The streaming industry has undergone profound transformation in recent years, shifting from subscription-dominated models to a resurgence of advertising-supported platforms. Among these, Tubi stands out as a prime example of how ad-supported video on demand (AVOD) can achieve massive scale without charging users a single fee. Owned by Fox Corporation since its acquisition in 2020, Tubi has quietly built one of the largest audiences in the streaming ecosystem, leveraging a vast content library and a carefully calibrated advertising approach to drive sustained growth.
Roots in Accessibility and Early Expansion
Tubi launched in 2014 as a free alternative in an era when paid services like Netflix were beginning to dominate. Its foundational premise was simple: offer a broad selection Anglo-American films and television series funded entirely through advertisements. This model appealed to cost-conscious viewers who were increasingly frustrated with rising subscription prices across multiple platforms.
By focusing on licensed content rather than expensive originals at the outset, Tubi avoided the high burn rates that plagued many competitors. The acquisition by Fox provided critical resources, including enhanced distribution on smart TVs and integration with broader advertising ecosystems. This strategic backing accelerated Tubi’s trajectory, turning it from a niche player into a significant force in connected TV viewing.
Decoding the AVOD Framework
At its core, Tubi’s business revolves around delivering content for free while generating revenue through targeted advertising. Viewers encounter interruptions, but the ad load remains notably lighter than traditional broadcast television—typically four to six minutes per hour, with breaks occurring every 12 to 15 minutes in pods of three to five ads.
This structure strikes a deliberate balance. It minimizes viewer frustration compared to heavier ad experiences on linear TV, encouraging longer sessions and higher retention. Advertisers benefit from an engaged audience that opts in knowingly, often leading to better brand recall and interaction rates. Tubi’s proprietary technology further refines this by enabling precise targeting, drawing on first-party data to match ads with viewer preferences without relying solely on invasive tracking.
The result is a virtuous cycle: satisfied users stream more hours, creating more inventory for advertisers, which in turn funds additional content acquisitions.
Building a Massive Content Ecosystem
One of Tubi’s defining strengths lies in its expansive library, which has grown to encompass over 275,000 movies and television episodes alongside hundreds of live channels. This scale dwarfs many paid competitors in sheer volume, particularly in catalog depth for older films, classic series, and niche genres.
Growth here has been methodical. Rather than chasing blockbuster exclusives, Tubi prioritizes licensing deals for evergreen content that retains long-term appeal. This approach keeps acquisition costs manageable while ensuring consistent viewership. Recent years have seen additions in original programming and live offerings, but the backbone remains a diverse, discovery-driven catalog that encourages browsing and extended watching.
Such breadth supports algorithmic recommendations that keep users engaged, transforming passive viewing into habitual consumption.
Metrics Behind the Momentum
Data underscores Tubi’s impressive scaling. By mid-2025, the platform surpassed 100 million monthly active users worldwide, a milestone reached after climbing from 97 million earlier in the year. This represents substantial year-over-year expansion, fueled by widespread device availability and word-of-mouth among budget-minded audiences.
Engagement figures are equally compelling. Users collectively stream around one billion hours monthly, contributing to Tubi capturing over two percent of total television viewing share in key markets. These numbers position it ahead of several subscription-based services in raw viewership minutes, highlighting the appeal of free access amid economic pressures.
Revenue growth reflects this audience surge, with advertising income rising significantly—reports indicate a 27 percent year-over-year increase in recent periods, alongside an 18 percent rise in viewing time. Achieving profitability in 2025, ahead of initial projections, validates the model’s efficiency at scale.
Navigating the Advertising Landscape
Tubi’s ad strategy extends beyond mere insertion. By maintaining a lighter load, the platform fosters tolerance among viewers who might otherwise skip ads on paid tiers elsewhere. This has proven particularly effective in reaching younger demographics and cord-cutters who prioritize cost savings.
Integration with Fox’s broader advertising sales operation amplifies reach, offering brands cross-platform opportunities that blend streaming with traditional TV. Advanced targeting capabilities, powered by in-house tech, allow for contextual and demographic precision, making inventory attractive to major marketers.
The outcome is robust monetization without alienating the user base, a delicate equilibrium that has propelled Tubi past expectations.
Comparative Edge in a Crowded Market
Against subscription giants, Tubi’s zero-cost entry removes barriers, drawing in users overwhelmed by multiple fees. Where services like Netflix invest heavily in prestige originals, Tubi excels in volume and variety, appealing to casual viewers seeking familiar comfort viewing.
Free ad-supported competitors exist, but Tubi’s library depth and distribution partnerships provide a clear differentiator. Its performance in viewership rankings—occasionally outpacing paid platforms—demonstrates that scale can be achieved through accessibility rather than exclusivity.
Overcoming Hurdles in Sustainable Growth
Scaling an AVOD service is not without challenges. Content licensing costs can fluctuate, and competition for ad dollars intensifies as more platforms adopt hybrid models. Viewer tolerance for ads remains a variable factor, particularly as attention spans evolve.
Yet Tubi’s advantages—strong ownership support, data-driven optimizations, and a proven track record of profitability—mitigate these risks. Investments in originals and international expansion signal proactive adaptation, ensuring relevance amid shifting industry dynamics.
Positioning for Continued Dominance
As the streaming wars evolve toward hybridized revenue streams, Tubi exemplifies the enduring viability of pure AVOD at massive scale. With over 100 million users, billions of streaming hours, and a profitable operation, it has redefined what free entertainment can achieve.
Looking ahead, continued emphasis on user-friendly ad experiences, content diversification, and technological innovation will likely sustain its upward trajectory. In an era of subscription fatigue, Tubi’s model not only endures but thrives, offering a blueprint for accessible, large-scale digital entertainment.
