Free streaming service Tubi TV grabs $20 million in new funding

San Francisco-based Tubi TV has raised an extra $20 million for its advertising-supported streaming service for TV and films. Traders within the spherical are betting on the truth that the following massive streaming competitor gained’t be a direct rival to Netflix and others with a subscription-based enterprise mannequin, however reasonably a free service that provides all kinds of titles without cost viewing.

The Collection B spherical was led by Jump Capital, and consists of participation from Tubi TV’s Collection A investor Foundation Capital, in addition to Danhua Capital and Cota Capital. With this present spherical, the corporate’s complete increase to this point is $34 million.

Launched in 2014, Tubi TV at this time has 200 content material companions, together with Lionsgate, MGM, Paramount Footage, Starz and others, bringing its catalog of reveals and films to over 50,000 titles. Nonetheless, not all titles can be found at any given time — the choice is rotated and up to date to make the content material really feel contemporary.

The corporate additionally claims hundreds of thousands of customers, and 9x development in month-to-month lively customers in 2016, in contrast with the yr earlier than.

The titles on Tubi TV aren’t essentially the most well liked, or most in-demand new releases, however embody plenty of big-name hits from years previous. For instance, the app’s featured choice proper now consists of the 2000 movie “Gladiator,” 1991’s “The Silence of the Lambs,” 2011’s “Younger Grownup,” 2010’s “True Grit” and 2008’s “Revolutionary Street,” amongst others.

However for Tubi TV’s focused viewers — millennial viewers — these motion pictures will not be new, however they’re new to them. Youthful millennials, for instance, have been born within the mid-1990s or early 2000s — they might not even have been round when these movies have been launched, or have been far too younger to look at them. However a few of these basic motion pictures maintain up over time, and can discover a new viewers on Tubi TV.

Past the extra well-known movies, Tubi TV additionally companions with smaller, area of interest studios around the globe, like anime and animation-focused Viz Media. Due to its quite a few partnerships, the service’s library stretches throughout quite a lot of genres, like anime, worldwide movies and TV (e.g. Korean, Chinese language and British TV), horror, sci-fi, fantasy, motion, thrillers, drama, romance, actuality TV, stand-up comedy, documentaries, docu-series, classics, cartoons, children’ reveals, martial arts, indie and extra.

As well as, whereas millennials are sometimes stated to have an aversion to adverts, a Nielsen study discovered that the massive majority of them — 75 p.c of these 18 to 34 — are nice with adverts so long as the content material is free. (For a era raised on YouTube, this isn’t actually a stunning metric.)

Tubi TV delivers on that promise of free content material, and claims its promoting is user-friendly, as properly.

“We care very a lot concerning the consumer expertise and attempt to copy the TV viewing expertise that viewers are acquainted with, however with considerably fewer interruptions,” says Tubi TV founder and CEO Farhad Massoudi. “Usually, we’ll present about Four-5 minutes of commercials for each 30 minutes of content material,” he notes.

A number of the advertisers have included Fox, Paramount, Unilever, Nationwide, Pizza Hut, Chrysler/Fiat Group, BMW, Military, Marines, Amazon and Intercontinental Lodges. Adverts are priced relying on the marketing campaign aims, however the firm wouldn’t present particulars on charges.

Massoudi additionally says his firm is near profitability, however didn’t supply income specifics — saying as a substitute that the spherical will assist Tubi TV concentrate on development as a substitute of short-term profitability.

Tubi TV will use the brand new funds for scaling the enterprise and hiring — together with engineers, product managers and knowledge scientists. It’s going to additionally fund advertising initiatives and its in-house TV analytics platform, which helps to higher perceive what folks need to watch and when.

Tubi TV has developed a customized analytics platform for TV that enables it to A/B check and run deep knowledge mining on “every bit of content material, product initiative and advert expertise,” explains Massoudi. This expertise permits the corporate to repeatedly optimize the consumer expertise, together with content material curation and advert concentrating on.

Tubi TV at this time is accessible on nearly all platforms, together with net, cell apps, sport consoles and streaming gamers.