Revenue from Fox Corp.'s fast-growing ad-supported streaming platform Tubi will soon surpass the revenue generated by Fox's broadcast entertainment network, the company's CFO, Steve Tomsic, predicted during a Deutsche Bank investor conference on Tuesday.
Fox has projected that Tubi will more than double its advertising revenue, to reach about $300 million, during Fox's current fiscal year.
"Over time, you'll see the curves cross where the advertising revenue we earn on Tubi will exceed the advertising revenue we generate on the broadcast entertainment network," he added.
Tomsic was, however, "quick to point out" that the broadcast network’s advertising revenue he was alluding to excluded live sports ad sales, and was relegated to the entertainment networks, noted The Hollywood Reporter.
Fox’s non-cable television segment generated $2.57 billion in revenue in fiscal Q2 ending December 31, 2020.
During Fox's Q2 earnings call in February and again at a Morgan Stanley conference on March 5, CEO Lachlan Murdoch called Tubi a "growth engine" that will become a "billion dollar business" and "core pillar" of the company. Fox, he said, expects "to win in AVOD."
Last month, Tubi launched a multichannel "Free Like Tubi Week" campaign that expands on its first national campaign, "Break Free," launched in January.