Steve Tom told an investor conference, as he asked Tubi to eventually produce original content and a change to lifestyle programming on the Fox News Channel.
Fox Corporation chief financial officer Steve Tomic predicts ad revenue from his company’s Tubi streaming service that will soon surpass advertising revenue generated from its linear Fox broadcast entertainment network.
Tom told a Deutsche Bank Media, Internet, and Telecom conference during a virtual session on Tuesday that Tubi was expected to generate approximately $ 300 million in advertising revenue during Fox Corp’s current fiscal year. “Over time, you will see Curves Cross where we will exceed the advertising revenue generated on Tubi by the advertising revenue generated on the broadcast entertainment network,” Tomasic predicted.
He was quick to point out to the broadcast network’s advertising revenue that he excluded from the sale of live sports advertising, and was re-charged to the entertainment network. And Tom expected Fox Corp to prevail in its congested subscription streaming arena dominated by Netflix with Tubi, with its ad-supported streaming focus, where viewers pay a premium to watch TV rentals without advertising.
To drive future growth for Tubi, Tomasic said his company was focused on total viewing time, which has grown, as it would feed into higher advertising revenue over time. Currently, Tubi relies on revenue-sharing deals with programming partners. Tommy went on to say that Tubi would license more film and TV series products, and eventually create the original series for the streaming service. “But I think it would be cost-effective,” he said.
Looking at viewer consumption on Tubi, Tomic said that the original would not be produced at budget levels set for scripted series on rival platforms such as Netflix and Hulu. Instead, he said that Tubi would produce “cheap and cheerful titles” for the AVOD platform. On the expense side, Tommy stated that programming investment for Tubi would increase after the cost and revenue for the streaming platform were largely equal. “This is not the intention of the business.
He said that we intend to invest fully in the development of the business and you should expect that we will be at a loss in the last part of the financial year as well as in future years. Tomic also said that Fox Corporation would invest in more non-news programming for Fox News Channel’s assets on the expansion of the digital platform. This would include history and lifestyle programming and developing new video projects for the Fox Nation streaming service of “high profile news programming” channels such as Fox News primetime host Tucker Carlson.
“Just with the announcement of the same, we have increased the level and consumption levels of Fox Nation,” said Tomsik. Fox Nation initially launched as a hub for conservative commentary and as a venue for Fox Superfans but has recently shifted its focus to lifestyle programming, including cooking shows, travel programming, And even Christmas movies.