ads are tailored to what viewers like. In 2023 Tubi saw a huge jump in viewing hours, 8.5 billion.

Tubi keeps improving its ads. It’s always looking for new partnerships to grow ad revenue. With more people choosing free, ad-supported streaming, Tubi is set for more success.

Data Monetization and User Insights

Tubi’s success comes from using data analytics wisely. It has 80 million users every month. This gives Tubi a lot of information about what people like to watch.

The company uses this data to help advertisers and content creators. It turns user insights into a powerful tool for them.

Tubi balances using data with keeping user privacy safe. It makes user data anonymous and combines it. This way individual viewers stay private but useful trends are shared.

Advertisers can then make ads that really speak to their audience. This makes their ads more effective and profitable.

Tubi’s smart use of data has paid off. It’s now the second most watched streaming service, beating Disney Plus and HBO Max. It has over 250,000 movies and TV shows, that attract a wide range of viewers.

This big user base gives Tubi lots of data. It helps the platform grow and attract more advertisers.

As Tubi grows its focus on data and user insights will be key. It’s good at sharing valuable data while keeping user privacy safe. This puts it in a strong position in the streaming market.

Tubi’s Growth and Future Prospects

Tubi has grown a lot in the last few years. It’s become a big player in the streaming world. In 2022 it hit over 64 million monthly active users. It also saw a 44% increase in total viewing time from the previous year.

Its user base is diverse with big growth in African American and LGBT audiences.

Tubi wants to offer more content and make it easier to access. It has over 50,000 titles from 455 partners. This variety meets many viewer needs.

The company plans to make 100 original titles in different genres. This will help Tubi stand out in the competition. Tubi is in good shape. Ad-supported streaming is on the rise and three out of four people consider AVODs a good cable alternative. Tubi is ready to take more of that market.

It’s all about ease of use – no account required – and Tubi stands out in a crowded streaming space.

Conclusion

Tubi TV is a big player in streaming thanks to its ad-supported model. 74 million users a month as of June 2023. 3.6 billion hours of content watched in 2021.

Fox Corporation took notice and bought Tubi for $440 million in 2020. A year later, Tubi’s revenue was more than that.

How Tubi makes money is interesting. Free content with ads – free and profitable. 35,000+ movies and TV shows thanks to 125 partners.

Looking ahead, Tubi TV is growing strong. 160 million hours of content watched monthly. Smart ads and data ready for the future.

As streaming evolves, Tubi TV’s ability to adapt and offer free, quality content is key. That’s what will keep it unique and attract more users.