Every major media company and technology firm these days is investing heavily in streaming video, and the trend shows no sign of slowing down. The streaming video market is exploding right now worldwide, and for good reason. The average cable bill is now higher than all other average household bills combined, making many households look for new ways of watching tv series and movies online without cable. The latest major media company to throw its name into the cutthroat streaming wars is Fox, who has just acquired Tubi TV, offering Fox a new direct-to-consumer streaming platform. Can Fox make it in the streaming world?
According to a Fox Corporation press release published this week, Fox’s acquisition of Tubi is reported to have cost $440 million cash. The press release states that “Tubi brings to FOX an expanded consumer offering with a sizable, younger-skewing and directly connected user base that spends over 160 million hours per month watching content on the service.” According to The Hollywood Reporter, Fox sold its 5% stake in Roku in order to help fund the purchase.
Executive Chairman and Chief Executive Officer of Fox Corporation Lachlan Murdoch said the purchase of Tubi will allow Fox to expand its advertising reach. “Tubi will immediately expand our direct-to-consumer audience and capabilities and will provide our advertising partners with more opportunities to reach audiences at scale,” Murdoch said. “Importantly, coupled with the combined power of FOX’s existing networks, Tubi provides a substantial base from which we will drive long-term growth in the direct-to-consumer arena.”
Tubi saw record growth last year, expanding to reach over 25 million active monthly users who watched over 163 million hours of content in 2019. Tubi has recently signed deals to bring its service into over 30,000 hotel rooms nationwide, signaling it is continuing to expand.
Tubi can be watched for free online or through its Android and iOS mobile apps, many major streaming devices, and on some smart TVs and gaming consoles. Tubi offers thousands of hours of free, ad-supported video from major studios like Lionsgate, MGM, Paramount and more.