Tubi TV Business Model and SWOT Analysis: How Does Tubi TV Make Money? - MyBizAnalyst (2022)

Tubi TV Business Model and SWOT Analysis: How Does Tubi TV Make Money? - MyBizAnalyst (1)

Overview

Tubi TV is a streaming platform situated in the United States that is operated by the Fox Corporation. It relies on advertising to fund its platform’s extravagant content.

The company made its debut on April 1, 2014, and has been around since. The company’s main headquarters are in San Francisco, where it was founded. More than 33 million people were using the company on a monthly basis as of the beginning of 2021.

Until 2022, Tubi was a stand-alone streaming service that launched in 2014. It was Fox Corporation that took over as the business’s parent company in 2022. It now has 51 million monthly visitors.

Company Profile

Company NameTubi TV
Websitehttps://tubitv.com/
Founded2014
FoundersFarhad Massoudi and Thomas Ahn Hicks
Key PeopleFarhad Massoudi – Founder & CEO, Michael Ahiakpor – Chief Product Officer, Marios Assiotis Chief Technology Officer, Reza Banki – CFO, Sarah Ekstrom – Chief People Officer, Natalie Bastian – SVP of Marketing, Adam Lewinson – Chief Content Officer, Mark Rotblat – Chief Revenue Officer.
HeadquarterSan Francisco, U.S.
Company Revenue$380 million (2021)
Key CompetitorsPluto TV, Hulu, Xumo, Graphic India, Asahi Broadcasting Group Holdings, and MobiTV

What is Tubi TV? A Brief History

As an OTT streaming network, Tubi TV allows users to view on-demand video content like movies or television shows.

Users are not required to pay a monthly membership fee in order to access the material. The company is financed through the sale of advertisements.

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With more than 35,000 films and TV series across 250 content partners, the company claims to have one of the biggest catalogs.

As a free service, it was established by Thomas Ahn Hicks and Farhad Massoudi of AdRise in San Francisco.

To now, Tubi TV has only been available to adRise customers. There were 125 content providers on the network when it was established, and 20,000 licensed TVs were included.

How Does Tubi TV Work and What Does it Offer?

So how exactly does Tubi TV work?

Tubi TV did not produce any of its own original programs until 2021 created the “Original” feature. When it comes to licensed content, this service provider works with companies like MGM, Lionsgate, and Paramount to show their movies and TV shows to users.

No registration is required in order to view Tubi TV content. As a result, the viewing experience is remarkably identical to that of traditional cable tv.

This streaming network may be viewed through the network’s website, mobile applications (Both iOS and Android devices), or even other streaming systems such as Google Chromecast, Amazon FireTV, or Roku.

In order to see the contents, you must reside in one of these countries: the USA, New Zealand, Australia, Mexico, or Canada.

What does Tubi TV offer to its consumers?

Tubi TV Business Model and SWOT Analysis: How Does Tubi TV Make Money? - MyBizAnalyst (2)
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More than 40 different types of entertainment are available to users, covering drama, action, romance, horror, and more.

In addition to performing several additional functions not available to ordinary Tubi TV accounts, users who sign up for an Activate account in the free Tubi TV may build a queue of movies to watch and suggested material to stream.

In addition, users may also resume viewing the video at their own pace at the place that they left off.

Tubi TV Business Model

As a Netflix replacement, Tubi TV operates as a free service. Therefore, the company’s revenue strategy is based on advertising.

Due to the company’s programming being ad-supported, you may expect to see advertisements both before and during the material you choose to view on the service. Despite the fact that some individuals are certain to be offended, others will choose it over a monthly subscription fee.

Tubi TV is ad-free and does not need a subscription. A free trial does not exist prior to the commencement of a paid membership. You will never be prompted to enter your bank account or credit card number when using the streaming website.

It is possible to view a wide variety of television programs and videos on Tubi TV for no charge at all. It features a wide variety of books and genres to choose from. There are no ads on the site, which means it is ad-free.

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Tubi TV Unique Selling Propositions

Tubi is a video broadcast provider, similar to Hulu, Netflix, and other well-known options, where you can watch free episodes and films on your smart TV, phone, or other compatible devices.

Tubi really doesn’t need you to sign up for a membership, yet there are several features that its customers can enjoy.

First and foremost, the website does not need a membership to view all of its material. Despite the fact that it is supported by ads, people may still tolerate it since it provides free access to high-quality entertainment material.

Nonetheless, it has material not seen on alternative streaming services or media. It provides all of this for no cost, and the collection is extensive as well.

The “Original” feature was introduced in 2021 by Tubi TV, allowing users to view original content created and supervised by the Tubi crew. These are just a handful of the Tubi Originals that we’ve put together such as Juliet Killers, Unborn, Romeo.. etc.

How Does Tubi TV Make Money?

Tubi TV generates revenue from advertising. Advertisements appear as the video switches from one part to the next or while the video is playing.

About 4 to 6 minutes of advertisement are included in every hour of video material, as a general guide.

The ad loading is consequently reduced dramatically when compared to conventional (linear) tv. Every 60 minutes of linear television is usually punctuated by at least ten minutes of advertisement.

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The company gets income every time a user is exposed to an advertisement. Thereafter, the material licensing company, like MGM or Lionsgate, receives a portion of the revenue.

The exact income split is determined by the deal made by Tubi TV and the company from whom the content was licensed. As a point of perspective, YouTube content creators earn 55% of all money, with the leftover 45% going to the YouTube platform.

Marketing on the streaming network (as opposed to conventional linear television) provides advertisers with more trackability than conventional linear television, allowing them to track their financial returns. If you decide to create an account with Tubi, you’ll see this in particular.

With the intention of luring in new clients, Fox had previously declared that it would provide its sponsors with very profitable advertisement bundles (by combining them with Fox’s TV schedule).

Moreover, the company has made considerable expenditures to strengthen its marketing technology, like the creation of a new sophisticated frequent management solution for sponsors. Advertisers may use the feature to prevent displaying the same advertising many times on their websites.

Tubi TV SWOT Analysis

Tubi TV examines its strengths, weaknesses, opportunities, and threats by doing a SWOT analysis of the present market.

In addition to being a top-tier streaming service, it offers other advantages. This is an opportunity for the corporation to counter market risks and maintain its development.

Strengths

  • Users granting free access to Tubi TV to watch more than 20,000 movies in their library size rather than paying monthly to Netflix or Hulu.
  • Users do not need to create an account to watch streaming movies
  • Tubi adapts to different technology by offering streaming on a wide range of internet-connected devices at free costs such as IOS, Androids, Google Chromecast, Apple TV, PlayStation, and many more. Due to this, their business grew immensely over the years.
  • The user interface is convenient to use and has a simple design.
  • The company has active users of 33 million increasing by 65% in 2020.

Weaknesses

  • Tubi TV is no longer accessible in Europe as a result of new EU regulations.
  • Users have to watch several ads while watching their favorite movies.
  • Movie contents in the library are not up-to-date.
  • No unique material is produced by Tubi’s team. As an alternative, the company increases its reliance on Paramount, MGM, and Lionsgate which have contributed hundreds of hours of programming.

Opportunities

  • The business is going to be the most suitable alternative streaming service to Netflix and Disney Plus.
  • Users can access streaming services with the following devices such as PlayStation, browsers, smart TVs, etc.
  • The business may consider decreasing the duration of their ad or generating premium features to allow users to skip ads.
  • Expanding the number of contracts with different movie distributors will allow it to develop its content licensing business. Additionally, Tubi should refresh its content library to be up-to-date.
  • Currently, Tubi is only accessible to users in the United States, Mexico, Canada, Australia, and New Zealand. Tubi can seek more opportunities to expand its market to other potential regions to target more market segmentation.

Threats

  • Because the ads are always interrupting users from watching smoothly, this can affect the user’s experiences.
  • Streaming quality is still low, and it only features 720p HD, resulting in a not very-clear clean video watching experience like 1080p HD.
  • Advertising is unskippable and it generally lasts from 15 to 30 seconds, so this makes users feel annoyed.

FAQs

How does my movie make money on Tubi? ›

Tubi TV is a streaming platform that serves on-demand video content free of charge. Users can access over 35,000 movies and TV shows. Tubi TV makes money by showing commercials within the video content or when switching between them. It thus relies on an advertising business model.

How much money has Tubi made? ›

According to a research note from MoffettNathanson, Tubi brought in approximately $150 million in advertising revenue in 2020. The analyst firm predicts that figure will grow to $380 million in 2021, $650 million in 2022 and $1 billion in 2023.

What is Tubi revenue? ›

Published by Statista Research Department, May 31, 2022. In 2020, Tubi generated an advertising revenue of approximately 150 million U.S. dollars.

Did Tubi go out of business? ›

In April 2020, Fox Corporation acquired Tubi for $440 million; Farhad Massoudi would remain at the company, which would continue as a separate subsidiary. In December 2021, Fox acquired MarVista Entertainment, in a move to bolster Tubi's library and leverage its production capabilities for made-for-TV movies.

How do short films make money? ›

Yes, you can earn cash from your short films, and below I'll tell you how!
  1. Local Brand or Sponsor. Don't be afraid to reach out to local stores and brands to see if they're interested in sponsoring your film. ...
  2. Crowdfunding. ...
  3. Sell or License to a Streaming Platform. ...
  4. Upload and Monetize. ...
  5. Contests that Offer Cash Prizes.
5 Aug 2021

How much does it cost to put a movie on Tubi? ›

Truly, it's nothing: you won't hit a paywall at any point, nor can you toss in a credit card to eliminate ads or access premium content or perks. Tubi is 100% ad-supported, which means you'll see commercials before and also during content.

Is Tubi growing? ›

Tubi has seen double-digit growth in all audience segments over the past year — with the most growth among college educated and affluent demos, placing Tubi on par with U.S. national averages.

How many users does Tubi have? ›

Tubi had 51 million monthly active users worldwide as of the first quarter of 2022, marking a jump of nearly 20 million MAUs within two years. Tubi is an ad-supported video streaming service (AVOD) which launched in 2014, and was acquired by Fox in early 2020.

Does Tubi make original content? ›

While other companies focus on creating a small handful of originals with broad reach, Tubi creates a massive library of originals to super serve fandoms… At a time when many companies are scaling back, Tubi is planning to double down by doubling down our number of originals.

How successful is Tubi? ›

Tubi, the Fox-owned free ad-supported video service, saw double-digit growth across audience segments in the past year and reached 51 million monthly active users in the last quarter. It marks notable growth in 2021, as Tubi's active users stood at 33 million at the end of 2020.

How much did Tubi sell for? ›

Fox acquired Tubi for $440 million in 2020. As free, ad-supported streaming gained traction, it has been on a steep upward trajectory in terms of advertising revenue and viewership.

How does Pluto TV make money? ›

Pluto TV makes money by showing commercials within the video content or when switching between channels. Consequently, Pluto TV relies on an advertising-based business model. Founded in 2013, the company has risen to become one of the leading over-the-top streaming platforms.

How long are Tubi ads? ›

According to Tubi's support centre, their ad breaks are short (one to two minutes long) and only disrupt your viewing every 15 minutes or so.

Who is the CEO of Tubi? ›

How do film industry make money? ›

To get you started, here's a list of 35 different ways you can make money as a filmmaker.
  1. Get a distribution deal for your film.
  2. Self-distribute your films.
  3. Shoot corporate training videos.
  4. Make commercials.
  5. Shoot weddings and/or events.
  6. Teach filmmaking.
  7. Edit someone else's film.
  8. Become a content creator on YouTube.
24 Aug 2018

How much do actors get paid for short films? ›

There's no weekly rate and the SAG minimum pay per day is $125. Short films budgeted under $50,000 and running 40 minutes or less have no set SAG wage rates. The short-film agreement doesn't require a theatrical release: film festivals or free streaming websites such as YouTube are acceptable.

How do movie investors get paid? ›

The Investor's Share is typically defined as 50% of the total Net Proceeds. The other 50% of the Net Proceeds goes to the producer (the “Producer's Share”). Any talent and other non-investor third parties who have been promised a back-end share in the movie are paid their percentage out of the “Producer's Share.”

How many ads are in a Tubi movie? ›

Ads only take up 4-6 minutes per hour of viewing, occurring every 12-15 minutes at 3-5 ads per pod, giving advertisers increased brand recognition and recall in an environment where the viewer is most receptive.

Is Freevee free? ›

Amazon Freevee offers a selection of digital movies and TV shows for no additional cost. Amazon Freevee is a free, ad-supported video streaming service available in the United States and U.S Territories.

What channels does Tubi have? ›

Initially available on Android, Amazon Fire TV, and the Roku® platform, News on Tubi features content from FOX Television Stations, NewsNOW from FOX, FOX SOUL, Bloomberg TV, NBC News NOW, PeopleTV, CBC, WeatherNation, Cheddar, Altice USA's News 12 New York, fubo Sports Network, and Black News Channel.

How many subscribers does Pluto TV have? ›

Global number of Pluto TV MAUs 2020-2022

Paramount Global announced in the second quarter of 2022 that Pluto TV had nearly 70 million monthly active users worldwide, about 30 million more than in the corresponding quarter a year earlier.

What countries is Tubi TV available? ›

About Tubi

Currently available in the US, Canada, Mexico, and Australia, Tubi can be accessed on a wide range of devices.

Who runs Freevee? ›

Amazon Freevee is an American ad-supported video on demand streaming service owned by Amazon, with original and licensed programming.

Is Tubi TV publicly traded? ›

Learn how to easily invest in Tubi shares. Tubi Limited is a specialty industrial machinery business based in Australia. Tubi shares (2BE) are listed on the Australian Securities Exchange (ASX) and all prices are listed in Australian Dollars.

What kind of content does Tubi have? ›

Tubi, a division of FOX Entertainment, is an ad-supported video-on-demand service with more than 45,000 movies and TV shows in the U.S., including a growing library of Tubi Originals, 150+ local and live news, sports and entertainment channels, and 400+ entertainment partners, featuring content from every major ...

Is Tubi similar to Roku? ›

Getting to Know Tubi

Tubi is more like The Roku Channel than Pluto TV. There's lots of on-demand content, but just 99 (not yet 100) live news and sports channels.

What does Netflix pay for movies? ›

Netflix doesn't publicly disclose its deals, but from what we managed to gather around the Internet, Netflix is currently paying between $100 and $250 million for blockbuster movies, while popular TV shows with multiple seasons have budgets that range from $300 to $500 million. How much do Netflix directors make?

How does Pluto TV make money? ›

Pluto TV makes money by showing commercials within the video content or when switching between channels. Consequently, Pluto TV relies on an advertising-based business model. Founded in 2013, the company has risen to become one of the leading over-the-top streaming platforms.

How do I get my movie on Hulu? ›

How To Get Your Video Distributed on Hulu
  1. Step 1: Get Clear on Requirements for Captions and Subtitles. ...
  2. Step 2: Create Closed Captions. ...
  3. Step 3: Approach Hulu by Email. ...
  4. Step 4: Team up with a Video Distributor (if necessary)

How do streaming services make money? ›

Some of the ways you can make money include: Sponsorships, where whole streams are sponsored by a brand. Banners and other types of advertisements you can display during your streams or on your channel or profile page. Sponsored content, like when a game developer pays you to play their game.

How does a movie make money? ›

The film industry is in flux, and ticket sales alone don't drive revenue. There's merchandising, VOD, streaming video, foreign sales, and a plethora of other distribution channels that can help filmmakers, producers, and studios turn a profit.

How do movies make money on streaming? ›

The math in selling to streamers is easy — worldwide rights go to the highest bidder. Streaming services usually pay a premium over the film's production budget, allowing studios to make slightly more than what it would take to break even.

How do free TV channels make money? ›

Broadcasters make money largely through on-air advertising as well as fees to third parties for content retransmission. Cable networks provide content to distributors, including cable, telecommunications, and satellite operators. They also make money selling air time for advertisements.

How do fast channels make money? ›

It stands for free ad-supported streaming TV services. It's much like a linear traditional TV channel, but for OTT and CTV platforms. A FAST channel is monetized through ads and is free for the viewer. FAST has seen rapid growth in the last few years and is extremely popular among cord-cutters.

How much does Pluto cost? ›

It also has channels like Pluto TV that stream content, including live news and more. For $4.99 a month, you can access even more movies and shows. You can also pay $9.99 a month to enjoy the service ad-free.

How much do Tubi actors make? ›

While ZipRecruiter is seeing salaries as high as $154,024 and as low as $20,767, the majority of TUBI TV salaries currently range between $39,803 (25th percentile) to $80,184 (75th percentile) with top earners (90th percentile) making $119,988 annually in San Francisco.

How much did Tubi sell for? ›

Fox acquired Tubi for $440 million in 2020. As free, ad-supported streaming gained traction, it has been on a steep upward trajectory in terms of advertising revenue and viewership.

Does Tubi stand for anything? ›

a combining form representing tube in compound words: tubiform.

How do I sell my movie to Netflix? ›

Pitching an idea to Netflix

If you have an idea, game, script, screenplay, or production already in development that you'd like to pitch to Netflix, you must work through a licensed agent, producer, attorney, manager, or industry executive, as appropriate, who already has a relationship with Netflix.

How do I pitch a Web series on Amazon? ›

Create an episodic series
  1. Sign in to the Prime Video Direct website, and then click Your Videos.
  2. Click the Episodic tab.
  3. Click Add Series.
  4. Select a Title metadata language. ...
  5. In the Title box, enter a name. ...
  6. In the Category list, select a category that matches the content you're submitting.

How do I submit a movie to Netflix? ›

How To Submit A Film To Netflix?
  1. Step#01 – Write A Pitch To Promote Your Film.
  2. Step#02 – Pitch Your Movie To A Third-Party Group.
  3. Step#03 – Let The Distributor Or Aggregator Pitch Your Film To Netflix.
  4. Step#04 – Wait For Netflix To Either Accept Or Reject Your Pitch.

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