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How Does Tubi TV Make Money (Business and Revenue Model)

The Tubi TV business model

How Does Tubi TV Make Money?
Here’s what you should know:
  • What is Tubi TV, and how does Tubi TV work?
  • How does Tubi TV make money?
  • Advertising (from Commercial Breaks)
  • Tubi TV profit and revenue
  • What is the Tubi TV business and revenue model?
  • Tubi TV funding, net worth, and valuation

How does Tubi TV make money and how is it free to watch? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Tubi business model, their profit and revenue, and how Tubi works.

What is Tubi TV, and how does Tubi TV work?

Tubi is a streaming service that lets users watch live TV, movies, and TV shows for free without a subscription.

Founded in 2014 by Farhad Massoudi and Thomas Ahn Hicks, Tubi went on to get acquired by the Fox Corporation for a reported $440 million on March 17, 2020.

Since that time, Tubi now has more than 51 million active users worldwide.

How does Tubi TV work? To watch Tubi TV, users can access it through a few different ways such as streaming devices (Amazon FireStick, Roku, Apple TV, etc.), smart TVs, downloading the app, or by simply heading over to their website and streaming it there.

Once on the Tubi TV platform, users have access to over 40,000 movies and TV shows that they can watch and enjoy for free.

Some of Tubi’s competitors include Pluto TV, Peacock, Sling TV, NetflixRoku, Hulu, YouTube TV, Redbox, and other streaming platforms.

Tubi TV App in Apple App Store | Tubi TV Business Model | How Does Tubi TV Make Money? | How Does Tubi TV Work?
Source: Apple App Store | Tubi TV

How does Tubi TV make money?

According to Tubi, Tubi TV now has over 51 million active users with more than 3.6 billion hours of content watched on the platform in 2021.

So how does Tubi TV make money off of all these active users and hours watched?

Below is a breakdown of how much money Tubi TV makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Tubi TV makes money (in 2022):

Tubi has a business model that makes money in just one (1) way; advertising through commercial breaks.

#1. Advertising (from Commercial Breaks)

Because Tubi TV is an ad based supported network and does not offer a subscription service, Tubi TV makes all of its money through advertising from its commercial breaks.

So, Tubi TV does have commercials? Yes, this is how they generate all of their ad revenue.

Each commercial break occurs every 12 to 15 minutes, with 3 to 5 ads per break; for a total of 4 to 6 minutes of ads per hour of viewing (equivalent to each break lasting 1 to 1 1/4 minutes), according to Tubi.

As noted above, Tubi TV has more than 51 million active users that consumed over 3.6 billion hours of content on its platform in 2021. And all of those hours of content watched led to more impressions on their commercial ads, which leads to more ad revenue for Tubi TV and their partners. Although they do not make public how much it costs to advertise on Tubi TV.

How much does it cost to advertise on Tubi TV? | Tubi TV Business Model | How Does Tubi TV Make Money? | How Does Tubi TV Work?
Source: Tubi TV

Note: Tubi TV does not have an ad free, paid subscription option and make their money 100% through commercial ads.

Tubi TV profit and revenue

Tubi has not released any official reports in regards to company earnings.

Note: Because the Fox Corporation, the parent company of Tubi, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Fox’s publicly released financial reports, including annual reports, through Fox’s investor section on their website.

What is the Tubi TV business and revenue model?

Tubi TV makes money through a few revenue models that they combine within their company, they are:

  • Advertising business model
  • B2B2C (partnerships) business model

Tubi TV funding, net worth, and valuation

According to Tubi’s Crunchbase profile, Tubi TV has raised $26 million over 5 rounds.

On March 17, 2020, Tubi was acquired by the Fox Corporation for $440 million, per reports.