Tubi, the free advertising-supported streaming service owned by Fox Corporation, has officially launched in the UK. The service, which boasts nearly 80 million monthly active users and is the fastest growing streaming service in the US, promises British viewers access to over 20,000 movies and TV episodes on demand. This includes content from all of the major Hollywood studios, as well as a “robust slate” of exclusive original programming.
The UK market is already crowded with streaming services such as Netflix, Amazon Prime Video, Disney+, and Apple TV, but Tubi is confident that it can stand out among the competition. This includes Sky, the parent company of Sky News, which offers its own streaming service called Now TV and a service called Sky Stream that allows customers to view content from various streaming platforms all in one place. The UK market also includes streaming platforms from traditional terrestrial TV broadcasters such as the BBC, ITV, Channel 4, and Channel 5, who have recently teamed up to launch a new service called Freely.
Tubi’s entry into the UK market has raised some eyebrows, as the market is seemingly saturated and production costs are rising. However, the service has already proven to be a successful competitor in the US, surpassing other streaming services in terms of viewership. Anjali Sud, chief executive of Tubi, stated that the company has spent the last decade perfecting its approach to free streaming in North America and believes now is the perfect time to bring that same recipe to UK audiences.
Tubi was acquired by Fox in 2020 for $440 million and is one of the company’s fastest-growing businesses. Lachlan Murdoch, Fox’s executive chair and chief executive, reportedly turned down an offer of $2 billion for the service last year. In May, Tubi achieved record audiences in the US, beating out other streaming services such as Disney+ and Peacock, as well as free rivals like Roku and Pluto TV.
There are specific reasons why Tubi, which is currently available in the US, Canada, Mexico, Australia, New Zealand, and several Central American countries, has chosen to target the UK market. The first reason is regulation, as Tubi was previously available in the UK and Europe until 2018 when it was forced to withdraw due to the EU’s General Data Protection Regulations (GDPR). Now that the UK has left the EU, Tubi is able to return to the market.
The second reason is the potential for growth in the UK market, particularly among younger audiences and ethnic minorities. Tubi believes there is a gap in the market for content that caters to these demographics, which are not sufficiently served by traditional broadcasters like the BBC and ITV. Tubi’s chief executive Anjali Sud stated that there has been a focus on mass appeal in the UK, but the country’s diverse population has a wide range of tastes and perspectives that are not being addressed.
Tubi is confident that it can replicate its success in the US in the UK market, as competition for subscribers in the US has increased, leading to a rise in “cord-cutting” (the cancellation of pay-TV services or subscription channels). The service appeals to so-called ‘cord nevers’, mainly millennials who have never subscribed to satellite or cable TV services and instead rely on online streaming services.
However, there are still questions surrounding Tubi’s content, competition, and advertising. The service is coming from behind in the UK market, and it remains to be seen how competitors will respond to its presence. Additionally, Tubi’s sales pitch of offering something new to UK audiences is partly due to its inability to produce strong local content like the BBC and ITV. It is also a bet that it can build a profitable audience on the back of Bollywood and Nollywood movies.
One of the biggest challenges for Tubi is the advertising market itself. As the service continues to grow its subscriber base, it is also working to increase its advertising revenue. However, as streaming channels mature, there is a risk that their advertising sales growth could slow down. This has been seen with more mature streaming businesses like Roku, which has had to downgrade Wall Street’s expectations for its ad revenues in recent years. Despite these challenges, Tubi is confident in its ability to succeed in the UK market and provide British viewers with a diverse and engaging streaming experience.
