Tubi users can access an extensive library of movies, TV shows, and even several live TV channels directly from their devices- for free! So who owns Tubi, and how do they make money?
Tubi was founded in 2014 by Farhad Massoudi and Thomas Ahn Hicks and is a subsidiary of the mass media company Fox Corporation. Although it does not charge a monthly subscription fee like most of its competitors, Tubi is able to generate revenue by inserting ads and commercials in its content.
In this article, we will talk about Tubi’s ownership and how this streaming service is able to not only sustain itself but profit, despite not charging its viewers a monthly subscription fee.
Who Owns Tubi?
If you were to browse Tubi’s extensive library, you’d notice it features a significant number of movies created by 20th Century Studios and shows that originally debuted on one of Fox TV’s many networks.
No doubt, this is due to Fox Corporation’s current ownership of the streaming service, but this wasn’t always the case.
In 2014, Farhad Massoudi and Thomas Ahn Hickes founded Tubi TV in San Francisco, California. After founding adRise, a provider of video-on-demand applications on connected devices, Massoudi, alongside adRise co-founder Hicks, felt more than prepared to transition towards on-demand streaming services.
With big-name companies like Netflix and Hulu already on the stage, Massoudi and Hicks knew they had to make their service as appealing as possible in comparison. To do this, they:
Tubi’s popularity increased in 2015 when it received an investment of $6 million from Lionsgate and Metro-Goldwyn-Mayer (MGM), allowing them to feature critically acclaimed films created by these corporations.
By 2019, Tubi’s influence and viewership had increased enough to the point that the company could confidently expand internationally to Canada and Australia.
Of course, this success also earned the attention of other interested parties intent on entering the streaming service business.
In March of 2020, Fox Corporation sold its five percent stake in Roku to acquire Tubi TV for $440 million.
How Did This Shift Affect Tubi?
The transition that comes with a change in ownership can be unpredictable. Sometimes, it’s smooth sailing, and other times, a messy process, and the business suffers as a result.
Thankfully for Tubi, it falls into the first category. Since being acquired by Fox Corporation, Tubi’s success has only grown.
True, its reputation and viewership aren’t quite on par with competitors like Netflix, but there’s no denying the statistical weight that the streaming service is accessed by over 50 million people monthly and recorded 3.6 billion streaming hours in 2021 alone.
Much of this can be accredited to Fox Corporation’s decision to add new content partners and create user-friendly categories.
Some of these categories include Tubi Kids and Tubi en Español. In 2022, they even took the creative step of releasing their own Tubi Original content.
How Does Tubi Make Money?
Considering the relatively recent and significant societal shift away from cable television towards paying for one or more streaming service subscriptions.
Until Tubi launched, gaining these entertainment benefits free of charge is practically unheard of.
Most people assume that the fees associated with a basic subscription and any add-ons allow streaming services to offer on-demand content and profit.
So how does Tubi make money without this seemingly integral source of income?
Much like standard cable television, Tubi makes money by integrating advertisements throughout its content via commercials. However, they are not as frequent as the typical television network.
Viewers can expect to watch anywhere between four to six minutes worth of advertisements within 60 minutes of content, versus traditional television, which would nearly double the advertisement time.
Is There a Catch or Ad-Free Option?
It’s understandable if you’re skeptical that an easily accessible streaming service is completely free, but it’s the truth.
Tubi won’t even ask you to enter your credit card information, even if you make a personalized account, because there’s nothing that viewers can purchase from the service.
Unfortunately, this means that there’s no ad-free option you can purchase if you’re the type of person who can’t stand ad interruptions.
You also can’t purchase any add-ons providing you access to content from other networks, like Starz or HBO Max. What you see is what you get.
Final Thoughts
Tubi might not be the most successful or well-known streaming service available, but it is undoubtedly one of the most accessible and affordable.
Thanks to its ad-supported structure, all of Tubi’s content is free of charge, making it an exceptional option for anyone who doesn’t have the funds or interest in paying for cable TV or a streaming service subscription.
If this resonates with you, check out Tubi’s extensive library today!
