"The biggest streaming services in the world- Disney+, Netflix, Prime-battle for premium content and subscription dollars. Tubi, meanwhile, has gone all in on free, with its on-demand streaming app and library of more than 300,000 movies and shows. Tubi was the first streamer to add a TikTok FYP-style video scroll to its mobile interface to help users discover new shows by replicating the UX of the social media app that competes for their attention."
"All of this aligns with the streamer's strategy to target young people who have never had a cable subscription and prefer rabbit holes to broad buckets of content (an approach Sud has called "niche as core"). Tubi's genre-spanning library includes everything from blockbusters like Jurassic World and originals like the young adult sports romance Sidelined: The QB and Me to content from a growing roster of social media creators."
"It's working. While user growth seems to have slowed after exploding from 64 million in February 2023 to 97 million by the end of 2024 (Tubi now has more than 100 million users), profitability has arrived earlier than expected. Tubi generated $1.1 billion in fiscal year 2025 revenue and closed its second consecutive EBITDA-profitable quarter at the end of last year, powered by 19% year-over-year revenue growth and a 27% surge in user engagement."
Tubi, a Fox-owned streaming service, has carved a distinct market position under CEO Anjali Sud by pursuing a free ad-supported model rather than competing directly with premium services like Netflix and Disney+. The platform operates a library exceeding 300,000 titles and pioneered a TikTok-style vertical scroll interface for mobile discovery, later replicated by Netflix. Tubi targets young viewers seeking niche content through its "niche as core" strategy, featuring blockbusters, original programming, and content from social media creators. The approach has proven successful, with user growth reaching over 100 million by early 2025, profitability arriving ahead of schedule, and fiscal year 2025 revenue reaching $1.1 billion with 19% year-over-year growth and 27% increased user engagement.
#streaming-strategy #free-ad-supported-model #niche-content-discovery #youth-audience-targeting #profitability
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