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Fox has a successful streaming brand in Tubi. So why is it launching another video app? - MarketWatch

1. Tubi’s free streaming service grew to 97M monthly users. Its success highlights robust audience engagement. 2. The Super Bowl simulcast garnered 15.5M viewers, marking record streaming achievements. The event enhanced Tubi’s profile. 3. Fox plans to launch a new streaming platform later this year. The move aims to leverage Tubi’s subscriber base for premium content. 4. Fox may bundle streaming services to capture cord cutters and cord-nevers. The strategy targets long-term direct-to-consumer growth.

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FAQ

Why Bullish?

Fox’s renewed focus on streaming, with Tubi’s impressive growth and the planned new platform, suggests potential revenue expansion. Historical examples like Peacock’s NFL streaming success indicate such strategic moves can boost subscriber bases, which may drive FOXA’s stock higher despite execution risks.

How important is it?

The news is important as it underscores Fox’s strategic response to streaming trends and its use of a proven asset (Tubi) to capture new audiences; however, competitive pressures and execution risks keep the immediate impact moderate.

Why Long Term?

The new platform and bundling strategy indicate a shift in Fox’s DTC approach that will unfold over several years, impacting revenue and market positioning in the competitive streaming space.

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