• by Wayne Friedman , November 19, 2015

Continuing a trend for big TV/movie companies looking to invest and/or partner in digital online video streaming, Metro-Goldwyn-Mayer Studios and Lionsgate have become equity partners in the parent company of Tubi TV, an ad-supported, free-streaming video service.

As part of the deal, both studios will get a percentage of advertising revenues. Total financing for the latest round of financing for Tubi TV, which includes other investors, comes to $6 million for the one-year-old streaming service.

Premium library MGM and Lionsgate titles to Tubi TV will include “Midnight Cowboy,” “Crash,” “Rain Man,” “The Hurt Locker,” “Pink Panther,” “Fargo” and “American Psycho.”

Tubi TV is owned by adRise, a company that starts up branded VOD apps. It is streamed on Chromecast, Roku, Fire TV, Xbox and the new Apple TV.

San Francisco-based Tubi TV did a content deal with Paramount Pictures back in March. Paramount titles in the deal included: “Top Gun,” “Basic Instinct,” “Total Recall” and “Star Trek: The Final Frontier”. As part of that deal, Paramount will receive a percentage of advertising revenue.

Farhad Massoudi, founder/chief executive officer of Tubi TV, stated: “Tubi TV’s mission is to make premium content accessible to everyone, everywhere, without having to pay more. Tubi TV will always be free.”

Tubi TV has over 40,000 titles, and its other investors include Cota Capital, Foundation Capital, Mark Amin, Bobby Yazdani, Noosheen and Zod Nazem.

In the release, the company also notes that former Fox Television Entertainment Group Chairman Sandy Grushow — who had been on Tubi TV’s advisory board — has joined the board of directors.