Tubi reaches profitability with young ad-supported viewers

Date:

A free streaming model gains momentum

Tubi has reached profitability in 2025 by focusing on an audience many subscription platforms are actively courting: younger viewers willing to watch advertising in exchange for free content. The Fox owned streaming service, long considered part of a secondary tier alongside Pluto and The Roku Channel, is gaining scale and relevance in the broader streaming landscape.

In November, Tubi accounted for 2.1% of total US streaming minutes measured by Nielsen’s Gauge, surpassing Peacock and HBO Max, though still trailing YouTube, which leads overall viewership.

Rising costs push viewers toward free streaming

Escalating subscription prices, repeated price increases, and tighter password sharing rules across paid streaming services have accelerated consumer interest in free, ad supported platforms. Tubi executives say this shift is driving increased engagement as viewers cancel subscriptions and redirect their time toward free alternatives.

Tubi reports more than 100 million monthly active users and over one billion hours of content streamed each month, positioning it as one of the largest ad supported platforms globally.

Audience profile attracts advertisers

Nearly 60% of Tubi’s audience consists of millennials and Generation Z viewers, with close to half identifying as multicultural. Executives say these viewers behave similarly to subscription streaming users, selecting content on demand rather than watching passively.

This on demand viewing behavior makes audiences more receptive to advertising, a key advantage for a platform that is entirely ad supported rather than offering optional ad tiers.

Library scale and selective originals

Tubi’s catalogue exceeds 300,000 titles, built largely through licensed films and television series across mainstream and niche genres. While original programming exists at a smaller scale than competitors, the platform has leveraged Fox’s sports assets, including airing the Super Bowl and a Thanksgiving NFL game.

The platform has also developed strength in specific genres such as horror, where it offers roughly 9,000 titles, alongside well known films and classic television.

Fox’s alternative streaming strategy

Fox acquired Tubi for $440 million in 2020 after selling most of its entertainment assets to Disney. The company has since positioned Tubi as its primary digital growth engine, complementing its news and sports focused television portfolio.

In October, Fox reported that Tubi achieved profitability earlier than expected in the fiscal quarter ending September 30, supported by 27% revenue growth and an 18% increase in total viewing time. Fox shares have risen more than 40% this year, outperforming much of the media sector.

Deeper push into Gen Z and creators

Tubi has expanded its appeal to younger audiences through initiatives such as Tubi for Creators, a program designed to bring digital creators into long form streaming while preserving creative control. The initiative has grown from six creators and 500 episodes to more than 100 creators and over 10,000 episodes.

Original projects and creator driven franchises have shown strong traction, with some titles drawing tens of millions of viewers and skewing toward very young median ages.

Nostalgia and long form engagement

Executives say younger viewers are also embracing nostalgic content, with classic series finding renewed popularity. Tubi argues this blend of new creator content, originals, and legacy programming is proving that younger audiences remain engaged with long form viewing when the content aligns with their interests.

The growing Gen Z and millennial base has become a central selling point for advertisers, reinforcing Tubi’s position as a viable and profitable alternative to subscription streaming models.

  • Tags
  • n

Share post:

Popular

More like this
Related

Stocks move on upgrades, court rulings and corporate news

Vertiv jumps after analyst upgrade Shares of Vertiv rose 8%...

Tesla loses EV sales crown after second year of decline

Global deliveries fall as competition intensifies Tesla has lost its...

Disney to pay $10m over children’s privacy violations

Settlement over mislabeled YouTube content The Walt Disney Company has...

New laws and regulations take effect in Ontario in 2026

Stricter penalties for impaired driving Ontario is introducing tougher measures...