Why Tubi CEO Anjali Sud thinks free TV can win again
Jun 17, 2024
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Anjali Sud, CEO of Tubi—a fast-growing free streaming platform—discusses how Tubi stands out in a competitive streaming landscape. She explains why increasing subscription costs make free options appealing. Sud elaborates on Tubi's ad-supported model and its innovative strategies to engage audiences, including partnerships with TikTok creators. She also highlights the importance of quick decision-making in content strategy and Tubi's unique position as a Fox subsidiary, balancing startup culture with resource advantages.
Tubi's free ad-supported model attracts viewers amidst rising subscription costs in the streaming landscape.
Tubi leverages data insights for personalized recommendations and viewer engagement through diverse content offerings.
Tubi's revenue model involves partnerships and revenue-sharing agreements to reach a broad audience base and ensure sustainable growth.
Deep dives
Unique Business Model of Tubi in the Streaming Industry
Tubi, a rapidly growing streaming TV platform, has differentiated itself by offering a free service supported by advertisements, in contrast to subscription-based models. By licensing existing content and making it available for free, Tubi attracts viewers amidst the highly competitive streaming landscape. Its focus on audience experience, with over 250,000 movies and TV episodes in its library, positions Tubi as a hybrid of Netflix and YouTube, catering to a wide array of viewer preferences and engaging younger audiences.
Strategic Growth and Audience Engagement Approach of Tubi
Tubi's approach to growth involves appealing to audience preferences for free and easily accessible content, amid rising subscription costs in the industry. By offering a vast library of content and personalized recommendations, Tubi aims to keep viewers engaged through a seamless and diversified viewing experience. Leveraging data-driven insights and machine learning algorithms, Tubi enhances viewer engagement with a variety of content, fostering repeat viewership and creating a unique entertainment ecosystem.
Navigating Partnerships and Revenue Models in the Streaming Ecosystem
Tubi's revenue model involves a variety of partnerships and revenue-sharing agreements with content creators, studios, and streaming platforms. The platform's willingness to collaborate across different streaming operating systems and negotiate revenue splits aligns with its goal of reaching a broad audience base. By focusing on viewer-centric strategies, content diversity, and fair value-sharing, Tubi navigates the complexities of the streaming industry to maintain competitiveness and ensure sustainable growth.
Competition and Fragmentation in the TV Market
In the podcast episode, it is discussed how the TV market differs from the smartphone market in terms of competition and fragmentation. Unlike the two dominant players in the smartphone market, the TV market involves various players at different layers, leading to a more competitive landscape. The speaker mentions the potential for consolidation in the TV space due to the significant fragmentation, presenting unique challenges. Despite the presence of open access and competition, there is a prediction of some consolidation in the future, indicating a shift in the TV ecosystem.
Advertiser Engagement and AI in Streaming Platforms
The podcast episode delves into the role of AI and targeting in advertising on streaming platforms like Tubi. The speaker emphasizes the importance of creating an ecosystem that benefits advertisers, viewers, and creators. By leveraging AI capabilities, platforms can lower barriers for advertisers, especially smaller businesses, to create effective ads. The discussion involves considerations about competing with AI-driven platforms like TikTok and exploring opportunities for brand integrations into storytelling to enhance the viewer experience. Additionally, the focus is on building trust with creators by offering sustainable economics and transparent engagement metrics to align incentives and ultimately expand the value created.
Tubi is a free and very rapidly growing streaming TV platform — according to Nielsen, it had an average of a million viewers watching every minute in May 2024, beating out Disney Plus, Max, Peacock, and basically everything else, save Netflix and YouTube. All those streaming service price hikes are driving people to free options, and Tubi is right there to catch them.
CEO Anjali Sud joins Decoder to explain why she thinks Tubi's model "could be" profitable, and how Tubi competes not only against the premium streamers, but also against the big competitors for viewers' time: TikTok and Youtube.
