Subscription fees for major streaming services like Netflix and Disney+ have risen steadily, driving more viewers towards free, ad-supported platforms like Tubi. According to Nielsen data cited by the LA Times, Tubi achieved its highest viewership ever in May, averaging 1 million viewers, a 46% increase from the previous year.
In a landscape dominated by paid services, Tubi outperformed Disney+ and other ad-supported rivals like Peacock and Paramount+. Analysts from MoffettNathanson noted Tubi’s significant growth, attributing it partly to escalating subscription costs elsewhere in the market. “Tubi continues to pull ahead from its competition and post faster than expected growth,” said analysts in the report.
The platform’s success in outshining major players and other free alternatives such as Roku Channel and Pluto TV is noteworthy, yet not entirely unexpected. Tubi appeals to viewers willing to watch ads for free content, especially on a service they aren’t paying to use.
Founded in 2017 and acquired by Fox in 2020, Tubi boasts a content library with 250,000 TV episodes and movies. The LA Times highlights its appeal to younger audiences, with 63% of users identifying as cord-cutters or “cord-nevers.”
Despite achieving significant viewership milestones, Tubi faces profitability challenges, as detailed in a May Business Insider profile. However, the platform has reported a 22% year-over-year revenue growth.
