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This outperformance can be attributed to the company’s commitment to providing quality content to as many people as possible, which is expected to aid long-term growth.
This Zacks Rank #3 (Hold) company’s commitment to expansion is carried forward by Tubi’s official launch in the United Kingdom, with a vast library of more than 20,000 movies and TV episodes on-demand. With a successful track record in North America, Tubi has gained nearly 80 million monthly active users and is recognized as the fastest-growing U.S. streaming service. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The content library includes a mix of popular Hollywood films, modern British classics and diverse international genres, such as Bollywood, Nollywood and Arthouse Cinema. Tubi's platform is designed to enhance content discovery through sophisticated machine-learning algorithms that provide personalized viewing experiences.
With a 100% free ad-supported model, Tubi ensures a seamless user experience with easy onboarding and minimal ad interruptions. Viewers in the United Kingdom will soon be able to access Tubi on major connected TV platforms, iOS and Android smartphones, and the web, enjoying a broad range of content without subscription fees.
Tubi to Face Tough Competition in the UK Streaming Market
Tubi is set to face tough competition from online streaming platforms like Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) Prime and Disney (DIS - Free Report) , which saw significant growth in the United Kingdom, with a notable surge in subscribers during the Covid-19 lockdowns. However, this trend reversed as U.K. households began facing a cost-of-living crisis, leading to a decline in subscriber numbers for the first time.
According to a report by Uswitch, from 2018 to 2023, online streaming revenues in the United Kingdom more than doubled, rising from $1.24 billion (£0.98 billion) to $3.11 billion (£2.47 billion). However, this growth rate is projected to slow, with an anticipated increase of 48.6% by 2028.
In 2023, SVoD penetration in the United Kingdom fell for the first time by 2.94%, with Netflix experiencing a one percentage point decline in users. Amazon Prime Video saw the most substantial growth, with its subscriber base increasing more than tenfold (+1,025%) from 2013 to 2023 compared with Netflix's 268% growth. Despite entering into the market in 2021, Disney Plus rapidly expanded, reaching 25% of U.K. households by 2023, up from 17%.
FOX's Tubi has entered into a market that is still growing. Tubi, with its diverse content offerings and ad-supported model, can make a niche audience for itself.
Conclusion
Fox’s expanding reach and diverse content is a major positive, which bodes well for the long-term growth of the company.
Decreasing operating expenses also bodes well for the long-term profitability of the company.
In third-quarter fiscal 2024, operating expenses decreased 24.8% year over year to $2.05 billion. As a percentage of revenues, operating expenses contracted 730 basis points to 59.5%.
The Zacks Consensus Estimate for FOXA’s fourth-quarter fiscal 2024 earnings per share is pegged at 85 cents per share, which has remained unchanged in the past 60 days. The consensus mark for fiscal 2024 earnings is pegged at $3.33 per share, which has increased 15 cents in the past 60 days.
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Fox's (FOXA) Tubi Expands Its Reach in the UK Streaming Market
Fox (FOXA - Free Report) has gained 15% year to date against the Zacks Consumer & Discretionary sector’s decline of 1.7%.
This outperformance can be attributed to the company’s commitment to providing quality content to as many people as possible, which is expected to aid long-term growth.
This Zacks Rank #3 (Hold) company’s commitment to expansion is carried forward by Tubi’s official launch in the United Kingdom, with a vast library of more than 20,000 movies and TV episodes on-demand. With a successful track record in North America, Tubi has gained nearly 80 million monthly active users and is recognized as the fastest-growing U.S. streaming service. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The content library includes a mix of popular Hollywood films, modern British classics and diverse international genres, such as Bollywood, Nollywood and Arthouse Cinema. Tubi's platform is designed to enhance content discovery through sophisticated machine-learning algorithms that provide personalized viewing experiences.
With a 100% free ad-supported model, Tubi ensures a seamless user experience with easy onboarding and minimal ad interruptions. Viewers in the United Kingdom will soon be able to access Tubi on major connected TV platforms, iOS and Android smartphones, and the web, enjoying a broad range of content without subscription fees.
Tubi to Face Tough Competition in the UK Streaming Market
Tubi is set to face tough competition from online streaming platforms like Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) Prime and Disney (DIS - Free Report) , which saw significant growth in the United Kingdom, with a notable surge in subscribers during the Covid-19 lockdowns. However, this trend reversed as U.K. households began facing a cost-of-living crisis, leading to a decline in subscriber numbers for the first time.
According to a report by Uswitch, from 2018 to 2023, online streaming revenues in the United Kingdom more than doubled, rising from $1.24 billion (£0.98 billion) to $3.11 billion (£2.47 billion). However, this growth rate is projected to slow, with an anticipated increase of 48.6% by 2028.
In 2023, SVoD penetration in the United Kingdom fell for the first time by 2.94%, with Netflix experiencing a one percentage point decline in users. Amazon Prime Video saw the most substantial growth, with its subscriber base increasing more than tenfold (+1,025%) from 2013 to 2023 compared with Netflix's 268% growth. Despite entering into the market in 2021, Disney Plus rapidly expanded, reaching 25% of U.K. households by 2023, up from 17%.
FOX's Tubi has entered into a market that is still growing. Tubi, with its diverse content offerings and ad-supported model, can make a niche audience for itself.
Conclusion
Fox’s expanding reach and diverse content is a major positive, which bodes well for the long-term growth of the company.
Decreasing operating expenses also bodes well for the long-term profitability of the company.
In third-quarter fiscal 2024, operating expenses decreased 24.8% year over year to $2.05 billion. As a percentage of revenues, operating expenses contracted 730 basis points to 59.5%.
The Zacks Consensus Estimate for FOXA’s fourth-quarter fiscal 2024 earnings per share is pegged at 85 cents per share, which has remained unchanged in the past 60 days. The consensus mark for fiscal 2024 earnings is pegged at $3.33 per share, which has increased 15 cents in the past 60 days.