How FAST Platform Tubi Became the #1 Streaming Service: “The Future of Entertainment is Free”

From a $440M acquisition to 100M MAU and first-ever profitability — Tubi CEO reveals the success formula

The Age of Subscription Fatigue: Fox’s Bold Bet on “Free Forever”

Birth of a Netflix Challenger: The Secret Behind the #1 FAST Platform That Achieved Profitability in 2024

58% Gen Z Choice: The Success Formula of Free Ad-Supported Streaming

“Right Business Model at the Right Time” - CEO Anjali Sud on Growth Strategy

Executive Summary

On November 3, 2025, appearing on The Information TV, Tubi CEO Anjali Sud addressed the company’s profitability milestone announced in Fox Corp.'s earnings the day before:

“The way we achieved profitability wasn’t through cost-cutting. It was through efficient growth.”

This single statement encapsulates the current state of the streaming industry. While major streaming services like Netflix, Disney+, and Warner Bros. Discovery struggle with cost-cutting and subscriber churn, Tubi—an unknown free streaming service acquired by Fox for $440 million in 2020—achieved profitability while actually increasing content investment.

This article integrates CEO interviews from The Information, strategic analysis from CNBC, and market forecasts from Omdia to provide an in-depth analysis of Tubi’s success factors and their implications for the K-content industry.

Key Metrics Summary

Part 1. The $440M Contrarian Bet on the ‘Future’

2020: Industry’s Cold Reception

In 2020, Fox Corporation acquired Tubi, a free ad-supported streaming TV service, for $440 million. The industry’s reaction was lukewarm. This was when Netflix was surpassing 200 million subscribers and Disney+ was experiencing explosive growth. As every media company rushed into the “subscriber acquisition war,” Fox moved in the opposite direction.

“Free ad-supported streaming? Outdated.”

That was the conventional wisdom. The consensus was that paid subscription models were the future, while ad-supported models were relics of the past. But five years later, the tables have completely turned.

2025: The Reversal

As of 2025, Tubi has:

Achieved 100M+ monthly active users

Surpassed 1 billion streaming hours per month

Captured 2.1% of the U.S. streaming market, overtaking Peacock and Max

Reached first-ever profitability in Q4 2024

58% of viewers are Gen Z/Millennials (18-34)

Meanwhile, the supposed winners of the “subscriber acquisition war” are struggling. Netflix introduced an ad tier, Disney+ enacted price increases and content cuts, and Warner Bros. Discovery wrote off billions in content assets.

Part 2. CEO’s Success Formula: ‘Timing’

On November 3, 2025, the day after Fox Corp.'s earnings announcement, Tubi CEO Anjali Sud appeared on The Information TV to explain Tubi’s success in detail. Below are the key excerpts from the interview.

“Right Business Model at the Right Time”

The Information: “You’ve been at Tubi for about two years now, and you just achieved profitability. How did you do it? Walk us through the playbook.”

Sud’s Response:

“Tubi has ended up having the right business model at the right time in streaming, and we also have the benefit of scale. We are free streaming. We are 100% free to consumers, no paid tier, no paid ad tier—completely ad-supported.”

“What we found is that in the streaming environment, as prices go up and as there’s more fragmentation and friction, consumers—especially younger consumers—are really flocking to free. They’re willing to engage in that value exchange of advertising if they don’t have to pay.”

This response cuts to the core of Tubi’s success: Subscription Fatigue. As of 2025, the average American household subscribes to 4.5 paid streaming services, spending $60-80 per month. With Netflix and Disney+ even introducing ad tiers, consumers now face a situation where they “pay and still watch ads.”

Tubi’s value proposition was simple: “Completely free, with ads.” A model that’s free from the start feels more honest to consumers than hybrid models that charge money and still show ads.

“The Flywheel is Spinning”

Sud explained Tubi’s growth engine as a flywheel effect:

“We’ve invested a lot in growing the catalog. We have the world’s largest collection of movies and TV series. We now have creator content on the platform, we have originals. We’re seeing momentum as we improve the value proposition.”

“And then lastly, there’s a flywheel that gets better as you get more users, more data, and more scale. We now have over 100 million people watching over a billion hours of Tubi every month.”

“When all that engagement and usage data combines with a long-tail content library, we can provide better personalized recommendations and experiences. That creates more advertiser interest and demand, and we can reinvest that revenue back into content. Everything starts spinning like a flywheel.”

“It’s Not Cost-Cutting. It’s Growth.”

The Information: “Did you cut costs at all? Is this all revenue growth?”

“Yes. Our overall operating expenses are increasing, especially content investment. At a time when other streamers are having to cut back on investment. It’s really the momentum of the model and the audience flocking to us.”

This is the most impressive part of the Tubi story. While other streaming services cut content budgets and lay off staff to reduce losses, Tubi achieved profitability while increasing investment. It’s a victory of efficient growth, not cost-cutting.

Part 3. Creator Strategy: “YouTube for Long-Form”

Revenue Sharing Model: “When We Win, Creators Win”

The Information: “How do you structure deals with creators on a free platform? Do you share ad revenue, or do you pay upfront?”

“Most of our deals with content creators, whether from Hollywood or the creator economy, involve ad revenue sharing. We love that model because the incentives are completely aligned. When we win, creators win. And that’s scaled really well.”

“When we do exclusive or original content, you might see a slightly different model, but it’s quite similar to what you see in streaming or the industry.”

“Collaborating with Diverse Storytellers”

Sud explained Tubi’s differentiation:

“What’s really differentiated Tubi is our willingness to work with a much broader and more diverse set of storytellers, and our ability to help those stories find an audience.”

“Because we’re long-tail, you can do pretty well on Tubi even without a mainstream audience. We’re very good at finding specific fandoms—whether horror fans, true crime fans—and helping those consumers dive deep into content.”

“I think that’s what’s worked uniquely well for us. It’s very similar to what YouTube did with UGC and short-form, but we’re doing it with long-form, movies and TV series.”

10,000 Episodes in 4 Months

The performance of “Tubi for Creators,” launched in June 2024, was remarkable. According to CNBC:

Initial 6 creator partners expanded to 100+

500 episodes exploded to 10,000+

TikTok star Noah Beck’s ‘Sidelined’: 20M views, median viewer age 21

Announced first slate of original films (creator collaborations)

Sud emphasized this achievement on The Information:

“Just four months ago we started bringing creators onto the platform. We have almost 10,000 episodes from some of the world’s most popular creators. Now we’re adding more exclusive and original content. Last week we announced our first slate of original films with creators.”

“The creators on our platform are already making more money on Tubi than on any other platform. And they’re able to do projects they artistically wanted to do—projects they had the capability for but couldn’t do in the short-form environment because algorithm optimization works differently.”

Part 4. “Free Forever”: No Subscription Model… The Future of Entertainment

“The Future of Entertainment is Free”

The Information: “Any plans to launch a subscription product?”

“No plans. And I’ll

tell you, we’re really going all-in. We think the future of entertainment is free.”

“The reason is that consumers are going to demand frictionless experiences. And storytellers also want their stories to reach the widest possible audience. So we’re going all-in on free.”

“In fact, we’re running a brand campaign right now called ‘Free Forever.’ Really… [laughs] Forever. Yes, we’re really going all-in on this. I think when you have a strength, you should lean into it.”

This declaration isn’t just a marketing message—it’s a firm conviction about Tubi’s business model. While Netflix, Disney+, and Amazon Prime Video introduce ad tiers and raise prices, Tubi goes in the opposite direction.

The Economics of the Free Model

The free model works for clear reasons:

Low Barrier to Entry: No friction from payment info, subscription decisions. Instant viewing after app download.

Psychological Acceptance: “Free + ads” feels fairer to consumers than “paid + ads.”

Zero Churn Risk: No concept of subscription cancellation. Users return when they want.

Ad Efficiency: 95% on-demand viewing captures active viewers, increasing ad attention.

Part 5. Competitive Landscape: The Battle for Attention Economy

“Going from Short-Form to Long-Form is Harder”

The Information: “There are reports that TikTok and Instagram are exploring TV app launches. How do you plan to compete?”

“In the attention economy, competition is everything vying for people’s attention. It’s fierce. But ultimately, I don’t think competition is all bad. It forces us to improve experiences for fans.”

“But I’ll say, we’ve been obsessed with long-form storytelling experiences for over 10 years. Everything I’ve learned in the past two years is that bringing different formats and media into one experience and delivering an equally optimized, satisfying experience is very, very difficult.”

“So we actually think we have quite a big advantage in long-form. Going from short-form to long-form is actually harder than helping creators who want to do long-form come into our ecosystem, like we’re doing.”

FAST Market Competition

According to Omdia, 2025 global FAST operator market share is:

Source: Omdia, November 2025

While 2% market share appears low, there’s an important distinction. Roku, Samsung TV Plus, and LG Channels are pre-installed apps on TVs. Tubi, on the other hand, is a service users actively choose to download. That 2% represents active choice, not passive exposure.

In Omdia’s U.S. video service usage rankings (April 2025), Tubi ranked 5th after Amazon Video, Netflix, YouTube, and Peacock—essentially #1 among FAST services.

Part 6. Industry Outlook: Demographic Transition ‘Gen Z’

Carriage Fee Disputes and Structural Change

The Information: “What do you think about the carriage fee dispute between Disney and YouTube TV?”

“Not that surprising. Carriage disputes are quite common. We’ll see more in this environment. It’s become more competitive, and the fight for attention will intensify. The stakes are high.”

“And one more thing—there’s a major shift happening that’s not always clear to people outside the industry: the demographic transition.”

“Broadcast TV and pay TV, cable bundle audiences tend to be much older. Yet many services are really trying to move to younger audiences. So I expect more disputes and higher-stakes negotiations in the coming years.”

The Battle for Young Viewers

In this “battle for young viewers,” Tubi has already secured advantageous ground:

58% of total viewers are Gen Z/Millennials (18-34)

Noah Beck’s ‘Sidelined’: 20M views, median viewer age 21

Direct Gen Z targeting through creator content

Meanwhile, traditional broadcast TV and cable have median viewer ages exceeding mid-50s. Even Netflix’s average viewer age has entered the 40s. To capture Gen Z, which rejects the very concept of “subscriptions,” a new approach is needed. Tubi has already found the answer.

According to Pew Research Center, has streaming claimed the throne in America? The latest survey shows 83% of U.S. adults watch streaming services, with Netflix and Amazon Prime Video most used. Meanwhile, only 36% subscribe to cable or satellite TV at home.

Part 7. FAST Market Forecast: ‘2X Growth’

Global Market Size

According to Omdia, the global FAST market is projected to nearly double from $5.8B in 2025 to $10.6B in 2030—a 5-year growth with 12.8% CAGR.

Market Forecast by Country (2030)

Structural Imbalance in Advertising Market

Omdia points out a severe imbalance between media usage time and ad revenue, calling it “The Engagement Equation”:

Video streaming is undervalued in ad revenue relative to usage time. As this gap closes, FAST services’ ad revenue is expected to increase.

Tubi’s 5 Success Strategies (CNBC Analysis)

CNBC analyzed Tubi’s success through 5 strategies in a December 24, 2025 article:

① Targeting Subscription Fatigue

Exploited higher consumer acceptance of free + ads model versus paid + ads (Netflix, Disney+ ad tiers). Clear value proposition of “free” attracts consumers tired of paid subscriptions.

② Gen Z Creator Strategy

Launched “Tubi for Creators” in June 2024. Recruited TikTok and YouTube Gen Z creators to platform. Expanded from 6 → 100+ creators, 500 → 10,000+ episodes. Noah Beck’s ‘Sidelined’ as flagship success case.

③ 95% On-Demand FAST Model

Unlike traditional linear FAST (Pluto TV, Samsung TV Plus), 95% of viewing is on-demand. Users choose desired content at desired time. Like Netflix, just free. Captures active viewers, boosting ad effectiveness.

④ Smart Content Investment

Instead of massive original investments, focused on licensing. Acquired “catalog” content major studios no longer want at low cost, building 30万+ title library. Dominated niche genres with 9,000+ horror titles.

⑤ Parent Company Fox Synergy

Leveraged Fox’s NFL, Super Bowl, MLB World Series rights. Super Bowl broadcast Tubi ads exposed tens of millions of viewers, driving new user acquisition. Tubi viewing data reciprocally enhanced Fox’s sports ad sales. Virtuous synergy cycle.

Part 8. Implications for K-Content: ‘Partnership Strategy’

K-Content’s Global Competitiveness and FAST Platform Strategy

K-content already demonstrates overwhelming competitiveness in the global streaming market. According to Omdia, within Netflix, Korean content represents only 7% of total titles but accounts for 13% of viewing hours and 6% of views—showing approximately 2x viewing efficiency per title. Among non-English content, it ranks #1 in viewing hours at 13%, far ahead of Spain (10%) and Japan (2%).

U.S. market performance is particularly noteworthy. K-content’s share within U.S. Netflix is 5.1%—double the global average of 2.5%. This means K-content has secured solid demand even in the most competitive North American market.

Tubi’s ‘Partnership Strategy’

Tubi’s business model offers various opportunities for K-content. First, the revenue-sharing model of “when we win, creators win” is highly attractive to K-content producers. It enables global distribution without upfront payment burden, and allows monetizing existing libraries through secondary channels.

Tubi’s long-tail and niche strategy also aligns well with K-content. Tubi’s approach that “you can succeed with specific fandoms even without mainstream popularity” opens opportunities to build genre-specific channels for K-romance, K-thriller, K-variety. K-drama’s binge-watching culture perfectly matches Tubi’s 95% on-demand service structure. Full series viewing freedom fits K-drama consumption patterns better than linear scheduling.

If K-content integrates into Tubi’s recommendation algorithm, natural exposure increase is expected. Tubi’s monthly active users exceed 100 million. Just as Tubi currently positions as “the platform for horror fans,” it could establish itself as “the platform for K-drama fans.”

For creator collaboration, a Korean version of “Tubi for Creators” could be envisioned, producing long-form content linked with K-pop artists or Hallyu influencers. Most importantly, Tubi’s 58% Gen Z/Millennial user composition aligns with K-pop fandom’s primary age demographics, maximizing synergy.

Strategic Value of Samsung and LG FAST Platforms

Korean TV manufacturers’ FAST platforms are also emerging as natural global distribution channels for K-content. Samsung TV Plus ranks 3rd with 12% global share, already producing K-drama originals like “Todo Bajo Control” targeting Latin America. LG Channels ranks 8th globally (3%), expanding originals targeting the U.S. market.

Both platforms hold advantageous positions for strategic partnerships with K-content as Korean companies. The unique opportunity for vertical integration of hardware (TV) and software (content) can maximize K-content’s global exposure.

Target Market Priorities

Conclusion: What Tubi Proved - ‘Nothing is Impossible’

Tubi is proving that the free model remains viable in an age of subscription fatigue. It chose the right business model at the right time. The efficient growth strategy—achieving profitability while expanding content investment—shattered the prejudice that “free = low quality.”

The overwhelming data of 100M MAU and 1B viewing hours isn’t just numbers. It creates a flywheel effect that attracts advertisers, enables more content investment, and brings in even more viewers. Positioning as “YouTube for long-form” and introducing creator revenue-sharing models sustain the content ecosystem’s scalable expansion. The “Free Forever” declaration demonstrates unwavering strategic direction.

Ten years of accumulated long-form content operation experience creates a competitive advantage that’s hard to replicate. As CEO Sud emphasized, “going from short-form to long-form is much harder than the reverse”—this builds an entry barrier that short-form platforms like YouTube or TikTok struggle to overcome.

“The future of entertainment is free.” Sud’s declaration is creating cracks in the Netflix/Disney±centric subscription competition structure. As 31% of U.S. adults feel streaming services lack value for money (Pew Research), Tubi’s free model becomes increasingly persuasive. Just as a “peripheral streaming service” acquired for $440M grew into a game-changer with 100M MAU, FAST channels can become a new monetization path and global expansion opportunity for K-content. This is why the K-content industry must pay attention to Tubi’s success story.

Sources

The Information TV, “Tubi CEO on Streaming Landscape, Google’s AI Strategy, Starcloud’s Space GPUs”, Nov. 3, 2025
https://www.youtube.com/watch?v=wzqymFSGOxk

CNBC, “Tubi Market Dominance Strategy Analysis”, Dec. 24, 2025

Omdia (Maria Rua Aguete), “Global Streaming Trends: Focus on FAST, K-Content and Advertising”, Nov. 2025

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