Overview of From underdogs to disruptors: how Tubi and e.l.f. built a different game
This live Masters of Scale: Rapid Response conversation brings together Anjali Sud (former CEO of Tubi) and Kory Marchisotto (president of e.l.f. Beauty) to unpack how two brands turned “underdog” positioning into a competitive advantage. The discussion centers on serving overlooked audiences, challenging industry norms, using bold creative to signal brand identity, and staying customer-close through TikTok, live streams, and community feedback. Both leaders argue that disruption works best when it is not “different for difference’s sake,” but different in ways that create real value, belonging, and growth.
Core idea: build a different game
Both leaders frame their brands as companies that saw what bigger competitors missed:
- Tubi challenged the assumption that “free” equals low quality.
- e.l.f. challenged the beauty norm that premium quality must come with premium pricing.
- Both brands succeeded by serving audiences others ignored and by treating those audiences as valuable, not second-tier.
Marchisotto lays out a four-part blueprint:
- See the overlooked consumer
- Challenge conventions
- Scale the business in the white space
- Open the door for others to follow
How Tubi scaled by embracing the underestimated
Sud explains that Tubi’s biggest battle was changing consumer expectations around free streaming:
- Many people assumed free meant a catch: worse content, worse experience.
- Tubi proved that premium entertainment can be free and still feel high quality.
- The company now has 110 million+ monthly active users and over $1 billion in revenue, while still operating like a challenger.
What made Tubi work
- Strong focus on original content, Hollywood titles, and creator-driven stories
- Willingness to use big cultural moments like the Super Bowl to show scale and legitimacy
- A strategy of bridging traditional entertainment and creator culture
How e.l.f. turned affordability into a power position
Marchisotto says e.l.f. won by making “the inaccessible accessible”:
- The beauty industry often equates value with exclusivity and prestige.
- e.l.f. instead built a brand around prestige-quality products at drugstore prices.
- The company has posted 30 consecutive quarters of growth and reached about $2 billion in annual sales.
Their differentiation strategy
- Focus on consumers other brands overlook
- Use bold campaigns to make underrepresented audiences feel seen
- Treat accessibility and inclusion as both a moral stance and a business strategy
Bold creative as proof of scale
The conversation highlights how both brands used major cultural platforms to signal confidence and reach new audiences.
Tubi’s Super Bowl strategy
- Tubi used the Super Bowl both to reach fans and to show that premium streaming can be free
- A free Super Bowl stream became a proof point for Tubi’s scale and quality
e.l.f.’s Super Bowl strategy
- e.l.f. used unconventional Super Bowl ads to stand out
- Campaigns like the Jennifer Coolidge spot and later Judge Judy emphasized that the brand sees and celebrates older women and underrepresented audiences
- Marchisotto argues the ads were not just about visibility; they were about belonging
“Zero distance” with customers through TikTok and live platforms
A major throughline is the power of direct audience connection.
e.l.f. and TikTok Live
Marchisotto describes a “zero distance” philosophy:
- CEOs and executives should not be detached from consumers
- TikTok Live creates immediate, unfiltered feedback
- One live session with the CEO produced a flood of requests for bronzing drops, which e.l.f. then fast-tracked to market in about six months instead of the original 12–18 month timeline
Community-driven product and content decisions
e.l.f. also uses audience input for:
- Career advice content
- Financial literacy sessions
- Building trust so the brand feels more like a trusted friend than just a cosmetics company
Tubi and creator collaboration
Sud says Tubi increasingly:
- Listens to fan conversation to greenlight content
- Works with creators who are already close to their audiences
- Sees TikTok and creator culture as a bridge to Hollywood, not a threat
A key example:
- Creator Noah Beck became involved in Tubi’s Sideline franchise, which generated 20 million views
- Fan clipping and sharing helped drive momentum organically
The “So Many Dicks” campaign: using data to challenge power structures
One of the episode’s most striking examples is e.l.f.’s “So Many Dicks” campaign, which highlighted the lack of diversity on corporate boards.
Why it mattered
- Marchisotto discovered e.l.f.’s board was unusually diverse
- The company manually checked thousands of board-member names across public companies
- The findings showed how few boards reflected women and other underrepresented groups
The business case
Marchisotto argues the campaign was not just provocative:
- It was a way to jolt people into awareness
- It showed that diverse boards can improve business outcomes
- It positioned e.l.f. as a company willing to use its platform to drive change, not just sell products
Sud strongly endorses the broader message:
- Representation matters most when it leads to impact and winning
- It’s not just about being included; it’s about changing outcomes
Their stance on AI: human-centered, not tech-first
Both leaders see AI as useful, but only if it enhances human creativity and customer experience.
Tubi’s view
- AI and machine learning can improve content discovery
- Streaming platforms need help solving “paradox of choice” so viewers can find what to watch faster
- AI should help lower barriers for creators and improve distribution
e.l.f.’s view
- Marchisotto calls e.l.f.’s approach human-centered
- AI should be an enabler, not the center
- The company’s philosophy is: human first, human last, AI in the middle
Key takeaways
- Underserved audiences can become massive audiences when a brand genuinely serves them.
- Different can be a competitive moat if it solves a real consumer problem.
- Direct customer connection through TikTok and live formats can accelerate product development and deepen trust.
- Bold creative is most effective when it reflects the audience, not just the brand’s ego.
- Inclusion is not just ethical; it can be a growth strategy.
- The best disruption comes from building a new category logic, not merely attacking incumbents on their own terms.
Notable themes and quotes
Themes
- Democratizing access to entertainment and beauty
- Turning “overlooked” into “overperforming”
- Using courage and kindness together
- Building brand loyalty through belonging
- Bridging creator culture and traditional media
Memorable lines
- Marchisotto describes e.l.f. as “bold disruptors with a kind heart.”
- Sud’s Tubi philosophy: free can still be premium
- Marchisotto’s “zero distance” idea emphasizes direct, immediate conversation with the consumer
Bottom line
The episode argues that Tubi and e.l.f. succeeded not by copying category leaders, but by finding the audiences and ideas everyone else missed. Their growth came from a mix of confidence, creative risk-taking, customer closeness, and a willingness to redefine what their industries could look like.