What's Happening?
Tubi, an ad-supported video on demand (AVOD) service, is planning to become self-sufficient by the end of the year and establish itself as a leading free streaming service in Australia. News Corp Australia's sales chief Lou Barrett and Tubi's international markets boss David Salmon are optimistic about Tubi's growth potential in the Australian market, aiming to replicate its success in North America. Tubi has seen a 30% increase in viewing hours since March, driven by strategic marketing and increased investment in licensed and original programming. The service is targeting significant market penetration, similar to its reach in the U.S. and Canada, where it is watched by millions.
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Why It's Important?
The expansion of Tubi in Australia represents a significant shift in the streaming landscape, offering advertisers a new platform to reach audiences through connected TV. As Tubi aims to become a category leader, it challenges existing subscription-based services like Netflix and Amazon Prime Video. This move could lead to increased competition, potentially driving innovation and better pricing for consumers. For advertisers, Tubi's integration with News Corp's audience intelligence platform offers enhanced targeting capabilities, promising incremental reach and engagement. The success of Tubi's model could influence other markets and streaming services to adopt similar strategies.
What's Next?
Tubi plans to continue scaling its operations and negotiating with media agency partners for the 2026 calendar year. The focus will be on maintaining growth momentum and expanding its viewer base in Australia. News Corp's upcoming negotiations and marketing strategies will play a crucial role in Tubi's future success. The company aims to become a regular choice for advertisers on connected TV, leveraging its unique free offering and low ad load. As Tubi continues to grow, it may explore further international expansion and partnerships to solidify its position in the global streaming market.
Beyond the Headlines
Tubi's growth strategy highlights the evolving nature of media consumption, where free, ad-supported models are gaining traction. This shift could have broader implications for the streaming industry, potentially leading to more diverse content offerings and accessibility for viewers. The integration of advanced audience intelligence tools also raises questions about privacy and data usage, as advertisers seek more precise targeting. Tubi's approach may set a precedent for balancing viewer experience with advertising effectiveness, influencing future developments in digital media and advertising.
