How Does Tubi Make Money? The Hidden Truth About Free Streaming [2025]

With $900 million in revenue last year despite charging viewers absolutely nothing, Tubi has cracked the code on free streaming success. The platform's revenue engine is refreshingly straightforward: advertising.

Unlike Netflix, Disney+ and other subscription-based giants, Tubi operates on a purely ad-supported model that's proving remarkably effective. The platform has attracted over 80 million monthly active users who access a massive library containing more than 250,000 TV episodes and movies. Perhaps most impressively, Tubi has surpassed several premium subscription services—including Peacock, Max and Apple TV+—in total viewing time.

Though generating substantial revenue, Tubi isn't profitable yet. This appears to be deliberate, as executives have prioritized expansion over immediate profits. The platform is on track to cross the $1 billion revenue milestone in coming quarters, a remarkable achievement since Fox Corporation acquired it for $440 million in 2020. Tubi's success largely stems from its viewer-friendly advertising approach, featuring just 4-6 minutes of ads per hour—dramatically less than traditional television's 16+ minute average.

This strategic balance raises several questions: How much do advertisers pay for Tubi placements? How does the platform maximize revenue without sacrificing user experience? What other revenue streams might Tubi be developing?

In this guide, we'll explore Tubi's business model, break down its revenue streams and examine how this completely free service has become a formidable competitor in the increasingly crowded streaming landscape.

How Tubi Makes Money: The Core Business Model

Tubi operates on a straightforward yet effective business model—providing viewers completely free access to its extensive content library while generating revenue exclusively through advertising. Unlike Netflix, Disney+ and other major platforms that rely on monthly subscription fees, Tubi has built its entire operation around strategically placed ad breaks during movies and TV shows.

Free streaming powered by ads

At the heart of Tubi's approach is a carefully designed ad implementation system featuring three main formats:

• Pre-roll ads: These play before content begins

• Mid-roll ads: Inserted at natural breaks during programming

• Banner ads: Displayed on the interface while users browse the library

What sets Tubi apart is its remarkably light ad load—just 4-6 minutes of advertisements per hour of viewing. This is substantially lower than other free ad-supported streaming TV (FAST) services, which typically run 8-9.5 minutes of ads hourly. The platform spaces these ads every 12-15 minutes, with three to five ads per pod.

This strategy gives advertisers "98%+ Viewability as verified by MOAT" while offering viewers a less disruptive experience than traditional television. Tubi also employs proprietary technology called Advanced Frequency Management (AFM) that helps marketers better control ad frequency, reaching more unique viewers without bombarding the same users repeatedly.

Why Tubi doesn't charge subscription fees

Tubi's commitment to remaining free is a deliberate market positioning decision. Their "Free for Everyone" campaign revealed a surprising insight—62% of consumers familiar with Tubi still didn't realize the service was completely free. The platform explicitly states they "never ask for any credit card information and have no way of charging you for anything, ever".

The service specifically targets demographics that subscription platforms often struggle to reach. About 75% of Tubi users live in households without cable television, with over 65% of their audience being "cordless"—a mix of cord-nevers and cord-cutters.

This strategy aligns perfectly with broader streaming industry realities. As one industry report notes, "subscriptions alone can't sustain unlimited growth, and not everyone has the disposable income to spend an extra USD 15.00 per month on streaming content". By embracing a free model, Tubi has positioned itself to capitalize on this growing segment of viewers.

Is Tubi profitable yet?

Tubi is not yet profitable—but this is by design. According to their CEO, "Our lack of profitability is a conscious choice". The platform generated approximately $900 million in revenue last year, up dramatically from just $150 million when Fox acquired it for $440 million in 2020.

Fox Corporation's CFO Steven Tomsic has confirmed Tubi is on track to generate $1 billion in the current fiscal year. However, he also disclosed that Tubi recorded a pre-tax loss of roughly $240 million in the last fiscal year.

The company's leadership has outlined a clear profitability timeline, stating they "will continue to invest in Tubi throughout this year and next before it reaches profitability". Unlike competitors slashing costs to achieve profitability, Tubi's executives emphasize expansion: "Our path to profitability shouldn't come from cutting costs. And, in fact, we are not cutting costs. We are growing our investment more".

This growth-first approach appears to be working—Tubi has now surpassed 81 million monthly active users and recently captured 2.1% of total TV viewing time according to Nielsen's The Gage.

Inside Tubi's Advertising Strategy

Tubi's ad strategy strikes a careful balance between viewer experience and revenue generation. The platform has developed sophisticated ad technologies that satisfy advertisers' needs without alienating users who expect an enjoyable viewing experience.

How Tubi implements ads across the platform

Tubi strategically employs three main ad formats throughout its platform:

Pre-roll ads appear before content starts playing and typically last 15-30 seconds. These ads capture viewer attention when engagement is highest—right before their selected content begins.

Mid-roll ads interrupt content at natural breaking points, similar to traditional TV commercials. Tubi carefully places these ads every 12-15 minutes, maintaining a lighter ad load than conventional television.

Banner ads display while users browse the interface, appearing on the home screen, category pages and search results. These non-intrusive ads create additional advertising space without disrupting the viewing experience.

The platform keeps ad frequency notably low, averaging just 4-6 minutes of ads per hour compared to traditional TV's 16+ minutes. Tubi also implements "ad pods"—groups of 3-5 commercials played consecutively during designated breaks—making the experience feel more organized and less disruptive for viewers.

The technology behind Tubi's targeted advertising

Tubi employs proprietary technology called Advanced Frequency Management (AFM) to optimize ad delivery. This system helps advertisers reach more unique viewers while preventing the same user from seeing identical ads repeatedly—a common complaint on other streaming platforms.

The platform collects first-party data from its 81+ million monthly active users to create targeted advertising opportunities.

With this information, advertisers can target specific:

• Demographics (age, gender, income level)

• Geographic locations down to zip code level

• Content category preferences (viewers who watch specific genres)

• Contextual moments alongside relevant content

By analyzing viewing patterns with machine learning algorithms, Tubi predicts user preferences to create more effective ad placements. This approach improves both advertiser ROI and viewer experience—a win-win that contributes to the platform's growing popularity.

Advertising costs on Tubi

Advertising on Tubi operates primarily on a CPM (cost per thousand impressions) model. Rates typically range from $25-$35 CPM, though premium placements or highly targeted campaigns may command higher rates.

The platform requires minimum campaign budgets starting around $25,000, positioning it for medium to large advertisers rather than small businesses.

Campaign costs vary based on several factors:

• Targeting specificity (more targeted = higher CPM)

• Ad format and placement (pre-roll generally costs more than banner ads)

• Seasonality (Q4 holiday season demands premium pricing)

• Content categories (popular genres command higher rates)

For major brands seeking extensive reach, comprehensive campaigns on Tubi can range from $100,000 to several million dollars depending on scope and duration.

How Tubi shares revenue with content partners

Tubi operates on a revenue-sharing model with its content providers. Under this arrangement, content owners receive a percentage of advertising revenue generated by their titles. The specific revenue split varies by partner and content popularity.

Major studios and networks typically negotiate more favorable terms, often receiving 50-60% of ad revenue generated by their content. Independent creators and smaller studios might receive 40-50% of the ad revenue their content generates.

The platform's Content Acquisition team continually evaluates performance metrics to determine content value. Content that drives higher engagement and longer viewing sessions generally earns better revenue-sharing terms.

This approach allows Tubi to maintain its extensive library of 250,000+ titles without the massive upfront costs of exclusive content rights that burden subscription services. The strategy creates a mutually beneficial ecosystem where content owners monetize their back catalogs while Tubi expands its offering without charging viewers.

Tubi's Revenue Growth Story

Tubi's revenue has skyrocketed from modest beginnings to an impressive $900 million in 2023, with nearly all income flowing from advertisements played before and during content. This remarkable financial trajectory demonstrates how free, ad-supported streaming can thrive in today's competitive entertainment landscape.

Tubi's annual revenue explosion

The platform's financial growth tells a compelling success story. Starting from just $150 million in 2019, Tubi's revenue climbed steadily to $250 million in 2020 and $380 million in 2021, before jumping significantly to $775 million in 2022. Revenue then increased further to $900 million in 2023, showcasing strong year-over-year performance.

Fox Corporation's CFO Steve Tomsic has highlighted Tubi's accelerating quarterly growth—increasing from 19% to 31%. The platform is now projected to cross the coveted $1 billion revenue milestone in fiscal year 2025, a remarkable achievement for a service acquired for just $440 million five years ago.

How Tubi stacks up against competitors

In the crowded streaming marketplace, Tubi has emerged as a frontrunner in the AVOD (advertising-based video on demand) sector. The platform secured 1.8% of household TV market share in October—outperforming several subscription-based rivals including Peacock (1.3%), Max, Paramount+ (1.2%), and fellow free service Pluto TV (0.8%).

Among free streaming platforms, Tubi now ranks second only to YouTube, averaging 1 million viewers in May. This performance has positioned Tubi as the cornerstone of Fox's digital strategy, particularly as it continues outpacing other FAST (Free Ad-Supported TV) services in both viewership and revenue growth.

The Fox acquisition effect

Fox Corporation's 2020 acquisition for $440 million marked a turning point in Tubi's development. Under Fox's ownership, Tubi's revenue has multiplied sixfold—from approximately $150 million at acquisition to nearly $1 billion today.

The acquisition brought multiple advantages: additional financial resources, enhanced negotiating power for content deals with major studios, and strategic additions to the content library. Fox further strengthened Tubi's offerings by acquiring MarVista Entertainment in 2021 specifically to bolster the platform's content.

Despite this impressive revenue growth, Tubi recorded a pre-tax loss of approximately $240 million in the last fiscal year. Fox executives have consistently framed this as a deliberate investment strategy, emphasizing that they "see Tubi as an enormous growing asset" rather than focusing on immediate profitability.

Fox recently announced the formation of Tubi Media Group, further cementing the platform's position as the centerpiece of Fox's streaming strategy and signaling long-term commitment to its growth.

How Tubi Makes Money: The Core Business Model

Tubi generates revenue through an advertising-based model that offers viewers completely free access to its massive content library. Unlike streaming platforms that rely on monthly subscriptions, Tubi has built its entire business around strategic ad placement during movies and TV shows.

Free streaming powered by ads

At the heart of Tubi's business model is a carefully designed advertising system.

The platform implements three distinct ad types:

• Pre-roll ads: These appear before content begins playing

• Mid-roll ads: Inserted during natural breaks in programming

• Banner ads: Displayed on the interface while users browse content

What sets Tubi apart is its viewer-friendly approach to ad frequency. The platform shows only 4-6 minutes of advertisements per hour—substantially lower than the industry average for free ad-supported streaming TV (FAST) services, which typically run 8-9.5 ad minutes per hour. Ads appear every 12-15 minutes with three to five ads per pod.

This balanced approach gives advertisers "98%+ Viewability as verified by MOAT" while providing viewers a significantly less intrusive experience than traditional television. Tubi also employs proprietary technology called Advanced Frequency Management (AFM) that helps marketers manage ad frequency more effectively, reaching more viewers without overwhelming them with repetitive ads.

Why Tubi doesn't charge subscription fees

Tubi's commitment to remaining free stems from strategic market positioning. According to their "Free for Everyone" campaign, a surprising 62% of consumers familiar with Tubi still didn't know the service was completely free. The platform explicitly states they "never ask for any credit card information and have no way of charging you for anything, ever."

The strategy targets specific demographics that many subscription services struggle to reach:

• Approximately 75% of Tubi users live in households without cable television

• Over 65% of their audience is "cordless"—consisting of cord-nevers and cord-cutters

This approach aligns with broader streaming industry trends. As one industry report notes, "subscriptions alone can't sustain unlimited growth, and not everyone has the disposable income to spend an extra USD 15.00 per month on streaming content." By embracing a free model, Tubi has positioned itself to capitalize on this reality.

Is Tubi profitable yet?

Currently, Tubi is not profitable—but this appears to be intentional. According to their CEO, "Our lack of profitability is a conscious choice." The platform generated an estimated $900 million in revenue over the last year, up from just $150 million when Fox acquired it for $440 million in 2020.

Fox Corporation's CFO Steven Tomsic confirmed Tubi is on track to generate $1 billion in current fiscal-year revenue. However, he also disclosed that Tubi recorded a pre-tax loss of approximately $240 million in the last fiscal year.

The company has outlined a clear timeline for profitability. Executives have stated they "will continue to invest in Tubi throughout this year and next before it reaches profitability." Unlike some competitors who are cutting costs to achieve profitability, Tubi's leadership emphasizes growth: "Our path to profitability shouldn't come from cutting costs. And, in fact, we are not cutting costs. We are growing our investment more."

This growth-first strategy appears to be working—Tubi has surpassed 81 million monthly active users and recently reached 2.1% of total TV viewing time according to Nielsen's The Gage.

Tubi's Content and Audience Strategy

Tubi's content and audience approach differs markedly from subscription services, targeting underserved viewers with a diverse library rather than chasing expensive premium content. This deliberate strategy allows the platform to expand its audience reach while keeping content acquisition costs manageable—directly fueling its advertising revenue model.

Serving niche audiences with diverse content

Unlike Netflix or Disney+ that compete for blockbuster exclusives, Tubi deliberately acquires content that appeals to specific demographic groups often overlooked by subscription giants. The platform's massive library of over 250,000 movie and TV titles includes many that aren't available on major subscription platforms.

Tubi strategically focuses on content across varied genres including:

• Anime

• Black cinema

• Horror films

• LGBTQ+ programming

• International titles

This approach has yielded impressive results. Tubi users collectively watch over 5 billion minutes of content monthly, with approximately 75% of viewers not reached by traditional cable TV networks. This "unreachable" audience represents significant value to advertisers seeking to connect with cord-cutters and cord-nevers.

Tubi Originals and low-cost production

While Disney+ and Netflix pour billions into original content, Tubi has adopted a more measured, cost-efficient approach. The platform launched Tubi Originals in 2021, producing content at significantly lower budgets—often partnering with MarVista Entertainment (acquired by Fox specifically to bolster Tubi's content production).

This strategic restraint enables Tubi to create targeted content that fills specific library gaps without the massive production expenses burdening subscription services. The platform primarily produces original films in popular genres like thrillers, horror and romance, where production costs remain reasonable while still attracting significant viewership.

For example, Tubi's original films like "Corrective Measures" and "Harland Manor" achieved strong viewing numbers despite modest budgets compared to streaming giants' productions. This approach supports Fox executives' vision of growing Tubi's value without the enormous content investments that have pushed many subscription services into financial difficulties.

User engagement and personalization

Tubi's sophisticated personalization engine significantly drives viewer engagement through intelligent content recommendations. The platform analyzes viewing patterns to suggest relevant content, increasing watch time and, correspondingly, ad exposure.

The technology creates what Tubi calls "personalized linear channels" that function like traditional TV channels but with content tailored to individual preferences. For users accustomed to the lean-back TV experience, these channels provide familiarity while still delivering personalized content.

Tubi has also implemented features that make content discovery easier:

• "Resume Watching" sections

• Personalized category rows

• Genre-specific recommendation algorithms

• Smart search functionality

These engagement tools keep viewers on the platform longer, directly increasing the number of ads they encounter and boosting Tubi's revenue potential. According to platform data, personalized recommendations have increased average session duration by over 30%, creating additional advertising inventory without requiring more content.

Tubi has built a $900 million revenue engine through advertising, with projections to exceed the $1 billion milestone in 2025. While completely free to viewers, the platform has crafted a sustainable business model that carefully balances advertiser needs with viewer experience.

The key to this balance? A strategic approach of just 4-6 minutes of ads per hour—dramatically less than traditional TV's 16+ minutes—which keeps viewers engaged while delivering impressive value to advertisers.

Beyond standard advertising, Tubi has expanded its revenue streams through several complementary channels. Specialized brand integrations like Tubi Wrappers allow advertisers to create immersive experiences, while partnerships with technology providers like Amazon DSP and Moloco open additional monetization avenues.

Meanwhile, the platform's sophisticated data capabilities enable premium targeting opportunities that command higher rates from advertisers seeking specific audience segments.

The platform's transformation since Fox Corporation's $440 million acquisition in 2020 has been remarkable. From a modest streaming service generating $150 million annually, Tubi has evolved into a major industry player that outperforms subscription giants including Peacock, Max and Paramount+ in total viewing time.

This success stems directly from Tubi's strategic approach of targeting underserved demographics with diverse content rather than investing in expensive premium productions that burden many subscription services.

Tubi's deliberate choice to prioritize growth over immediate profitability has yielded impressive results. Despite recording a pre-tax loss of approximately $240 million last fiscal year, the platform has expanded its monthly active user base to over 81 million while multiplying its revenue sixfold since acquisition. Tubi executives have articulated a clear path to profitability focused on continued expansion rather than cost-cutting—a strategy that appears to be working.

The platform's success challenges conventional wisdom about streaming economics. Tubi has demonstrated that free, ad-supported streaming can thrive alongside subscription services in an increasingly fragmented entertainment landscape. As consumers grow tired of managing multiple subscription payments,

Tubi's completely free model offers a compelling alternative that resonates particularly well with cord-cutters and budget-conscious viewers—precisely the audiences many traditional media companies struggle to reach.

FAQs

Q1. How does Tubi generate revenue without charging subscription fees?

Tubi generates revenue primarily through advertising. The platform displays pre-roll, mid-roll, and banner ads during content streaming, maintaining a lighter ad load of 4-6 minutes per hour compared to traditional TV.

Q2. Is Tubi currently profitable?

While Tubi is not yet profitable, this is a strategic choice. The platform is prioritizing growth over immediate profits, with revenue expected to cross $1 billion in the coming quarters. Fox Corporation, which acquired Tubi in 2020, continues to invest in its growth.

Q3. How does Tubi's advertising strategy work?

Tubi uses Advanced Frequency Management (AFM) technology to optimize ad delivery. The platform collects first-party data from its users to create targeted advertising opportunities, allowing advertisers to reach specific demographics and interests while maintaining a balance between user experience and revenue generation.

Q4. What types of content does Tubi offer?

Tubi offers a diverse library of over 250,000 TV episodes and movies, focusing on niche audiences with content across various genres. The platform also produces Tubi Originals, creating targeted content to fill specific gaps in their library at lower production costs.

Q5. How does Tubi compare to other streaming services in terms of viewership?

Tubi has shown impressive growth, outperforming several major subscription services in total viewing time. With over 81 million monthly active users, Tubi has reached 2.1% of total TV viewing time according to Nielsen's The Gage, positioning itself as a significant player in the streaming landscape.