How Does Tubi Make Money?

A Complete Breakdown of Tubi’s Revenue Model, Business Strategy, and AVOD Profitability in 2026

1Introduction

Tubi has revolutionized the streaming industry since its founding in 2014, transforming from a niche movie library into the largest free ad-supported streaming TV (FAST) platform in the United States. With over 100 million monthly active users and more than 10 billion streaming hours logged annually, Tubi has fundamentally changed how people consume entertainment without paying subscription fees. But how does Tubi make money without charging viewers a dime?

Understanding how Tubi generates revenue is crucial for potential investors, media entrepreneurs, content creators, and anyone interested in advertising-based video on demand (AVOD) business models. In 2023, Tubi reported $900 million in revenue, a 16% increase from the previous year, with the platform crossing $1 billion in annual ad revenue expected in the coming quarters. These numbers reveal a highly efficient, ad-supported business model that has disrupted traditional subscription-based streaming.

This comprehensive guide breaks down exactly how Tubi makes money, exploring their advertising revenue streams, content licensing strategies, and the strategic decisions that drive their growth. Whether you are researching the Tubi revenue model for investment purposes or seeking to understand AVOD monetization strategies, this analysis provides actionable insights into one of the most successful free streaming platforms in the market.

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2What Is Tubi?

Tubi operates as a free ad-supported streaming television (FAST) platform, offering users access to over 300,000 movies and TV episodes across more than 40 categories without requiring a subscription fee. Unlike Netflix, Disney+, or HBO Max, Tubi does not charge viewers any monthly fees. Instead, it provides completely free access to its content library, generating revenue through advertising and strategic partnerships.

The platform was founded in 2014 by Farhad Massoudi and Thomas Ahn Hicks in San Francisco, California. Fox Corporation acquired Tubi in March 2020 for $440 million, providing the platform with additional resources to expand its content library and advertising technology. Today, Tubi is available in the United States, Mexico, Canada, Australia, New Zealand, and the United Kingdom, with plans for further international expansion.

Tubi’s key features include:

• Massive Content Library: Over 300,000 movies and TV episodes plus 300+ live channels
• No Registration Required: Users can start watching immediately without signing up
• Multi-Device Access: Available on Roku, Apple TV, Amazon Fire TV, smart TVs, gaming consoles, and mobile apps
• Original Content: Tubi Originals produced through initiatives like Stubios fan-fueled studio
• Live TV: 250+ live channels including news, sports, and entertainment

3How Does Tubi Make Money?

Tubi’s revenue model is built primarily on advertising revenue, with additional income streams from content licensing partnerships and strategic collaborations. The company operates as an intermediary between content creators and viewers, monetizing the attention of its massive user base through targeted advertisements. This asset-light approach allows Tubi to generate substantial revenue without the content production costs that burden subscription-based competitors.

AAdvertising Revenue: AVOD Model (Primary Revenue)

The vast majority of Tubi’s revenue comes from advertising. As a 100% ad-supported platform, every viewer sees advertisements, creating a pure advertising environment that attracts brands seeking broad reach:

Tubi’s advertising advantage lies in its 100% ad-supported audience. Unlike Hulu (70% ad-supported) or Peacock (84% ad-supported), every Tubi viewer sees ads, providing advertisers with complete audience reach without ad-free tier leakage.

BTargeted Advertising and Data Monetization

Tubi leverages sophisticated data collection to deliver targeted advertisements, increasing ad effectiveness and commanding premium CPM rates:

CContent Licensing and Revenue Sharing

Tubi’s content library is built through strategic licensing agreements rather than expensive original production:

DStrategic Partnerships and Distribution Deals

Beyond advertising and licensing, Tubi generates value through strategic alliances:

• Device Manufacturer Partnerships: Pre-installation on smart TVs and streaming devices reduces user acquisition costs
• Studio Partnerships: Exclusive content licensing deals with Paramount, Lionsgate, MGM, and others
• Sports Broadcasting: NFL game broadcasts including Super Bowl and Thanksgiving games drive massive viewership
• Self-Serve Advertising Platform: Launched in May 2025, enabling direct advertiser relationships

ETubi Originals and Exclusive Content

While primarily a licensed content platform, Tubi has begun selective original content production:

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4Detailed Revenue Model Breakdown

ABusiness Model Mechanics

Tubi operates on a simple but powerful formula: users watch content for free, advertisers pay to showcase ads, and Tubi earns from ad impressions. This AVOD (Advertising Video on Demand) model creates a virtuous cycle where free access drives user growth, which attracts more advertisers, which funds more content acquisition.

The platform serves a diverse audience that is highly valuable to advertisers:

BPricing Model Evolution

Tubi’s advertising pricing has evolved to balance revenue growth with viewer experience. The platform maintains a light ad load (4-6 minutes per hour) compared to competitors, which improves viewer retention and increases total watch time. This strategy prioritizes long-term audience growth over short-term ad revenue maximization.

CScaling Profits

Tubi’s asset-light model enables remarkable scalability. Without the massive content production costs of Netflix or Disney+, incremental viewers add revenue without proportional cost increases. In 2024, Tubi reached 100 million monthly active users and achieved profitability for the first time.

5How to Make Money With Tubi

While Tubi the company makes money through advertising, individuals and businesses can leverage the platform for income and reach in several ways:

AContent Licensing for Filmmakers

Independent filmmakers and studios can license content to Tubi:

• Revenue Sharing: Earn money based on viewership and ad impressions generated by your content
• Independent Filmmaker Friendly: Tubi is considered one of the best-paying platforms for independent creators
• Catalog Licensing: License older or niche content that may not fit traditional distribution
• Global Reach: Access audiences across multiple countries without distribution costs

Filmmakers can submit content through Tubi’s partner programs and earn passive income from ad revenue sharing.

BAdvertising on Tubi

Businesses of all sizes can advertise on Tubi’s platform:

• Programmatic Advertising: Access Tubi inventory through demand-side platforms (DSPs)
• Self-Serve Platform: Launch campaigns directly starting at $50 (launched May 2025)
• Small Business Friendly: CPMs of $15-35 are lower than Hulu ($25-40) or Peacock ($25-35)
• AI Creative Tools: Platforms like Adwave can create 30-second commercials from website URLs

CContent Creation for Tubi Originals

Creators can participate in Tubi’s original content initiatives:

• Stubios Platform: Fan-fueled studio where creators pitch projects directly through an app
• The Blacklist Partnership: Opportunities for screenwriters to get films greenlit
• Cost-Effective Production: Tubi’s lean production model offers opportunities for emerging creators

DAffiliate and Partnership Opportunities

While not publicly detailed, content partners may have referral opportunities for introducing new filmmakers or advertisers to the platform.

6Is Tubi Profitable?

Yes, Tubi achieved profitability in 2025, marking a significant milestone for the AVOD sector. According to CNBC reports from December 2025, Tubi hit profitability this year while attracting younger audiences willing to sit through ads. The platform’s revenue reached approximately $900 million in 2023 with expectations to cross $1 billion in annual revenue in the coming quarters.

ARevenue Insights

Tubi’s revenue model demonstrates strong unit economics:

Tubi now outranks several major subscription services including Peacock, Max, Paramount+, and Apple TV+ in total viewing time according to Nielsen’s Gauge report.

BGrowth Potential

Tubi continues investing in growth through international expansion, technology improvements, and content diversification:

• Geographic Expansion: UK launch in 2024 with additional markets planned
• Live Sports: NFL broadcasts driving massive viewership spikes
• Original Content: Selective investment in high-ROI productions
• Ad Tech Innovation: Advanced targeting and frequency management tools

7Pros and Cons of the Business Model

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8Frequently Asked Questions

9Final Thoughts

Understanding how Tubi makes money reveals a masterclass in the AVOD (Advertising Video on Demand) business model. By offering completely free access to a massive content library and monetizing viewer attention through targeted advertising, Tubi has built a $900+ million revenue engine that achieved profitability in 2025. The Tubi revenue model demonstrates the power of removing price barriers to drive scale, then monetizing that scale through advertising.

For entrepreneurs, Tubi’s success offers valuable lessons: free access can be a powerful monetization strategy when combined with advertising; partnerships can reduce costs and accelerate growth; and light ad loads can maintain user engagement better than heavy advertising. For content creators, the platform offers legitimate revenue opportunities through licensing and revenue sharing. For advertisers, Tubi provides access to cord-cutters and younger demographics unreachable through traditional television.

As Tubi continues evolving, expanding internationally, and selectively investing in original content, its core principle remains unchanged: Tubi makes money by connecting viewers with free, quality entertainment and capturing value from advertisers seeking to reach that engaged audience at scale. In an era of subscription fatigue, Tubi’s model represents a compelling alternative that benefits viewers, advertisers, and content creators alike.