The free streaming platform Tubi has plans to expand its original programming, Bloomberg reports, citing sources familiar with the company’s plans. The streamer is likely to start with original films, but he is also exploring episodic TV shows and is talking to potential advertisers about partnerships, the report says.
Fox Corp. acquired Tubi for $ 440 million last March in an attempt to enter the streaming war. Prior to the acquisition, Fox did not have its own streaming offering. Fox said at the time that it planned to offer a large number of its older shows and films to Tubi subscribers free of charge, as well as some sports programming. There was no talk at the time about Tubi creating original content to try to compete with established and paid streaming platforms like Netflix and Hulu.
But Fox Corp. CFO Steve Tomsic said during an investor conference earlier this week that, although the company ended up creating original content for Tubi, any program or film would be “cheap and cheerful”, not the big budget offers from larger streamers. “I stress that it will be cost-effective,” said Tomsic.
Fox expects Tubi to generate $ 300 million in advertising revenue in the current fiscal year, Tomsic predicted. Tubi reported 33 million active users in December, an increase of 65% over the previous year.