The free streaming platform Tubi has plans to expand to original programming, Bloomberg reports, citing sources familiar with the company’s plans. The streamer is likely to start with original movies, but is also investigating episodic TV shows and talking to potential advertisers about partnerships, the report said.
Fox Corp acquired Tubi for $ 440 million last March, in an effort to enter the power wars. Prior to the acquisition, Fox did not have its own streaming offering. Fox said at the time that it plans to offer a large number of its older programs and movies to Tubi subscribers for free, as well as some sports programs. At the time, there was no question of Tubi’s original content trying to compete with established, paid streaming platforms such as Netflix and Hulu.
But Fox Corp CFO Steve Tomsic said during an investment conference earlier this week that although the company would eventually create original content for Tubi, any programs or movies would be ‘cheap and cheerful’, not the big budget of bigger streamers. “I emphasize that it will be cost-effective,” Tomsic said.
Fox expects Tubi to earn $ 300 million in advertising revenue in the current financial year, Tomsic predicted. Tubi reported 33 million active users in December, an increase of 65 percent over the previous year.