Tubi makes money by running advertisements. Ad is shown when switching between content or within the video.
Every movie and show on the Tubi OTT platform includes advertising. Every twelve to fifteen minutes, there is a commercial break.
With 3 to 5 ads per break, they put 4 to 6 minutes of ads per hour of viewing which means each break lasts up to 1 to 1 and half minutes.
As of 2023, Tubi's platform had more than 64 million active users who watched more than 3.6 billion hours of content.
And all of those hours spent watching content resulted in more people seeing their commercial ads, which increases ad revenues.
Each and every movie's cost of advertising is determined by its genre, popularity, audience reach, and number of ad clicks.
Also, the actual revenue share between Tubi TV and the firm it licensed is not known as they have not made their revenue source public.
Reportedly, YouTube creators receive 55 percent of total revenue while YouTube receives the remaining 45 percent.
Additionally, Tubi has its own ad sales team and collaborates with Yahoo's demand-side platform to sell advertising space.
Tubi streaming channel was acquired by Fox Entertainment in 2020 with an estimated valuation of $490 million.
Per CNBC, Tubi helped boost Fox Entertainment's advertising revenue for earning its first fiscal quarter on November 2022.
The increase in revenue for Tubi was close to 30%, or about $165 million. Compared to the prior year, it was making progress.
Tubi has successfully evolved over the past few years into one of the trustworthy, free ad service channels with a wide range of content.
Before departing permanently from the OTT channel, Tubi's CEO Farhad Massoudi shared the latest Tubi Viewership statistics on his Twitter account.
With 1.3% of all television viewing in the US, Tubi has surpassed prestigious pay channels like HBO Max and Peacock.
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