Thought the Australian streaming market was getting a little overcrowded? Well, make room for one more.
Ad-supported video on demand (AVOD) provider Tubi has today announced it is launching in Australia this September, marking its first venture outside of North America.
Tubi’s selling point is that it’s free, something it has hilariously mocked competitors over in the US in a recent advertising campaign.
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And while the Netflix trolling certainly makes for a good laugh, Tubi CEO Farhad Massoudi said the Australian market is primed for a new AVOD service.
“Consumers are cutting cords and watching less and less linear TV and traditional TVs and are watching more and more on the net,” Massoudi told B&T.
“I know that’s certainly true for the Australian market and Netflix has been incredibly successful here.
“But the idea of the average household subscribing to Netflix, Amazon, Disney+, HBO and God knows how many other services all at the same time is ludicrous.”
So rather than asking customers to fork out another $10 or so a month, Tubi offsets this fee with ads, making it what Massoudi describes as “the king of AVOD”.
It’s no secret streaming in Australia is an extremely competitive space.
But Massoudi said these paid services operate as an enabler for Tubi, rather than a competitor.
“We complement subscription services with a massive library of content at no additional cost that is personalised,” he said. “And that’s been a very successful strategy for us in the US.”
Tubi recently announced it had over 20 million active monthly users.
Much of Netflix’s success has been built around the success of its premium original content, such as House of Cards and Orange Is the New Black.
Tubi is not in the market to compete with these shows. It’s in the market to give you something to watch when you finish them.
“These are incredible shows,” Massoudi said about Netflix’s premium content. “I watch them, I love them.”
“But the truth is when you look at TV viewership on a daily basis, most view on non-original content.
“So really what we’re going after is amazing TV shows and movies, that may not be an original, but they’re the type of show you want to watch when you get home from work.”
Tubi will launch in Australia with an initial offering of nearly 7,000 movies and television series.
An AVOD option also gives advertisers the opportunity to get in on Australia’s burgeoning streaming market.
Massoudi urged advertisers to move away from traditional TV and think about AVOD.
“TV viewership is declining,” he said. “Through TV campaigns advertisers are reaching fewer and fewer people at a higher average age.”
Tubi reaches a demographic that watches less traditional TV, while also giving advertisers the opporunity to accurately measure and target their campaigns.
He added Tubi had “started the process” of getting Australian brands on board for launch next month.