Free streaming video service Tubi TV just got a big boost to their bottom line, to the tune of $20 million in new investments. The influx of cash comes at a time when investors believe the next hit streaming service won’t be a monthly fee based Netflix competitor, but a free service supported by ads.
Tubi TV launched back in 2014, and has millions of customers today. They work with over 200 content partners, including MGM, Paramount, Lionsgate, Starz and more, to provide a catalog that’s more than 50,000 titles strong. Tubi may not have the most popular or the latest releases, but they do have a number of big hits from years gone by. Tubi’s selection is rotated over time to make sure it doesn’t feel stale.
The service also partners with niche studios from around the world to provide content like anime, international films and television from Korea, China, and the UK, sci-fi, fantasy, and more.
It may seem a bit strange that the target audience for this service is millennials, but remember that while these aren’t new movies, they’re very likely new to viewers. And plenty of movies from the 80s, 90s, and beyond hold up just fine over time. And when you consider a recent Nielsen study that showed millennials are just fine watching ads if the content is free, it sounds like the perfect marriage.
The number of ads on Tubi is actually slightly less than what would normally be on television. Founder and CEO Farhad Massoudi recently said the service shows about 4 to 5 minutes of commercials for every 30 minutes of content.
As far as their new cash is concerned, Tubi plans to use it for hiring engineers, product managers and data scientists to scale bigger. It will also pay for marketing and analytics to understand what people want to watch.
Tubi TV is available just about any platforms, including a mobile app, game consoles, streaming sticks or boxes, smart TVs, and their web site.