Sometimes, suddenly, there’s a new game in town. A competitor comes into an existing space, with a different business model, and wins over a lot of new customers – and many of them are yours.
Like when Netflix arrived with a new value proposition of commercial-free programming. And cable TV customers – tired of flicking through ads – flocked towards them, willing to pay a monthly fee for the privilege.
And now here comes Tubi, an ad-supported streaming service. For free.
Giving People What They Want
While it doesn’t offer Netflix’ amazing original content, Tubi does offer 250,000 movies and TV episodes from different Hollywood studios, live news and sports, as well as original content. It’s like going back to when I was a kid, when we had free TV channels with commercials – only there’s more to watch.
And they’re not just attracting an older demographic who remember the good old days. Turns out, young, diverse Gen Z and Millennials like the style and quality of ‘nostalgia-watching’ programs – and the price tag.
Clearly, people are tuning in to this value: Tubi is now available in 11 different countries, on more than 25 streaming devices, and has outstripped the competition.
A Compelling Value Proposition
Because I started my career in the advertising industry and appreciate watching great marketing and commercials from a strategic/learning lens, at this point in my life, when I’m trying to relax and watch a show, I’m happy to pay a premium not to be interrupted.
But, as Tubi’s success shows, watching a few commercials isn’t a problem for a lot of people. No surprise, as people are looking for value for their hard-earned money, and constantly evaluate, question and calculate costs to get the right fit for their family.
That makes free entertainment an appealing value proposition.
No Such Thing as Perfection
It’s fascinating to watch this evolution.
It reminds us that there’s no perfect business model nor perfect customer experience,
And it reinforces that people can become fatigued with any offering, over time, and be open to something new.
Then, someone, somewhere, will come along with another business model.
Just like Tubi, whose time has come.
The Challenge
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- If you think of yourself as Netflix, who has built a growing and thriving business, who could be the potential version of Tubi?
- If you were to create your own Tubi, how can you find an alternate way to give your customers what they want?
Other Blogs
- Are You Obsessed with Your Customers?
- How to Keep Customers Happy by Anticipating Their Needs
- Bigger vs Better: What is Real Growth?
Older Podcasts
- If We Bought Twitter: Things to Consider when Acquiring a Business
- Fire Bullets Before Cannonballs: Jim Collins’ Method for Validating Ideas
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