LOS ANGELES — Tubi, the Fox Corp.-owned free streaming platform, is gaining traction in the competitive streaming market, drawing viewers who prefer ad supported content and helping the company reach profitability this year.
The platform has long been considered part of a secondary tier of streaming services alongside lower budget offerings such as Pluto TV and The Roku Channel.
But Tubi’s recent growth demonstrates that free streaming platforms can compete with subscription based giants for viewers, particularly among younger audiences.
“Our fans come in, and they behave like subscription streaming viewers. The only difference is they don’t pay for it,” said Nicole Parlapiano, Tubi’s chief marketing officer, in an interview.
Netflix, Disney+, and other subscription services have dominated the streaming market for years, investing billions in original content to attract and retain subscribers.
Rising subscription costs and crackdowns on password sharing have prompted some viewers to reconsider their paid services, creating an opportunity for free, ad supported streaming options.
“People used to cut the cord, now they’re canceling subscriptions. And is that driving more consumption into free streaming? Absolutely,” said Adam Lewinson, Tubi’s chief content officer, during a CNBC interview.
Tubi has leveraged this shift by offering a large content library, including licensed films and TV shows, original productions at a smaller scale, and high profile sports events such as the Super Bowl and Thanksgiving Day NFL games.
The platform now boasts more than 300,000 titles and over 100 million monthly active users. Ad supported streaming as a growth strategy. Industry analysts said Tubi’s approach could signal a broader shift in the streaming industry.
“Free, ad supported platforms are increasingly appealing to younger viewers who want flexibility without a subscription,” said Elena Martinez, a media analyst at Digital Trends Research.
“Tubi has positioned itself effectively by combining popular entertainment and live sports while keeping content accessible.”
Tubi’s strategy contrasts with the traditional subscription based model, which relies on paid memberships and high budget original content.
Analysts say ad supported streaming may become a sustainable alternative for media companies navigating price sensitive audiences.
According to Nielsen’s monthly streaming analysis, Tubi accounted for 2.1 percent of total streaming minutes in November, ahead of NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max.
Google’s YouTube continues to lead the rankings. Nearly 60 percent of Tubi’s audience consists of millennials and Generation Z, and nearly half identify as multicultural, according to an MRI Simmons Cord Evolution Study.
By comparison, Netflix reported more than 300 million subscribers as of late 2024, while Disney+ reported 131 million subscribers at the end of September.
Fox reported in October that Tubi reached profitability for the first time in the fiscal quarter ended Sept. 30. Revenue grew 27 percent for the quarter, driven by an 18 percent increase in total view time.
Fox CEO Lachlan Murdoch said the company expects Tubi to become a meaningful contributor to earnings in the near term. Viewers cited affordability and content variety as reasons for choosing Tubi.
“I don’t want to pay for multiple subscriptions, but I still want to watch trending shows and movies,” said 25 year old Los Angeles resident Mia Johnson. “Tubi gives me that without a monthly bill, and the ads are manageable.”
College student Raj Patel from New York added, “I mostly watch on my phone, and Tubi has everything from TV classics to sports highlights. It’s convenient, and I don’t miss out because I’m not paying.”
Industry observers expect Tubi’s ad supported model to continue influencing the streaming sector. Analysts say platforms with large libraries and targeted ad revenue could carve out a stable niche amid subscription fatigue.
“Tubi demonstrates that profitability doesn’t require massive subscription fees if a platform can attract and retain a loyal, engaged audience,” said Martinez. “We may see other media companies adopt similar models as streaming evolves.”
Tubi’s growth highlights the rising influence of free, ad supported streaming platforms in a market long dominated by subscription services.
By attracting younger viewers, offering diverse content, and leveraging Fox’s sports assets, the platform has reached profitability and is gaining recognition among media giants.
The trend underscores an ongoing shift in digital media consumption, as audiences balance cost, convenience, and variety.
