Tubi TV looking to raise $150 Million in new round of funding: Report
Morning Business Outlook: For the first time in history Americans are expected to spend more time on smart phones and tablets than they will spend watching TV; CVS is creating less retail space in some of their stores to make room for more health care services.
Streaming service Tubi TV is looking to raise $150 million in a new round of funding, two people close to the matter told The Information.
The ad-supported streaming platform has found its niche in the streaming market, differing itself from subscription-based outlets like Netflix and Hulu by offering a free alternative in streaming services.
Launched back in 2014, Tubi TV had previously raised upwards of $35 million last year and operates under an interesting business model; the streaming service licenses “non-exclusive” older movies and television series with a library that includes Oscar-winning films and Emmy Award-winning shows. The company received a $25 million credit line from Silicon Valley Bank earlier this year, as well.
Previous financial backers include the likes of MGM, Lions Gate Entertainment and a handful of venture capital firms.
The streaming service announced back in January that it would be investing $100 million in 2019 for content in its library as well as international expansion after becoming profitable in late 2018 following strong growth in viewership.
Earlier this year, the company announced that the number of hours people spent watching Tubi TV increased four-fold when compared to 2017. In May, it revealed they had 20 million users per month.
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With such market growth, Tubi TV’s position in the world of streaming has attracted the attention of larger corporations, with Viacom considering a deal to acquire them before ultimately purchasing Pluto TV for $340 million.