Tubi launched in San Francisco in 2014 and operates as a free, ad-supported streaming service that does not require registration. The service monetizes through commercial spots and reports 97 million monthly active users, capturing 2% of TV consumption on television screens in May, outpacing Peacock and Paramount+. Rising costs for original content have pushed subscriptions up and encouraged many services to add ad tiers, raising average monthly streaming bills to $61 for households using four services. Tubi's marketing team reports few complaints about ads and positions its commercials as less gimmicky than typical online advertising.
Before the streaming boom, the absence of commercials was a main selling point of services like Netflix. But as companies increasingly focus on expensive original content, subscription prices have risen. Some have advertising on their cheaper plans - Hulu, Prime Video and Peacock, among others -pushing the average monthly bill to $61 a month for American households using four streaming services, up from $48 compared to 2023, according to industry consulting firm Deloitte.
Most of the chatter on social (media) is the fear we're going to put up a paywall, Nicole Parlapiano, Tubi chief marketing officer, told the Chronicle via Zoom from her Los Angeles office. We never get complaints about the ads. As soon as we look more upmarket, they think being free is too good to be true. We don't feel that way.
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