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Fox: Tubi Saw Quarterly Ad Revenue Jump 25%, Viewership Grow 41% in December
February 8, 2023
Fox Corp. Feb. 8 reported that its Tubi branded ad-supported VOD and free ad-supported streaming TV platform saw second-quarter (ended Dec. 31, 2022) advertising revenue increase 25% compared with the previous-year period.
Tubi, which Fox acquired in 2020 for $440 million, is projected to generate upwards of $1 billion in ad revenue this year. December recorded the highest-ever user trends for the platform, according to Fox CEO Lachlan Murdoch.
“We have seen increases in almost every [key performance indicator]. including [cost per thousand], TVT and engagement,” Murdoch said on the fiscal call. “When we look at these metrics, there’s a ripeness for very significant revenue growth.”
Murdoch, who has lobbied for AVOD/FAST over SVOD since Fox sold its motion picture assets to Disney, said content creators from the big studios to independents are working with Tubi to create incremental revenue opportunities on new and catalog content.
Warner Bros. Discovery recently inked license deals for myriad shows with Tubi and The Roku Channel.
“All the major studios continue to work with us. We’re seeing a benefit of people realizing that their deep [content] libraries…we can help them monetize those libraries,” he said. “Which is why Tubi has the biggest library in movie and TV streaming.”
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At the same time, Fox recently renewed content license deals with previously-owned Hulu. Murdoch hailed the renewal as further proof of an ongoing “symbiotic’ relationship between Fox and Disney-controlled Hulu.
“As more of our [Fox] viewers watch content on a catch-up basis, we’re not monetizing our hit shows in the first window [live plus same-day] like we used to, so by being to capture viewer engagement after [that window] is critically important. And the Hulu deal allows us to do that.”
Murdoch said the agreement enables Hulu to piggyback on the marketing Fox employs on it s programming by streaming content the next day.
“So, it works very well for Hulu and it works very well for us,” he said.