Tubi
Free ad-supported streaming service offering movies and TV shows across multiple genres.
PE-OWNED
Acquired by Ares Management2019-01-01
What Made It Great
Free streaming platform with extensive content library and growing user base
What PE Will Likely Do
Tubi will likely see significant cuts to its content library as Ares Management seeks to reduce licensing and content acquisition costs
Tubi may start introducing pre-roll and mid-roll advertisements at a higher frequency to drive up ad revenue
Tubi's user experience is likely to degrade as the company reduces investment in platform development and engineering talent
Tubi may start limiting access to its full content library, introducing a tiered paywall system or restricting access to newer/popular titles
Expected Timeline
“0 to 6 months months”
Acquisition announced, initial promises of 'investment' and 'growth', but first round of content licensing and staff cuts
“6 to 12 months months”
Content library begins to shrink as fewer new titles are added, ad load increases, and platform performance degrades
“12 to 24 months months”
User complaints about content availability, ad frequency, and platform stability increase, Tubi may start limiting access to premium content
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers should expect a gradual decline in Tubi's content library and user experience over the next 12-24 months
Tubi users should be prepared for an increase in advertisements and the potential introduction of a paywall or tiered access to content
Consumers who value access to a wide range of free streaming content may want to consider alternative services as Tubi's offering is likely to deteriorate
Alternatives
Look for family-owned or employee-owned businesses