Overview of The Town — Tubi Takes on YouTube, and a Michael Jackson Movie Update
This episode of The Town (The Ringer) features Anjali Sood, CEO of Tubi, discussing how the ad‑supported streamer reached profitability, its creator strategy, product choices targeting younger viewers, and how Tubi fits into the broader Fox streaming portfolio. The second segment covers the latest developments on the Michael Jackson biopic: reshoots triggered by legal/settlement issues, studio and estate dynamics, trailer reception, and box office prospects.
Tubi: how it became profitable
- Milestone: Fox announced Tubi is now profitable. CEO Lachlan Murdoch cited 27% revenue growth and 18% viewing time growth last quarter; margins expected in the 20–25% range. Tubi reports ~100 million monthly active users and 2.1% of CTV viewing (Nielsen), ahead of several subscription services on that metric.
- Growth model: Sood says profitability came from “growing profitably” — higher top-line growth and engagement allowed continued investment in content/tech while becoming more efficient (not from heavy cost-cutting).
- Service positioning: 100% free, ad‑supported streaming (FAST/AVOD). Mix of licensed long‑tail content and originals; increasingly partnering with digital creators.
Creator strategy and distribution model
- Focus: Tubi is pursuing creators to reach specific fandoms rather than chasing only the largest influencers. They look for highly engaged/obsessive followings that will drive retention and cross‑consume other content on the platform.
- Deals: Recent non‑exclusive and exclusive arrangements with YouTube creators (e.g., MrBeast non‑exclusive inventory, creators named in press releases). New partnership deals include Kevin Hart’s Heartbeat and individual creators (Kev On Stage, others).
- Monetization model: Mostly revenue‑share deals (like YouTube) rather than big upfront licenses; they may experiment with licensed deals on a case‑by‑case basis. Tubi emphasizes creators retaining IP.
- Strategic pitch: Tubi pitches as incremental (add to YouTube presence) rather than asking creators to abandon other platforms — offers CTV CPMs and access to a different/audienced, especially younger viewers.
Originals, programming strategy, and audience behavior
- Originals: Hundreds of originals, targeted to fandoms rather than aiming for monocultural “hits.” Tubi claims Luminate top‑10 placements 17 times in the past year for Tubi originals (example: R.L. Stine’s Pumpkinhead).
- Product choices: Mobile‑first discovery features (a TikTok‑like "scenes" scroll) to reflect younger audiences discovering on mobile then moving to CTV. Younger viewers value variety: nostalgia, highly produced originals, creator content, authenticity.
- Sports: Selective approach to live sports. The Super Bowl stream was a major success (24 million viewers on game day; audience skewed younger: 40% 18–34, ~50% female). Tubi will stream the Thanksgiving Lions vs. Packers game but is not planning broad live‑sports investment.
- Cross‑platform role: Tubi is positioned as a free, cord‑cutting friendly complement to Fox’s other (paid/subscription) properties — not fully integrated with Fox One today but strategic for reaching younger/multicultural audiences.
Competition, risks, and tailwinds
- Competitors: Roku Channel, Pluto, other FAST/AVOD players, and big tech/studio services — Sood says Tubi's focus and pure‑play free model are advantages.
- Concerns: Sood’s main worry is execution and maintaining focus; she views AI and creator proliferation as tailwinds (more stories needing distribution).
- Spending: Despite profitability, Tubi plans to keep investing in content and tech — the company isn’t curbing spending broadly, but will seek efficiency and selective “bigger swings” informed by creator learnings.
Key numbers & facts mentioned
- Revenue growth: +27% (quarterly)
- Viewing time growth: +18%
- Operating margin goal range: 20–25%
- CTV share: 2.1% of all viewing (Nielsen)
- MAU: ~100 million
- Super Bowl on Tubi: 24 million viewers on game day
- Trailer stat (Michael Jackson film): 116 million views in 24 hours
Michael Jackson movie update — what to know
- Production issues: The film underwent significant changes — the third act was reshot because of a previously undisclosed settlement that barred dramatizing a particular accuser’s story.
- Creative team & casting: Antoine Fuqua directing; Jaafar (Jafar/Jah?) Jackson (Michael’s nephew) plays Michael Jackson; John Logan (screenwriter) reportedly rewrote the script.
- Studio & rights landscape: US distribution by Lionsgate; international distribution via Universal; the Michael Jackson estate has strong creative control and is a driving force.
- Trailer & buzz: Trailer had massive initial traction (116M views in 24 hours), the biggest trailer debut in Lionsgate history.
- Box office outlook:
- Expectation of international‑heavy gross (analysts predict ~75–80% overseas), akin to Bohemian Rhapsody’s pattern.
- Conservative estimate discussed: $400–500M global; upside possible to $1B+ if the film lands and controversy is managed.
- Controversy: The estate appears intent on portraying Jackson as innocent; prior plans to address accusers in the film were scrapped because of legal constraints and settlement terms — this could shape tone and reception, especially domestically.
Notable quotes / soundbites
- “We got there by growing profitably.” — Anjali Sood on Tubi’s path to profitability.
- “We’re 100% free streaming for consumers.” — Sood on Tubi’s core positioning.
- “Creators are going to be the next generation of storytellers and talent.” — Sood on why Tubi is investing in creators.
- “We’re not trying to replace their business on YouTube. We’re trying to augment and help them grow.” — Sood on Tubi’s pitch to creators.
Takeaways for industry watchers
- Tubi demonstrates a viable AVOD path to profitability by scaling engagement and monetization rather than cutting costs — worth tracking as a model for other FAST players.
- Creator-first strategies in streaming are evolving: Tubi focuses on fandoms, rev‑share arrangements, and CTV monetization rather than exclusivity-only deals. This incremental approach could be appealing for mid‑tier creators.
- Product choices (mobile discovery features, personalization) are central to capturing younger viewers who move from phone to TV.
- The Michael Jackson film is high-stakes: trailer buzz and international appetite could drive big global box office, but estate influence and legal/ethical issues may complicate domestic reception.
Actions / what to watch next
- Monitor Tubi’s next earnings updates for sustained margin reporting and user engagement trends.
- Watch outcomes of Tubi’s creator exclusives (audience retention, cross‑consumption, creator revenue).
- Track the Thanksgiving NFL stream as a test of replicating Super Bowl success.
- Follow reviews and early international box office for the Michael Jackson film — those will signal how much controversy affects performance and whether a second film gets greenlit.