- Fox's investment in Tubi is paying off in the U.S. election year thanks to a local ad push
- Tubi is raking in ad spending and is on pace to cross the $1 billion revenue milestone
- Fox's CEO also provided an update on its Venu Sports legal battle
Five and a half years after buying startup streamer Tubi for $440 million, Fox Corp. declared on Monday that the ad-supported video-on-demand platform will become a $1 billion revenue earner this fiscal year.
Reporting its fiscal Q1 earnings, Fox said that Tubi saw a 19% sales bump in the first quarter, driven by the first national election during which it has been a meaningful adverting player. (Tubi generated sales of $910 million in the 2023 fiscal year.)
“This cycle we have seen Tubi become a material recipient of political advertising,” Fox CEO Rupert Murdoch told equity analysts on Monday.
“Tubi’s large but hard to reach audience, coupled with its advanced targeting and geo-targeting capabilities, has clearly differentiated it as campaigns look to maximize reach and efficiency.”
Murdoch said that unlike that 2020 election, during which ad buying was more nationally focused, political advertisers this year have relied more on the kind of targeted local campaigns for which Tubi’s advanced advertising capabilities are particularly effective.
He disputed the notion that buying political ads on Tubi cannibalized business from Fox owned and operated broadcast stations.
“It was quite the reverse,” Murdoch insisted. “Tubi was able to capture money we couldn’t otherwise take. There was such a tidal wave of political dollars. And it’s not just the geo targeting that’s valuable. Tubi has a demographic that’s very hard to reach. Most of the users are cord-nevers and younger. It’s a very diverse, very valuable audience. For top-tier advertisers, it’s a must buy.”
Overall, Fox reported revenue of $3.56 billion in the July-September quarter, up 11% year over year, with ad revenue during the period also increasing 11% to $1.3 billion.
The right-wing media company was particularly bullish on up coming quarters, with the current fiscal Q2 including revenue from the just completed World Series, which it said broke records for a five-game October Classic.
Fox also said it’s already sold out of ad inventory for February’s Super Bowl, which will by broadcast on FOX, with pricing reaching record levels.
Murdoch and his executive team were also asked Monday about their streaming joint venture with Disney and Warner Bros. Discovery, Venu Sports, which recently had a preliminary injunction put on it amid an antitrust lawsuit from virtual pay TV operator FuboTV.
The CEO said Fox is still waiting for the results of an appeal, and that, “We’re very excited to launch it when we have the ability to do so.”