Surprising fact: I learned that an AVOD startup sold for $440 million within six years, and that snapshot tells you how fast the streaming space can shift.
I want to show where this platform fits in the market and why its business model matters to people who watch free content. Launched in 2014 in San Francisco, the service grew from about 20,000 titles to over 35,000 across 250 partners.
The core idea is simple: the platform stays free by running ads with about four to six minutes per hour. That lighter ad load gives viewers a better experience than old linear TV while offering clearer ROI for advertisers.
In this piece I’ll walk you through access, ad placement, and the revenue split with content licensors. I’ll also explain what Fox’s acquisition unlocked and why that move reshaped the industry outlook.
Key Takeaways
- The AVOD business model funds free access through targeted ads.
- Lower ad load aims to balance viewer experience and ad ROI.
- Content scale and partner deals drive platform reach.
- Fox’s purchase accelerated distribution and sales power.
- This approach changes how streaming platforms compete in the market.
What Tubi Is and Why Its Free Streaming Model Works
Many people now prefer free streaming that pairs a big catalog with light ad breaks. I’ll explain why an ad-supported model sits comfortably beside subscriptions and why this setup appeals to cost-conscious viewers.
AVOD vs. SVOD: fitting into the streaming landscape
AVOD gives access without a subscription, using targeted advertising to fund the service. That lets users watch movies and shows for free while advertisers reach viewers at scale.
Subscription services still attract viewers who want ad-free time. But the two models coexist because people balance cost, choice, and convenience.
Scale and access: a large library across devices and markets
Launched in 2014, the platform expanded from about 20,000 titles to over 35,000 across 250 partners. The library spans 40+ categories and includes series and feature films that meet wide demand.
Availability on web, Android, iOS, Roku, Fire TV, Chromecast, Apple TV, and consoles makes starting a stream simple. The service works in the U.S., Canada, Mexico, Australia, and New Zealand.
The ad load averages four to six minutes per hour, which keeps commercials short while funding free access. That balance helps the platform win viewers, partners, and advertisers.
For more background on the platform’s history and growth, see Tubi on Wikipedia.
How does Tubi make money: Inside the advertising-driven revenue engine
The platform turns short ad breaks and precise targeting into predictable income. I’ll break down where commercials run, how long they last, and who gets paid.
Ad load and placement
About four to six minutes per hour of ads appears during viewing. That lighter load keeps the experience close to full-length movies and shows while still selling inventory to advertisers.
Spots run as mid-roll breaks and short transitions between titles. This mix balances viewer attention with steady revenue.
Measurement advantages
Digital tracking gives advertisers clearer ROI than linear TV. They can measure impressions, completions, and conversions tied to specific viewers and video placements.
Revenue split and sales
I’ve seen revenue split among the platform, Fox Corporation, and content partners vary by contract. Spots sell via a direct sales team and through Yahoo’s DSP.
“The lighter ad load improves viewing while preserving monetization for partners.”
| Channel | Ad Type | Typical minutes/hour | Primary beneficiaries |
|---|---|---|---|
| In-stream (mid-roll) | 30s-60s spots | 3–4 | Platform, licensors |
| Between titles | Short bumper ads | 1–2 | Advertisers, platform |
| Programmatic (DSP) | Targeted video | Varies | Advertisers, partners |
For a deeper look at the revenue breakdown, see my revenue breakdown.
How advertisers buy on Tubi and measure results
Advertisers have predictable routes to place spots and track returns. I map three practical buying paths and explain the tools that improve outcomes for brands and viewers.
Buying paths: direct sales, Fox bundles, and DSP access
Direct sales give brands premium placements with inventory reserved by the ad team.
Fox-bundled packages combine inventory across platforms and properties to amplify reach and lower CPMs.
DSP access via Yahoo lets buyers automate buys and target at scale while keeping programmatic flexibility.
Targeting and frequency tools that lift results
Advanced ad-tech manages frequency so viewers rarely see the same creative repeatedly. That protects campaign performance and improves the viewing experience.
Targeting mixes contextual signals with audience data to align content and creative. Advertisers measure impressions, completions, and conversions more cleanly than on linear TV.
“Better measurement turns into clearer revenue outcomes and stronger business cases for reinvestment.”
| Buying path | Strength | Best for |
|---|---|---|
| Direct sales | Premium placements, control | Brand campaigns |
| Fox-bundles | Extended reach, bundled pricing | Cross-platform scale |
| Programmatic (DSP) | Automation, precise targeting | Performance-driven buys |
How content partners and filmmakers get paid on an AVOD platform
Licensing deals are the backbone of this AVOD model, not expensive originals. Major studios like Lionsgate, MGM, and Paramount license catalogs that supply steady titles without large upfront production costs.
Licensing relationships with major studios and distributors
Studios provide proven movies and shows under contract terms that vary by title and window.
Independent distributors and aggregators—Filmhub among them—help indie filmmakers place work on the platform.
Revenue-sharing mechanics and CPM context for indie creators
Revenue flows back to rights holders via negotiated splits. Exact payouts depend on each agreement.
Industry estimates place AVOD CPMs around $7–$9 for some inventory, which gives creators a benchmark for expected revenue.
Discovery dynamics: why top titles drive outsized viewership
Viewership skews heavily: the top 10% of content often captures most streams.
That means visibility matters. I recommend creators optimize artwork, metadata, and category placement to increase discovery.
- Pipeline: Studio deals plus aggregators keep the catalog full.
- Revenue: Shared per contract, with CPMs as a useful guide.
- Discovery: Top performers get most attention; optimize to compete.
Tubi’s growth levers in a competitive streaming market
When Fox Corporation closed its March 2020 acquisition for $440 million, the platform gained scale and new selling power.
What the acquisition unlocked
Fox Corporation supplied deeper partnerships, access to owned shows, and bundled ad packages that attracted larger campaigns.
That move doubled the library, lifted viewership roughly 100% year over year, and helped the service report billions of streaming hours.
Expanding content and new verticals
The platform rolled out verticals like Tubi Kids and Tubi en Español, added selective original content in 2021, and introduced sports livestreaming from Fox Sports.
These steps broadened access for different viewers and gave advertisers targeted inventory across genres.
Ad-tech and frequency upgrades
I saw ad-tech improvements cut repeat exposure by managing frequency more tightly. That meant fewer repetitive ads and better campaign outcomes.
“Broader partnerships, smarter tech, and fresh content created a clear growth flywheel.”
- Partnerships: deeper Fox bundles expanded reach and revenue opportunities.
- Library growth: more titles and verticals improved discovery for viewers.
- Ad tech: frequency controls raised ad performance and viewer satisfaction.
For an in-depth look at content deals and acquisition strategy, see my piece on content acquisition strategy.
Conclusion
I’ll wrap up with a simple view: this content platform funds free access by selling short, targeted ads while keeping the viewing experience light.
The result: users watch video and shows and movies for no subscription fee, brands buy inventory directly or through Yahoo’s DSP, and partners share revenue based on performance.
The Fox acquisition accelerated library growth, stronger sales bundles, and better ad-tech. That boosted reach across devices and regions and helped the platform serve user demand alongside subscription services.
My takeaway: when discovery, measurement, and frequency controls work together, the streaming platform sustains quality for viewers and a reliable path for partners to earn money.
FAQ
What is Tubi and why is its free, ad-supported model popular?
I view Tubi as an AVOD streaming service that offers tens of thousands of movies and shows across devices. Its no-subscription access appeals to budget-conscious viewers and cord-cutters who tolerate short commercial breaks in exchange for free content. The wide library and easy device support boost reach and time spent, which advertisers value.
How does Tubi’s AVOD approach compare with subscription services?
I see AVOD as complementary to SVOD. Instead of charging viewers, the platform sells ad inventory to brands. That lowers friction for users and expands audience scale, while subscription rivals focus on recurring fees and fewer or no ads. Each model fits different viewer preferences and advertiser goals.
How large is Tubi’s content library and where is it available?
I track the library at roughly 20,000–35,000 titles, including movies, series, and niche verticals. The service runs on major smart TVs, streaming devices, mobile apps, and web browsers, primarily in the U.S. with growing international availability.
What kind of ad load can viewers expect?
I typically see an ad load of about four to six minutes of commercials per hour of viewing. Ads appear as in-stream breaks and short transitions between programs to balance revenue generation with a tolerable viewer experience.
Where do ads appear during viewing?
I notice ads placed as pre-rolls, mid-rolls, and short bumpers between episodes or movies. Placement aims to mirror linear TV rhythms while using digital targeting to keep spots relevant and measurable.
How is performance measured on Tubi compared to linear TV?
I find digital measurement offers clearer attribution, impression-level tracking, and audience segmentation. That allows advertisers to evaluate ROI and fine-tune campaigns more precisely than with traditional linear metrics.
How are ad revenues shared among Tubi, Fox, and content partners?
I understand revenues split via contracts: Fox Corporation (which acquired the platform) takes a portion for platform operations and ad sales, while content partners receive licensing fees or revenue share based on viewing and agreed CPMs. Exact splits depend on deals with studios and independent creators.
How can advertisers buy inventory on the platform?
I’ve seen three main buying paths: direct deals with the platform’s sales team, bundled opportunities through Fox’s broader ad packages, and programmatic access via demand-side platforms (DSPs) for targeted buys.
What targeting and frequency controls are available for campaigns?
I use audience targeting, geo and device filters, and frequency caps to limit repeat exposure. These tools help maintain a better viewer experience while improving ad efficiency for brands.
How do studios and filmmakers earn from their content on AVOD platforms?
I know studios like Lionsgate, MGM, and Paramount license catalogs for upfront fees or revenue-share deals. Independent filmmakers often negotiate CPM-based shares or flat licensing terms, with payments tied to viewership and ad performance.
Why do a few top titles drive most viewership?
I observe that discovery and recommendation algorithms concentrate attention on proven hits. Popular titles attract higher ad rates and bring new users, creating a feedback loop where top content generates outsized minutes and ad revenue.
What did Fox Corporation’s 0 million acquisition in March 2020 enable?
I view the acquisition as a growth catalyst that brought deeper ad-sales integration, access to Fox’s sales teams and data, and capital to expand the library and invest in ad technology and content initiatives.
How is the platform expanding beyond licensed content?
I see moves into original programming and new verticals to diversify the catalog. Originals can improve retention and differentiate the service, while targeted channels and genre hubs help surface niche content more effectively.
What ad-tech upgrades has the platform implemented?
I’ve noticed investments in advanced frequency management, programmatic capabilities, and measurement tools. These upgrades reduce repeat ad fatigue and raise advertiser confidence by improving targeting and reporting.
