Why Comcast and Fox Want Ad-Supported Services Like Xumo and Tubi

Companies like Fox and ViacomCBS show interest in AVOD because of familiarity with the business model, analyst Bruce Leichtman says

Ad-supported streaming services (AVODs), once considered the redheaded stepchildren of major subscription streamers like Netflix and Disney+, have suddenly caught the attention of major media companies.

On Tuesday, Comcast acquired Xumo, the ad-supported free streaming service best known for offering 190 channels that are automatically installed on smart TVs from companies like LG and Sony. And Fox, we learned last week, is looking at acquiring ad-supported Tubi, which just passed the 25 million monthly viewer mark, for around $500 million. Comcast is also exploring a deal for Walmart’s Vudu, which has offered ad-supported free streaming since 2016, The Wall Street Journal reported.

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Sean Burch

Tech reporter • sean.burch@thewrap.com • @SeanB44