As streaming becomes more expensive, Tubi cashes in on the value of free

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As a devoted cinephile who has been following the streaming landscape closely for years, I must express my excitement and admiration for Tubi, the free ad-supported video-on-demand service that has been thriving in the era of “streamflation.” With rising subscription prices from competitors like Netflix, Disney+, Max, Peacock, and others, it’s no wonder more consumers are turning to Tubi.

In the era of “streamflation,” it’s a good time to be Tubi.

Over the past year, the subscription fees for Netflix, Disney+, Hulu, and NBC’s Peacock have gradually increased. In response, some viewers have shifted towards using the ad-supported, free video-on-demand platform operated by Fox Corporation.

According to Nielsen’s latest findings, May marked Tubi’s all-time highest viewership, with an average of 1 million people tuning in each month. This represents a significant 46% increase compared to the same period last year.

Tubi outperformed Disney+ with an average of 969,000 viewers, surpassing the numbers for NBCUniversal’s Peacock, Warner Bros. Discovery’s Max, and Paramount Global’s Paramount+. In addition, Tubi surpassed free streaming competitors such as Roku Channel and Pluto TV. YouTube is currently the only free ad-supported streaming platform with a larger viewer base than Tubi.

In the third quarter, Tubi’s revenue increased by 22% compared to the same period the previous year, even as the advertising market showed signs of being slow. (Fox reported this information.)

According to an analysis by MoffettNathanson researchers, Tubi is surpassing its rivals in the ad-supported video on demand market with unexpectedly robust expansion.

The rising subscription fees of our competitors have become a significant advantage for Tubi. As Netflix, Amazon, and other streaming services start generating revenue from ads while increasing their own fees, more cost-conscious consumers are finding Tubi to be an attractive alternative.

“Adam Lewinson, Tubi’s chief content officer, expressed in a recent interview that those factors will certainly have a positive effect on us.”

A tech firm based in San Francisco, established in 2017, got bought by Fox in the year 2020 for a price tag of $440 million. At present, Tubi provides access to approximately 250,000 TV episodes and films.

Approximately two-thirds of Tubi’s user base identify as individuals who have never subscribed to a traditional pay-TV service or have recently canceled their subscription. Around half of this group falls under Tubi’s multicultural category, encompassing Black, Latino, Asian, and LGBTQ+ demographics.

As a devoted fan, I’d express it this way: I’m thrilled about Tubi’s extensive collection of livestreaming channels offering shows, live sports, and news in real time. Yet, what truly captivates me is that an astounding 90% of its viewership chooses on-demand watching – a clear preference among younger audiences. Tubi proudly shares that the typical age of its audience is a youthful 39, making it the youngest demographic in television history.

Tubi offers a broadly popular product with a vast range of genres such as horror and sci-fi. Notably, it’s a go-to place for content created by Black filmmakers. The streaming service serves as the host for Village Roadshow’s Black Noir Cinema project, which intends to produce Blaxploitation films, with “Cinnamon” being the first installment featuring Pam Grier, a renowned actor from the genre’s early days.

Tubi offers a collection of classic hit TV series from the past, which are enjoyed by younger audiences who haven’t seen them before. Additionally, it provides a platform for shows that were overlooked when they originally aired on traditional TV, giving them renewed recognition through a dedicated section named “Canceled Too Soon.”

One example of a cancelled show during the 2013-14 NBC TV season, titled “Believe,” lasted only 13 episodes. However, this series produced by “Gravity” director Alfonso Cuarón, which centers around a girl with extraordinary powers, has now gained popularity on Tubi.

Johnny Sequoyah, left, Delroy Lindo, Alexie Gilmore and Jake McLaughlin on the 2013 NBC series “Believe,” now a hit on Tubi.
(NBCUniversal)

Based on the current trend, we expect “Believe” to attract significantly more viewers on Tubi than it did during its initial broadcast.

Moving forward, Tubi aims to increase its output of original productions in the form of programs and films. These creations significantly attract consumers when deciding on a streaming platform. To date, Tubi has produced approximately 200 titles, primarily focusing on genre movies, documentaries, and animated series with modest budgets.

With achievement comes the allure of drawing in more distinguished artists. Production is underway for Tubi’s original movie “The Thicket,” a gripping western featuring Peter Dinklage and Juliette Lewis.

Two years ago, when Lewinson initially approached Dinklage about joining his project, some clarification was necessary for Dinkague to agree.

“I had to get him comfortable with what we are building,” Lewinson said.

With Tubi growing more prominent in the television world, it’s become less of a challenge for Lewinson to attract big-name actors. Starting this fall, the platform will debut its initial original series, “The Z Suite,” featuring Lauren Graham – a well-known TV figure recognized for her role in “Gilmore Girls.”

As a moviegoer who’s always on the lookout for fresh and relatable stories, I’m excited to share that “The Z Suite” is a must-watch for anyone intrigued by generational dynamics at work. In this series, I find myself in the shoes of Graham – a seasoned advertising executive who’s recently been let go from his agency. To add insult to injury, the company is now being run by its energetic and tech-savvy Gen Z employees. This intriguing premise caught the attention of Tubi’s marketing team, who noticed an overflow of TikTok videos exploring similar themes of intergenerational conflicts in today’s workplaces. So, get ready to join me on this engaging journey as we dive into the world of “The Z Suite”!

Social media provides Tubi with more than just programming ideas; it also receives support from enthusiastic fan communities who regularly share content on their platforms.

Nicole Parlapiano, Tubi’s marketing chief, mentioned that there’s a user on Reddit who maintains a detailed spreadsheet of horror movies’ synopses. We excel at connecting with fan bases, be it through Reddit or TikTok.

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2024-07-18 22:22