In today’s world of on-demand video content, subscription-based platforms like Netflix and Amazon Prime Video dominate the market. However, not everyone has the means or desires to shell out money each month for access to premium content.
This is where Tubi TV comes in, offering free access to a vast library of movies and TV shows via supported commercials. In this article, we will discuss what Tubi TV is, its history, how it makes money, its funding, revenue, and valuation.
We will also examine the platform’s content library and categories, access and registration options, international availability, and its content personalization engine. Tubi TV: Overview and History
Tubi TV is a free, ad-supported video streaming service that offers access to over 35,000 movies and TV shows.
The platform was founded in 2014 by adRise, a San Francisco based advertising startup. What sets Tubi TV apart from other streaming services is its approach to revenue generation.
Instead of subscription fees, Tubi TV relies on advertising revenue to support its business. The ads are interspersed between episodes or movies, allowing viewers to enjoy the content for free.
The company reports that the revenue share it offers to content partners is a significant incentive for many studios and networks to license their content to Tubi TV. Since its launch, Tubi TV has forged content partnerships with various studios, including Lionsgate, Paramount Pictures, and MGM.
These partnerships have helped to expand the platform’s library over the years. Further, Tubi TV relies on machine learning algorithms to recommend personalized content to viewers, increasing the likelihood of finding content that appeals to them.
The platform has also expanded its footprint globally, launching in Australia, Canada, Mexico, New Zealand, and the United States.
Revenue and Valuation
Given the lack of subscription fees, one may wonder how Tubi TV generates revenue. The ads shown to users, in between the viewing of movies and TV shows, are the primary source of income.
Advertisers can buy commercial packages, and the company’s ad sales team can track the effectiveness of each campaign. This digital ad-tracking technology increasingly contributes to the platform’s relevance to advertisers when compared to traditional TV advertising.
As per a report in Forbes, Tubi TV’s revenue exceeded $300 million, a milestone that piqued the interest of various large investors. Investors include Jump Capital, Cota Capital, Foundation Capital, and Metro-Goldwyn-Mayer.
In March 2020, Fox Corporation acquired Tubi TV for $440 million. Fox indicates that this acquisition would present an opportunity to offer consumers more options in the ad-funded streaming marketplace.
According to reports, the acquisition provides Fox with a massive ad-supported streaming platform, access to data capabilities, and direct relationships with consumers.
Content Library and Categories
At present, Tubi TV boasts of over 35,000 movies and TV shows across 40 categories. The categories include action, classics, romance, family, anime, horror, and critically-acclaimed movies, among others.
The platform’s library is updated every month, ensuring that fresh content is regularly added. On Tubi TV, users can find various genres, including independent movies and documentaries.
Access and Registration Options
Users can access Tubi TV via the website, mobile applications, or numerous streaming devices, including popular brands such as Roku, Amazon Fire TV, and Apple TV. Although not mandatory, registering for an account on the platform presents users with a range of benefits.
For instance, registered users can create their watchlist, allowing them to save their favorite shows and movies for easy viewing later.
International Availability
Tubi TV currently operates in the United States, Canada, Australia, Mexico, New Zealand, and Europe. As the company continues to grow, it aims to expand its footprint into other international markets.
Its growth in other regions depends on the availability of its content library, with a focus on licensing localized and region-specific content to cater to the complexities of different potential markets.
Content Personalization Engine
The content personalization engine is a critical part of the service offered by Tubi TV. It uses machine learning algorithms, which analyze the viewing patterns and preferences of users, to offer customized recommendations.
The company aims to streamline the process of deciding what to watch next. With personalized recommendations, the platform hopes to increase user engagement and retention.
Conclusion
In conclusion, Tubi TV provides its users with an on-demand video content streaming service that has a vast library of movies and TV shows. With a user-friendly interface, a personalized content recommendation algorithm, and a broad range of categories and genres, it offers viewers a unique streaming service experience.
By relying solely on advertising revenue and intelligent machine learning algorithms, Tubi TV provides viewers with a free streaming experience that is becoming increasingly popular. With a valuation now more than $440 million thanks to Fox Corporation’s acquisition, Tubi TV is a new force to reckon with in the streaming world.
Tubi TV Partnership and Content
One of the factors that led to Tubi TV’s success is its content library, which is a result of partnerships with various studios and networks. The platform’s library includes movies and TV shows from popular studios such as Lionsgate, MGM, and Paramount.
By partnering with these entities, Tubi TV provides its users with a diverse range of viewing options, including old favorites, recent releases, and critically acclaimed productions. To reach more viewers, Tubi has engaged in partnerships with advertisers.
For instance, the platform has partnered with Yahoo’s demand-side platform to provide advertisers with access to more than 20 million monthly active users. Additionally, Tubi has an advanced frequency management tool, which helps advertisers to maximize their campaigns and minimize ad weariness.
By drawing on these resources, Tubi TV has become more appealing to advertisers, especially those interested in reaching broad audiences. Another essential aspect of Tubi TV’s business model is revenue sharing.
As part of the licensing agreement, Tubi gives a share of the revenue it generates to content licensers. The actual amount of revenue that is shared depends on the licensing agreement.
Generally, revenue-sharing deals vary from one studio to another and depend on multiple factors, including the popularity of the content, the platform’s ad revenue, and other considerations. As far as competition in the AVOD (Advertising VOD) space goes, Tubi TV has to compete with several players, including services from Amazon and Walmart.
While competition is high, it offers a level playing field for companies to innovate and offer new products, leading to increased choices for consumers.
Tubi TV Acquisition by Fox Corporation
Tubi TV’s Fox Corporation acquisition marks a significant opportunity in the AVOD market. The deal was completed in May 2020, and since then, Tubi has become an independent subsidiary of Fox Corporation, providing numerous benefits to the streaming platform.
With the acquisition, Tubi has been able to expand its content library and viewership. By being under the Fox umbrella, Tubi has more financial resources, which allow it to broker more lucrative advertising deals and create more original content.
Since the acquisition, Tubi TV has seen intense growth and is expanding rapidly into new markets. The company has managed to increase its overall viewership in recent months, drawing in both new and returning users.
The additional resources resulting from the acquisition have allowed Tubi to expand its content selection, which now includes more Fox programming. This new programming includes original productions as Fox leans more into the streaming industry.
One of the significant benefits of the acquisition was that Tubi TV’s revenue exceeded the acquisition price. At present, Tubi TV is bringing in significant revenue buoyed by its ability to offer free access to high-quality content.
The growth in viewership and revenue means that Tubi TV can continue to venture into other spaces, such as hardware support and additional content partnerships. Furthermore, by being part of Fox Corporation, Tubi has access to an enormous library of content, including Fox’s extensive sports programming.
The new access to sports and other programming further increases the appeal of Tubi TV to various advertisers and viewers.
Conclusion
Tubi TV has established itself as one of the top players in the Ad-supported Video-on-Demand market. The platform’s success is mainly due to its partnerships with studios and networks, allowing it to offer a vast content library to its users.
With the recent acquisition by Fox Corporation, Tubi TV’s position in its industry is secure and has the potential to grow even more. Tubi TV’s combination of affordability and quality programming means that it offers users the best of both worlds.
Tubi TV’s success in the Ad-supported Video on Demand market is due to its vast library, partnerships with studios and networks, and unique revenue model. The platform’s acquisition by Fox Corporation has provided it with more financial resources, content selection, and an expanded audience base.
The revenue share scheme, content personalization engine, and advertiser partnerships bolster the platform’s relevance in the AVOD space. The importance of Tubi TV cannot be overstated as it offers a free and more accessible streaming option to people who seek quality content without subscription fees.
Overall, Tubi TV is proving to be a major disruptor in the streaming market.