Fox Corporation has acquired ad-supported streaming platform Tubi for $440 million, bringing more than 20,000 movies and shows to the platform.
Streaming platforms have continued to rise in these past few years with companies like Disney joining the battle with its own recently launched Disney Plus to compete with the likes of Netflix, HBO Go, Hulu, Amazon Prime, YouTube, Crackle (Sony), Pluto TV to mention but a few.
Tubi currently holds 25 million users and also partners with top-tier studios and networks to provide people with thousands of movies and TV shows. The move by Fox Corporation to acquire the popular streaming platform is a direct sign that its joining streaming wars too.
One should however note that, the Fox Corporation which doesn’t have its own streaming platform, is separate from 21st Century Fox since a part of the company was acquired by Disney in 2019 for $73 billion.
“Tubi will immediately expand our direct-to-consumer audience and capabilities and will provide our advertising partners with more opportunities to reach audiences at scale,” Fox CEO Lachlan Murdoch said in a press release.
“Importantly, coupled with the combined power of FOX’s existing networks, Tubi provides a substantial base from which we will drive long-term growth in the direct-to-consumer arena.”
Fox Corporation joins the streaming wars with its recent acquisition of Tubi
The big move will allow Fox to enter the market with at least a huge number of users behind its back giving the company a good start ahead. According to reports, Fox used the sale of its stake in Roku to purchase Tubi.
Based on information gathered from the press release, Fox plans to continue running Tubi as an independent service, which means it won’t change the branding or add a new name to it. It will also use the platform to offer a large number of its TV shows and movies for free to subscribers.
There are also plans of expanding the type of content that Tubi will provide to its subscribers though it may not get into producing original type of content like other competitors have done such as Disney Plus, Netflix or Apple TV Plus.
The ad-supported video streaming market saw a 38 percent growth in revenue between 2018 and now, with it expected to grow even higher in the next few years. Pluto TV last month announced that it now has more than 22 million users, and it expects the numbers to hit 30 million by December this year.
The streaming market is a good thing to jump in right now, and Fox definitely sees the bigger picture and hopes to capitalise on this new investment.
Author: Allan Bangirana
Allan Bangirana has a taste for all kinds of topics and usually writes about tech, entertainment, sports and community projects that make a difference in society.