Despite Tubi having a few hundred free linear content channels, the majority of streamers who watch TV shows and films through the service are doing so through on-demand features, a senior Fox executive said on Monday.
Speaking at the Deutsche Bank Media, Internet & Telecom Conference, Fox Corporation President and Chief Operating Officer John Nallen reaffirmed his company’s position that Tubi will earn its first $1 billion in revenue this year from its global base of 97 million monthly active users.
Around two-thirds of all streamers who watch content via Tubi live in households that do not subscribe to a traditional pay TV service, either because they’ve ditched cable or satellite platforms over the years, or they’ve never subscribed to a pay TV service at all. Tubi delivers around six minutes of ads per hour of content streamed, Nallen said, and slightly less than half of all ads are directly sold by Fox.
“Tubi is a VOD service,” Nallen affirmed. “By that, I mean it’s not a FAST service — 97 percent of the consumption on Tubi is video on-demand…and just over half of the revenue that we generate on Tubi is programmatic.”
Nallen said Tubi plays an important role in Fox’s forthcoming Upfront presentation, where the company is playing up the delivery of its direct and programmatic ad opportunities. By comparison, the company is focusing less on its other products, including those operated by Fox News Media, where “very little sales happen in the Upfront,” Nallen affirmed.
