For some time now, the size of a streaming service has seemed directly tied to the budget of the company behind it. In that context, there’s a service that’s managing to go toe-to-toe with the biggest names. And it does so from a different position.
Tubi has worked its way into the conversation around major services with a simple but very well-executed idea: watch the content we care about for free. Starting from that premise, the platform has turned a profit this year and has shown that the free model can also compete with the biggest players. How does it do it?
A free, ad-supported model people already expect
Tubi’s key advantage begins with free access as a genuine starting point. The platform, owned by Fox Corp, runs 100% on advertising, which is a completely different approach. Unlike many subscription services that have added ad tiers and in-between plans that are often complicated to compare or assess, here the proposal for users is clear.
That clarity becomes even more important when other services mix advertising with a paid subscription. When the catalogue is not only large but also free, advertising is simply taken for granted. Put another way, we enter the service knowing the deal, and that explicit pact dramatically reduces friction.
The data backs up that perception. As reported by CNBC, in November Tubi accounted for 2.1% of total streaming minutes. That places it ahead of Peacock and Max, even though services like YouTube remain in first place. Tubi’s actual screen time is competitively strong, and in streaming, time is what rules.
A huge library and live sports that build a habit
To sustain that momentum, Tubi plays a card that works especially well: a massive licensed library. The platform bases its offering on well-known, in-demand films and series and complements that with originals, though on a smaller scale than the industry giants. The combination of licensed content and how it rotates, along with the presence of originals, shapes a surprisingly dynamic catalogue where there’s always something new to watch.
The company’s figures help us understand the scale. Tubi says it has more than 100 million monthly active users and 1 000 million hours streamed per month, as well as a catalogue topping 300 000 titles. That kind of volume changes the perception of it being a secondary service.
On top of that, Fox brings a differentiating advantage: sports muscle. Tubi aired two NFL games this year, the Super Bowl in February and a Thanksgiving game, and that has a double effect: visibility and habit. We come in to watch an event and stay for the rest of the catalogue—especially when we can watch it for free.
Profitability, advertising, and what it means for the rest of streaming
Tubi reached profitability for the first time in the fiscal quarter ended 30 September, and it did so with growth: 27% higher revenue, driven by an 18% increase in viewing time. Translated into advertiser-market language, that looks very good: more hours watched equals more inventory and, if attention is high, better value per ad.
The platform claims that around 95% of people arrive intending to watch something specific, and that again strengthens the advertising proposition. Better advertisers and more interest in the platform push profitability up and, with it, a virtuous circle is fed—one that puts Tubi in a very interesting position within the streaming market.
While the big services are moving in the opposite direction, adding ads to lower prices while the bulk of revenue comes from increasingly expensive subscriptions, Tubi is following another strategy. One that has already delivered results before with sites like YouTube. A strategy that could mean that, in a few years, we’ll be looking at a very different streaming landscape.
