Tubi reaches 64 million monthly active users as ad-supported streaming grows • businessupdates.org

by Ana Lopez

Fox’s free ad-supported streaming TV service (FAST), Tubi, reached 64 million monthly active users, the company announced today. The last time the company reported its subscriber base was in May 2022, when Tubi had 51 million. When Fox bought the streaming service in 2020, Tubi had 25 million monthly active users.

Fox recently published quarterly figures, which showed significant growth in viewership at Tubi. Total watch time was up 44% year-over-year, with more than five billion hours streamed by 2022. Tubi viewership is likely to grow even more since the streamer signed a deal with Warner Bros. Discovery, gaining over 2,000 hours of WB – branded content.

Tubi claims to have the largest free streaming content catalog, with over 50,000 titles and over 200 live TV channels.

The latest monthly active user count was reported alongside Fox’s annual research report,”The Stream 2023: actionable audience insights for brands”, which shows that there is more interest in cheaper, ad-supported subscriptions. The company predicted that by 2024, one in three American consumers would be streaming AVOD. This is likely due to video-on-demand (SVOD) subscription services increasing their prices. Netflix and Disney+ were the most recent SVOD streamers to launch ad levels.

AVOD growth is estimated to increase by 9% in 2023 and 24% between 2022 and 2026 overall, Fox predicts. Meanwhile, SVOD’s growth will remain “relatively flat,” the company wrote.

“As subscription costs continue to rise, nearly one in three streamers plan to reduce their streaming service spending this year.” said Mark Rotblat, chief revenue officer at Tubi, said in a statement.

The report also stated that Tubi content was viewed by one in five ad-supported video-on-demand (AVOD) subscribers in the past year.

It’s pretty easy to see why AVOD services — especially free services — are getting more affordable the closer they get to the cable experience, without long-term contracts or high fees. Sixty-three percent of respondents said free AVOD services are attractive because they typically offer more flexibility than cable and satellite TV and provide a more customized viewing experience.

Also, 45% of respondents said they like streaming services with fewer ads. Tubi may have one of the lightest ad loads in AVOD services, citing between four and six minutes ads per hour. However, the report found that less than one in five customers are still dissatisfied with the length of commercial breaks on Tubi, but still prefer lighter commercial loads compared to traditional TV, which is around nine or ten minutes long.

In comparison, Peacock makes the ad load about five minutes per hour. Disney +, Netflix and HBO Max aim for about four minutes.

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