Act One
How Tubi came to be
First the arc at a glance, then the story in 10 drawn beats.
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The receipts
An open-source case, told as a story
Tubi
The founder story of Farhad Massoudi, in 10 beats — then how the business actually works.
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About this case
Welcome to the open-source case for Tubi. This is the story of a company that bet early on a simple, radical idea: that as TV channels gave way to TV apps, premium entertainment could be made accessible to everyone for free—no subscription, no barrier, just advertising revenue earned only while viewers are actively watching. Founder Farhad Massoudi saw that shift coming before most people could imagine it, and built what became the largest free on-demand streaming service in the United States, with over 250,000 TV episodes and movies for cord-cutters and younger, diverse audiences. To understand how it all fits together, we trace four lenses: the Founder Story of how Massoudi turned a vision of disrupted TV advertising into a company; the Golden Circle of why Tubi believes entertainment should never be gated by ability to pay; the Lean Canvas of how it operates and earns from advertising rather than fees; and the Empathy Map of who it serves, from cost-conscious Millennial cord-cutters like Maya to the 77% who don't have cable.
The arc · 7 milestones
- 1Saw TV's future
Massoudi foresaw TV channels giving way to apps and ad-supported streaming disrupting the industry. s1s2
- 2The free bet
In 2014 he launched Tubi on a free, ad-supported model with little funding and no recognizable content. s2s3s4
- 3Fighting the skeptics
Capital was hard to raise, but he persisted and built Tubi's proprietary personalization engine. s1s2
- 4Cord-cutters flock in
Free entertainment drew a huge audience, driving over 160 million viewing hours a month. s3s4s5
- 5A giant library
Studio deals built a library dwarfing Netflix's, passing 1,000 advertisers and Fortune 100 brands. s2s3s4s8
- 6Sold to Fox
In 2020 Fox acquired Tubi for about $440 million, validating the vision at $150M revenue. s5s7s8
- 7Toward $1 billion
Now 100M+ monthly users and 10B hours streamed, Tubi nears $1B in ad revenue as Fox's streaming answer. s6s7s8
Now the fuller story, drawn beat by beat↓
01 / 10
Once upon a time...
Farhad Massoudi watched as advertisers shifted their media spending to digital platforms and saw the future taking shape. He believed that TV channels would ultimately be replaced with TV apps, and that TV advertising would be completely disrupted in that process. Before most people could even imagine it, he envisioned a world where streaming technology would democratize entertainment.
“I thought that TV channels ultimately were going to be replaced with TV apps, and in that process, TV advertising will be completely disrupted.”
s1
02 / 10
Every day...
Massoudi worked on his earlier venture, AdRise, learning the intersection of advertising technology and media. But he kept returning to his bigger vision: that television itself was about to be fundamentally transformed, and someone needed to build the bridge between Silicon Valley's technology prowess and Hollywood's content.
s1s2
03 / 10
One day...
In 2014, Massoudi decided to enter the streaming wars with a bold idea—offering premium television and movies for free through advertising. He had long odds and little financing, with no ability to license recognizable content initially. The library had no recognizable movies, few recognizable actors. Yet he launched anyway, betting everything on a free, ad-supported model that almost no one believed would work.
“No recognizable movies, few recognizable actors.”
s2s3s4
04 / 10
Because of that...
The early days were brutal. Raising capital proved extremely difficult because investors simply did not believe TV would be disrupted. Massoudi faced skepticism at every turn, pitching a technology-first streaming service in a world that still saw television as untouchable. But he persisted, building Tubi's proprietary content personalization engine to reach a mass audience with individualized and tailored content.
“I have to say, it was really hard to raise money for it. In the early days, people didn't believe TV would be disrupted.”
s1s2
05 / 10
Because of that...
As a free, ad-supported streaming service, Tubi attracted cord-cutters looking to save money—even with its initially limited library. Massoudi's insight proved correct: there was a massive audience hungry for accessible entertainment who didn't want to pay subscription fees. Users began spending over 160 million hours per month watching content on the service, and the platform became one of the first and largest free on demand streaming services in the United States.
s3s4s5
06 / 10
Because of that...
Tubi's viewership grew, and so did its advertising business. Four years after launch, the company surpassed 1,000 advertisers. Massoudi built relationships with Hollywood studios, networks, and production companies including Lionsgate, MGM, and Paramount, compiling a streaming library roughly 5-6 times the size of Netflix's—over 250,000 TV episodes and movies, along with 250 live channels. A majority of Fortune 100 brands now advertise on the platform.
s2s3s4s8
07 / 10
Until finally...
In 2020, Fox Corporation validated Massoudi's vision by acquiring Tubi for approximately $440 million in net cash consideration. At the time, Tubi was bringing in $150 million in revenue with a younger-skewing, multicultural user base that was directly connected and highly engaged. The acquisition underscored Fox's long-term strategic initiatives to broaden and enhance its direct-to-consumer digital reach and engagement.
s5s7s8
08 / 10
And every day after that...
Tubi continues to grow at a remarkable pace. The platform surpassed 97 million monthly active users and streamed over 10 billion hours during the 2024 calendar year. Fox recently projected Tubi will bring in $1 billion in full-year revenue. Over thirty-four percent of Tubi viewers are between the ages of 18-34, over half are Gen Z or Millennials, and nearly half are multicultural—77% report not having cable. Tubi generates revenue solely through advertising, only making money when users are actively watching content.
“We only make money when you are watching actively, because we only make money on advertising.”
s6s7s8
09 / 10
Reflection / realization
Massoudi's founding insight—that TV channels would be replaced with TV apps and advertising would be completely disrupted—has proven prescient. By staying true to a free, ad-supported model when subscription services dominated the conversation, he built something different: a technology-first platform that prioritizes engagement through its massive library rather than focusing on premium original content. The company expects to cross $1 billion in annual revenue in the coming quarters, though it remains unprofitable as it prioritizes growth.
s1s8
10 / 10
The journey today
Today, Tubi stands as Fox's main answer to streaming and boasts 100 million monthly active users with a growing audience of millennial and Gen Z viewers. What began as a seemingly impossible bet—launching a free streaming service with no recognizable content and skeptical investors—has become the largest free on demand and streaming service in the United States. Massoudi successfully bridged the gap between Silicon Valley and Hollywood, proving that technology, personalization, and a deep understanding of an underserved audience could disrupt even the most entrenched industries.
s2s3s7
Act Two
Why it exists
Start at the belief at the center — then the circle zooms out through the method and the offer.
WHY
Tubi exists to make premium entertainment accessible to everyone, for free. Massoudi founded the company on the belief that the shift from TV channels to TV apps would democratize access to content, enabling anyone—especially cord-cutters and younger, diverse audiences—to enjoy high-quality movies and shows without the barrier of subscription fees. At its core, Tubi believes entertainment should not be gated by ability to pay.
s1s2s4s6
HOW
Tubi differentiates itself through technology-first engineering and a proprietary content personalization engine that tailors an enormous library to individual viewers. Instead of competing on premium original content like subscription services, Tubi built one of the largest streaming libraries—roughly 5-6 times the size of Netflix's—and uses sophisticated algorithms to help each user discover what they want to watch. The company forged partnerships with major Hollywood studios including Lionsgate, MGM, and Paramount to assemble over 250,000 TV episodes and movies across all genres, then deployed machine learning to surface the right content to the right viewer at the right time.
s2s3s8
WHAT
Tubi is a free, ad-supported video on demand (AVOD) streaming platform offering over 250,000 TV episodes and movies plus 250 live channels—a library roughly 5-6 times larger than Netflix's. The service generates revenue solely through advertising, not subscriptions. Launched in 2014 by Farhad Massoudi, Tubi grew to 100 million monthly active users streaming over 10 billion hours in 2024, and was acquired by Fox Corporation in 2020 for approximately $440 million. The platform expects to cross $1 billion in annual revenue in the coming quarters.
s2s3s5s6s7s8
Act Three
Who it serves
Step into one customer’s world — the person the whole business is built around.
Meet
Maya
26-year-old digital marketing coordinator
A cost-conscious Millennial cord-cutter who streams content on multiple devices and values variety over premium originals. She represents Tubi's core demographic: younger-skewing (18-34), multicultural, and part of the 77% who don't have cable.
What they SEESees
Sees 250,000+ episodes and movies plus 250 live channels, personalized picks, and Fortune 100 brand ads while watching.
from the empathy map
- Sees over 250,000 TV episodes and movies available in Tubi's library, along with 250 live channels s3s8
- Sees personalized content recommendations tailored to her viewing preferences through Tubi's technology-first approach s2
- Sees advertising from major Fortune 100 brands while watching content, reflecting mainstream advertiser adoption s4
What they HEARHears
Hears that Fortune 100 brands advertise here, that Tubi topped 97 million users as America's largest free service, and that Fox bought it for $440 million.
from the empathy map
- Hears about Fortune 100 brands advertising on Tubi, signaling the platform's legitimacy and mainstream appeal s4
- Hears that Tubi surpassed 97 million monthly active users and is the largest free streaming service in the United States s3s6
- Hears that Fox Corporation acquired Tubi for $440 million, validating the platform's value and stability s5s7
What they SAYSays
Calls herself a cord-cutter saving money without losing access, and tells friends about the huge library that's free.
from the empathy map
- Says she's a cord-cutter looking to save money on entertainment without sacrificing access to content s4s6
- Tells friends about the massive content library available for free, emphasizing Tubi's value proposition s2s3
What they DODoes
Streams 160M+ hours monthly, cuts the cable cord like 77% of viewers, and browses 250,000+ titles across all genres.
from the empathy map
- Watches over 160 million hours per month of content on Tubi, showing high levels of active engagement with the free streaming platform s5
- Cuts the cable cord to save money, with 77% of Tubi viewers reporting they do not have cable s6
- Browses through Tubi's massive library of over 250,000 TV episodes and movies across all genres to find content that matches their interests s2s8
Act Four
How it makes money
The business model in seven moves — each one drawn, each one cited.
Problem & customer 1 / 7
Young, diverse cord-cutters — over a third aged 18-34, nearly half multicultural — carry one burden: premium streaming costs too much, and 77% have already abandoned cable.
Problem
The pain in the market
- Consumers face high costs for premium streaming content through subscription-based services, driving cord-cutters to seek affordable alternatives s4
- Traditional TV advertising is being disrupted as TV channels are replaced with TV apps and advertisers shift media spending to digital platforms s1
- 77% of Tubi viewers report not having cable, indicating a significant market of consumers who have abandoned traditional cable subscriptions s6
Customer
Who lives with that pain
- Cord-cutters looking to save money on entertainment without subscription fees s4
- Young, diverse audiences: over 34% of viewers are ages 18-34, over half are Gen Z or Millennials, and nearly half are multicultural s6
- Advertisers seeking to reach younger, digitally-engaged audiences, with a majority of Fortune 100 brands now advertising on the platform s4
Value & solution 2 / 7
Premium TV and movies for free: America's largest free on-demand service delivers over 250,000 episodes and movies plus 250 live channels, ad-supported and personalized by a proprietary engine — a library 5-6x Netflix's.
Unique value proposition
The belief the brand is built on
- Premium television and movies for free: the largest free on-demand streaming service in the United States with over 250,000 TV episodes and movies s2s3
- A streaming library roughly 5-6 times the size of Netflix's, providing massive content selection without subscription costs s3s8
- Technology-first platform using proprietary content personalization engine to deliver individualized and tailored content to mass audiences s2
Solution
How that belief reaches the market
- Ad-supported video on-demand (AVOD) platform offering over 250,000 TV episodes and movies plus 250 live channels completely free to users s3s8
- Proprietary content personalization engine that reaches mass audiences with individualized content recommendations, prioritizing engagement over premium originals s2s8
- Partnerships with Hollywood studios, networks, and production companies including Lionsgate, MGM, and Paramount to compile one of the largest content libraries across all genres s2
Channels 3 / 7
Reaches viewers direct-to-consumer over-the-top across web and apps, amplified by Fox's distribution ecosystem since 2020 and organic word-of-mouth among cord-cutters.
- Direct-to-consumer over-the-top (OTT) streaming service accessible via web and apps across devices s2
- Fox Corporation's distribution network and media ecosystem following the 2020 acquisition, enhancing direct-to-consumer digital reach s5s7
- Organic growth through word-of-mouth among cord-cutters and younger audiences seeking free streaming alternatives s4s6
Revenue 4 / 7
Earns advertising revenue only while users watch, never charging subscriptions — scaling from $150 million at Fox's 2020 acquisition toward an expected $1 billion, across 1,000+ advertisers.
- Advertising revenue generated only when users are actively watching content, with no subscription fees charged to consumers s8
- Revenue grew from $150 million at the time of Fox's 2020 acquisition to an expected $1 billion in annual revenue in the coming quarters s7s8
- Advertising partnerships with over 1,000 advertisers, including a majority of Fortune 100 brands s4
Costs 5 / 7
Runs on content licensing with Hollywood studios for 250,000+ titles plus technology for its personalization engine — staying unprofitable by design, prioritizing growth even near $1 billion in revenue.
- Content licensing costs for partnerships with Hollywood studios, networks, and production companies to build a library of over 250,000 titles s2s8
- Technology infrastructure and development costs for the proprietary content personalization engine and streaming platform s2
- Company remains unprofitable as it prioritizes growth over profitability despite approaching $1 billion in annual revenue s8
Key metrics 6 / 7
97-100 million monthly active users in 2024 and over 10 billion hours streamed prove it works, alongside 6-7x revenue growth and 1,000+ advertisers.
- 97-100 million monthly active users as of 2024, demonstrating significant scale and reach s6s7
- Over 10 billion hours of content streamed in 2024, up from over 160 million hours per month in earlier years, indicating rapid growth in engagement s5s6
- Revenue trajectory from $150 million at acquisition in 2020 to expected $1 billion annually, representing 6-7x growth s7s8
- Over 1,000 advertisers with majority of Fortune 100 brands on the platform s4
Unfair advantage 7 / 7
A first-mover AVOD from 2014, powered by a proprietary personalization engine bridging Silicon Valley and Hollywood, backed by Fox and a library 5-6x Netflix's that new entrants can't replicate.
- First-mover advantage as one of the first ad-supported video on-demand (AVOD) services when it launched in 2014 s3
- Proprietary content personalization engine built as a technology-first platform, bridging Silicon Valley and Hollywood s2
- Fox Corporation ownership and strategic backing since 2020 acquisition, providing distribution, resources, and long-term strategic support s5s7
- Massive content library 5-6 times the size of Netflix's, with established studio partnerships that would be difficult for new entrants to replicate s2s3s8
Every claim, tethered to a real source
- s1VCs Are Looking for Entrepreneurs With Big Ideas: Tubi's Farhad Massoudi – Beet.TV — https://www.beet.tv/2021/07/vcs-are-looking-for-entrepreneurs-with-big-ideas-tubis-farhad-massoudi.html
- s25 Questions With Farhad Massoudi, Founder and CEO of Tubi - TheWrap — https://www.thewrap.com/5-questions-farhad-massoudi-founder-ceo-tubi/
- s3Tubi – Data-Driven Streaming Movies and TV - Cota Capital — https://www.cotacapital.com/founder-stories/tubi-free-data-driven-streaming-movies-and-tv/
- s4How Tubi built a billion-dollar business with B-movies - SF Standard — https://sfstandard.com/2026/09/23/tubi-streaming-success-story/
- s5Fox Corporation to Acquire Tubi - SEC Filing 8-K — https://www.sec.gov/Archives/edgar/data/1754301/000119312520076153/d902555dex991.htm
- s6Tubi Surpasses 97 Million Monthly Active Users - Fox Corp Investor Relations — https://investor.foxcorporation.com/news/business/2025/tubi-surpasses-97-million-monthly-active-users-and-10-billion-streaming-hours-in-2024/
- s7Free streaming service Tubi is rivaling major players - CNBC — https://www.cnbc.com/2025/12/24/tubi-fox-streaming-free.html
- s8'We only make money when people watch,' Tubi's CEO on strategy - NewscastStudio — https://www.newscaststudio.com/2024/12/09/we-only-make-money-when-people-watch-tubis-ceo-on-strategy-streaming-marketplace/