‘We only make money when people watch,’ Tubi’s CEO on strategy, streaming market

Tubi, a FAST platform that many Americans may have never heard of, is now outperforming SVOD options in total viewing time while charging viewers nothing. The platform’s success challenges the conventional wisdom that premium subscriptions are the future of streaming.

During a recent interview on the “On with Kara Swisher” podcast, Tubi CEO Anjali Sud revealed that the platform now reaches over 80 million monthly active viewers, with approximately 65% being cord-cutters or cord-nevers who have never subscribed to traditional cable.

“We are the most watched free movie and TV service in America,” Sud explained. “Think about YouTube for movies and TV shows, or if you think about how much we are entertained on social media or online gaming, it’s the same model.”

The platform’s success comes at a time when many viewers are experiencing what Sud describes as “fatigue with streaming services today.” She points to “a paradox of choice” in the marketplace, with “too many subscriptions, tiers. Prices are increasing. Content’s feeling less differentiated.”

Tubi’s business model differs fundamentally from subscription-based services.

Rather than focusing on premium original content to drive subscriptions, Tubi prioritizes engagement through its library of over 250,000 TV episodes and movies, along with 250 live channels. The platform generates revenue solely through advertising, which Sud argues creates better alignment with viewer interests.

“We only make money when you are watching actively, because we only make money on advertising,” Sud noted. “Fundamentally changes how we think about everything.”

This approach appears to be working.

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According to Sud, Tubi expects to cross $1 billion in annual revenue in the coming quarters, though the company remains unprofitable as it prioritizes growth. The platform now outranks several major subscription services including Peacock, Max, Paramount+ and Apple TV+ in total viewing time.

The Gauge report from Nielsen in October 2024 shows Tubi with a 1.8% share of viewing by platform, with streaming accounting for 40.5% of total viewing by platform.  

While some critics have characterized Tubi as a “bargain basement” for content, Sud embraces the platform’s diverse and sometimes unconventional programming. The service has found success by catering to specific audience segments, with nearly half of its users being Black viewers as of June 2023. The platform features specialized categories ranging from Black cinema to horror genres, letting audience engagement drive content decisions.

“Our whole premise is breaking the monoculture,” Sud stated. “It’s saying what people might see as niche is actually core, if we can replicate that and serve many, many different fandoms.”

Looking ahead, Tubi is exploring new content creation models through initiatives like Stubios, its fan-fueled studio where creators can pitch projects directly through an app. The platform has also partnered with The Blacklist to greenlight five new films, part of its strategy to democratize storytelling in Hollywood.

“If Tubi does its job, we should be able to offer a better value proposition, because we are really only successful when the viewer is engaged,” said Sud.