Fox recently purchased the Tubi streaming service for a price of $440 million USD. With the new acquisition, Fox has joined other industry giants in purchasing a streaming service that relies on ads for revenue. Overall purchasing the Tubi streaming service allows Fox to diversify the content that it offers and move more in the direction of the digital sphere.
In order to free up monetary resources to make the purchase, Fox sold a 5% share that it held in the Roku platform, and Fox spoke about the rationale behind this move, "essentially exchanging a passively held minority investment for full ownership and control of a leadership position in the free ad-supported streaming market."
Ad-Focused Streaming Acquisitions
Fox Purchased the Tubi Streaming Service for $400 Million USD
Trend Themes
1. Ad-supported Streaming Services - The trend of acquiring ad-supported streaming services provides an opportunity for businesses to diversify their content offerings and tap into the growing market of free streaming with advertising.
2. Diversification of Content - Acquiring and integrating diverse content offerings across streaming platforms is a key disruptive innovation opportunity for businesses looking to stay competitive and appeal to a wider range of customers.
3. Shift to Digital Media - The shift towards digital media consumption provides an opportunity for businesses to invest in streaming services in order to keep up with changing consumer preferences.
Industry Implications
1. Media and Entertainment - Acquiring ad-supported streaming services is a key disruptive innovation opportunity for media and entertainment companies looking to adapt to the changing landscape and diversify their content offerings.
2. Advertising - The growing market for ad-supported streaming services presents a disruptive innovation opportunity for advertising companies to reach a wider audience and maximize revenue through targeted advertising.
3. Technology - Investing in streaming services and building innovative technology platforms to support them is a key disruptive innovation opportunity for technology companies looking to capitalize on the shift towards on-demand digital media consumption.