Tubi makes money through advertising. It’s a free, ad-supported streaming service — viewers pay nothing, and Tubi earns revenue by showing ads before and during content. That’s the entire model in a nutshell.
But there’s more to unpack about why this works and whether it’s actually profitable.
Tubi’s Core Revenue Model: Advertising
Tubi operates as an AVOD (advertising-based video on demand) platform. Every dollar it earns comes from advertisers paying to reach its audience. There are no subscription tiers, no premium plans, no pay-per-view options. It’s completely free for viewers.
The ad experience is relatively light compared to traditional television. Tubi runs approximately 4 to 6 minutes of ads per hour, compared to the 13 to 18 minutes typical of cable TV. That lower ad load is a deliberate strategy — it keeps viewers watching longer, which generates more total ad impressions over time.
Advertisers pay Tubi based on CPM (cost per thousand impressions). The more viewers Tubi attracts, and the longer they watch, the more ad inventory the platform can sell. It’s a volume game, and Tubi has been winning it.
| Revenue Metric | Figure |
| Estimated 2023 Revenue | ~$900 million |
| Estimated 2020 Revenue (at acquisition) | ~$150 million |
| Revenue Growth Since Acquisition | ~6x increase |
| Monthly Active Users (2024) | ~80 million+ |
| Ad Load Per Hour | ~4–6 minutes |
Who Owns Tubi?
Fox Corporation acquired Tubi in 2020 for $440 million. Under Fox’s ownership, Tubi’s revenue has grown roughly sixfold, from around $150 million at the time of acquisition to approximately $900 million by 2023. Fox CEO Lachlan Murdoch has reportedly turned down a $2 billion offer for the platform, according to industry reporting from The New York Times.
The acquisition gave Tubi access to Fox’s advertising infrastructure, content relationships, and broader distribution channels. In return, Fox got a digital streaming asset that complements its traditional broadcast business — something most legacy media companies have struggled to build organically.
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How Tubi Keeps Content Costs Low
One of the biggest reasons Tubi’s model works is its approach to content. Unlike Netflix or Disney+, which spend billions on original programming, Tubi primarily licenses older movies and TV shows from studios at relatively low cost.
The library includes over 35,000 titles from partners like Lionsgate, MGM, and Paramount. Most of this content isn’t the latest blockbuster — it’s catalog titles, cult classics, independent films, and older TV series. But that turns out to be exactly what a large audience wants when the price is free.
Tubi has started producing some original content through initiatives like “Stubios,” a fan-fueled studio where creators pitch projects directly. But these investments are modest compared to what subscription-driven platforms spend. The strategy is intentionally asset-light.
Is Tubi Actually Profitable?
Not yet — and its CEO has been surprisingly open about that. Tubi CEO Anjali Sud has publicly stated that their lack of profitability is a deliberate strategic choice. Fox Corporation’s CFO Steven Tomsic disclosed that Tubi recorded a pre-tax loss of roughly $240 million in a recent fiscal year.
The logic is straightforward: Tubi is prioritizing growth over profit right now. By keeping the service free and investing in content and user acquisition, the company is building the largest possible audience. The bet is that once the audience is large enough and the ad infrastructure is mature, profitability will follow naturally.
Whether that bet pays off remains an open question. Disney+ only recently turned a quarterly profit — and that took years and billions in investment. Tubi’s path is arguably simpler since it doesn’t carry the same content production costs, but $240 million in annual losses is still a substantial figure, as reported by CNBC when covering broader streaming profitability trends.
Who Watches Tubi?
Tubi’s audience skews toward demographics that many subscription services struggle to reach. According to the company, approximately 65% of its viewers are cord-cutters or cord-nevers — people who have either cancelled cable or never had it. About 75% of users live in households without cable television.
This makes Tubi particularly attractive to advertisers targeting younger, budget-conscious viewers who can’t be reached through traditional television channels. It’s also why the platform has seen strong growth among Gen Z and millennial audiences.
Tubi reported over 80 million monthly active users by mid-2024, and by early 2025 that figure had climbed to approximately 97 million. For a free service, that’s a massive audience — and it rivals or exceeds several paid streaming platforms including Peacock and Paramount+.
How Tubi Compares to Other Free Streamers
Tubi isn’t the only free streaming platform. Pluto TV (owned by Paramount), The Roku Channel, and Amazon’s Freevee (now folded into Prime Video) all operate in the FAST space. But Tubi has consistently outperformed most of them in total viewing hours and monthly active users.
What sets Tubi apart is its focus on on-demand viewing rather than lean-back linear channels. While Pluto TV emphasizes curated channel-style programming, Tubi lets users browse and choose specific titles, which tends to drive longer viewing sessions and higher engagement.
Conclusion
Tubi makes money through advertising — that’s it. The free streaming model generates close to $1 billion in annual revenue but isn’t yet profitable, with Fox Corporation betting on continued audience growth to eventually deliver returns.
Frequently Asked Questions
Is Tubi really free?
Yes. Tubi is 100% free for viewers. There are no subscription fees. Revenue comes entirely from advertising shown before and during content.
Who owns Tubi?
Fox Corporation acquired Tubi in 2020 for $440 million. The platform operates as a subsidiary of Fox.
How much revenue does Tubi generate?
Tubi generated an estimated $900 million in revenue in 2023, with projections suggesting it was approaching $1 billion by 2024.
Why isn’t Tubi profitable?
Tubi’s CEO has called its lack of profitability “a conscious choice,” prioritizing audience growth and platform investment over near-term profits.
How many users does Tubi have?
Tubi reported approximately 80 million monthly active users in mid-2024, growing to roughly 97 million by early 2025.