Free streaming platform Tubi just hit profitability, and it’s doing something most subscription services can’t seem to crack.
The Fox Corp.-owned service is capturing younger audiences who actually want to watch ads—as long as they don’t have to pay a monthly fee.
While Netflix and Disney+ continue raising prices and cracking down on password sharing, Tubi quietly climbed into streaming’s big leagues with over 100 million monthly active users.
In November, Tubi claimed 2.1% of total streaming minutes on Nielsen’s Gauge tracker, surpassing both Peacock and HBO Max.
Why Free Streaming Is Winning
Subscription fatigue is real, and consumers are voting with their wallets.
After years of cord-cutting, viewers are now canceling subscriptions at an alarming rate. Every major platform has implemented multiple price hikes recently, pushing frustrated users toward free alternatives.
People used to cut the cord, now they’re canceling subscriptions. And is that driving more consumption into free streaming? Absolutely.
Tubi Chief Content Officer Adam Lewinson explained how changing viewing habits are reshaping streaming economics.
Paige Bulera, a 23-year-old Buffalo resident, embodies this shift perfectly. Despite having access to major streaming platforms through family accounts, she gravitates toward Tubi.
Not only are they going up in price, it seems like with each price increase you’re losing things. It’s like now you can’t share accounts with people on Netflix, or even if it goes up in price, there’s still going to be ads.
Bulera told CNBC her frustration mirrors millions of viewers experiencing subscription fatigue.
Fox’s Strategic Gamble Pays Off
Fox Corporation took a radically different approach to streaming than its media competitors.
After selling entertainment assets to Disney in 2019, Fox acquired Tubi for $440 million in 2020. While other companies spent billions producing original content chasing Netflix’s model, Fox bet on free, ad-supported streaming.
In October, Fox reported Tubi reached profitability for the first time during the fiscal quarter ending September 30. CEO Lachlan Murdoch noted the milestone came “earlier than expected.”
The numbers tell a compelling story:
27% revenue growth for the quarter
18% increase in total view time
1 billion hours of streamed content monthly
Over 300,000 titles available
Fox stock jumped more than 40% this year, significantly outperforming other media companies struggling with streaming uncertainty.
Viewers Act Like Subscribers—Without Paying
Tubi’s secret weapon lies in viewer behavior that mirrors paid platforms.
Our fans come in, and they behave like viewers. The only difference is they don’t pay for it.
Chief Marketing Officer Nicole Parlapiano emphasized this distinction matters tremendously for advertisers.
Unlike traditional FAST channels where viewers passively consume whatever’s programmed, 95% of Tubi viewing is on-demand. Users actively select films and series, creating engaged audiences more receptive to advertising.
Ninety-five percent of people are coming in with the intent to watch what they want to watch, and they are leaned in. They’re not passive viewers.
This intentional viewing translates directly into advertising revenue. Fox CFO Steve Tomsic reported overall TV advertising revenue increased 6%, primarily driven by Tubi’s growth.
Capturing Generation Z Through Creator Content
Nearly 60% of Tubi’s audience consists of millennials or Gen Z viewers, according to an MRI-Simmons Cord Evolution Study.
Recognizing this demographic gold mine, Tubi launched “Tubi for Creators” in June 2024.
The idea behind it is to give creators a pathway to Hollywood that really allows them to maintain their authenticity that made them popular in the first place and maintain a lot of creative control.
Rich Bloom, head of Tubi for Creators, explained the program’s explosive growth—starting with six creators and 500 episodes, now featuring over 100 creators with more than 10,000 episodes.
Popular creator content includes:
Dan and Riya’s “Beverly Valley High”
FunnyMike’s “Mr. Creepy Eyes”
TikTok star Noah Beck’s “Sidelined” franchise
The “Sidelined” movies alone attracted nearly 20 million viewers, with new viewers watching the sequel having a median age of just 21.
Nostalgia Meets Modern Content
Surprisingly, Gen Z isn’t just watching creator content—they’re diving into classic shows like “Columbo” and “Murder, She Wrote.”
We are really proving that we can bring young viewers to a long-form streaming platform. There’s a perception that they’re only interested in short-form – completely not accurate. So long as you have relevant content for their fandom, they’ll come to Tubi.
Lewinson emphasized that retention rates for viewers discovering creator content actually exceed general new viewer retention.
Building Library Depth Without Breaking Bank
Tubi’s content strategy focuses on licensing rather than massive original production budgets.
The platform boasts an impressive library spanning popular hits and niche titles. For horror fans like Bulera, Tubi offers 9,000 horror titles—the largest collection available on any streaming platform.
Familiar favorites populate the service too: “Coraline,” “The Wolf of Wall Street,” and “Tom and Jerry” sit alongside lesser-known gems.
Tubi even tapped Fox’s sports arsenal, airing two NFL games this year including the Super Bowl in February and Thanksgiving Day matchup in November.
Advertiser Appeal In Uncertain Times
While subscription platforms tout ad-supported tiers, transparency remains murky about actual ad-tier viewership size.
We’re 100% ad-supported, which other streamers are not. Yes, they have ad-supported tiers, but it’s unclear on each platform how big those tiers are and how much viewing is happening in an ad-supported environment.
Parlapiano highlighted this distinction as critical for advertisers seeking guaranteed reach.
Combined with young, engaged audiences actively selecting content, Tubi presents an increasingly attractive proposition for brands struggling to reach elusive Gen Z consumers.
Recent MoffettNathanson analysis confirms streaming engagement remains strongest at YouTube, followed by free ad-supported platforms like Tubi, Pluto, and The Roku Channel.
Looking Forward
Fox CEO Murdoch expressed hope that Tubi continues its trajectory toward becoming “a meaningful contributor” to earnings in the near term.
For viewers like Bulera, free streaming represents more than cost savings—it’s about value and choice without restrictive paywalls.
With Tubi, it’s completely free – you know you’re getting ads, but it’s promoted in a way where you can watch old movies, new movies, or Tubi originals, so that’s why I’m a big fan of the platform, mainly because of the fact that it’s cost-effective.
As subscription services continue raising prices while reducing features, Tubi’s profitability milestone suggests free ad-supported streaming isn’t just surviving—it’s thriving as viewers fundamentally rethink how much they’re willing to pay for entertainment.
