Can Tubi tough it out? Tubi can weather a difficult period for streaming, but changes loom for the industry. Streaming market saturation and shrinking revenues are signs that major consolidation isn’t too far away.
- Analysts have long predicted that a streaming shakeout will leave three or four major services standing and licensing content from the stragglers—but second- or third-tier services like Tubi, Peacock, or Paramount+ are refusing to go gentle into that good night.
- In fact, Fox seems unafraid of the inevitability of consolidation and is making a major effort to lift Tubi’s presence as a household brand. Tubi raised eyebrows with its award-winning Super Bowl LVII commercial produced by Mischief that messed with viewers by cutting away in the fourth quarter to a smart TV interface, causing game watchers to cry out “Who sat on the remote?!” in unison.
Our take: Tubi’s rapid growth is promising, but it’s still a challenging time to nurture a “new” streaming brand. Fox’s choice to push Tubi as an independent brand rather than promote it as “the Fox streaming service” is a high-risk, high-reward strategy that could either develop Tubi into a household name or cause it to fade away.
- An acquisition still isn’t off the table—Fox may be looking to develop Tubi’s brand and increase its audience in order to sell it at an even higher price once better economic times return.