Tubi Presses Play on Original Content
Tubi Has Grown Using Existing Content
Tubi, the streaming service owned by Fox Corp (FOX), is planning to start creating original content. Fox purchased Tubi for $400 million last March as a way to enter the streaming war. Prior to this acquisition, Fox did not have its own streaming service.
Tubi has already attracted over 33 million users through offering old movies and shows. The platform is free for viewers and it generates revenue by selling ads. Tubi’s library includes over 30,000 movies and shows from The Masked Singer to Duck Dynasty.
The Subscription Model Compared to the Ad-Supported Model
Traffic to Tubi surged by 58% in 2020. This fiscal year its ad revenue will be $300 million. The company’s leadership believes it could generate $1 billion in ad revenue in the near future—especially if its original content helps attract more viewers.
Streaming companies like Netflix (NFLX) and Hulu started out offering mainly reruns and licensed programming. But now, creating engaging, original content is a central part of their business models. These companies rely on subscription fees rather than ads to drive revenue. They use their original content to build customer loyalty and grow their subscriber base.
Retaining Viewers as In-Person Entertainment Restarts
Other ad-supported streaming platforms, which have relied on reruns until now, are also exploring the possibility of creating original content, including Roku (ROKU) and Pluto TV, owned by ViacomCBS (VIAC).
Over the past year, free, ad-supported platforms have been able to attract users with pre-existing content. As more in-person entertainment becomes available, these platforms may need to offer new, unique content to retain viewers’ attention.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.