As we know, free ad-supported TV streaming channels (FAST) channels are not a new concept; AVOD has been for some time, and by 2025, it is anticipated that over $25 billion will have been spent on advertising in this sector. By utilizing dynamically inserted advertising to deliver linear channels to connected devices, FAST expands the selection of ad-supported video content and makes it available for free to anybody who wants to watch.
According to a recent analysis from Comcast Advertising that indicated FAST channel adoption among homes has more than doubled year-over-year, FAST are starting to have a significant impact on the TV ad landscape.
Streaming video services have a growing taxonomy. In the past, the industry was divided between AVOD services, also known as ad-supported services, like YouTube, and subscription-based services, like Netflix’s SVOD service, which offer videos for customers to watch on demand. Then, virtual multichannel video programming distributors (vMVPDs) such as Sling TV and YouTube TV emerged.
These companies provide pay-TV services and are essentially no different from cable or satellite TV providers other than the fact that users can stream these services via the internet as opposed to a set-top box. However, since the past couple of years, we see a growing class of streaming video services that do not cleanly fit into any of the aforementioned categories. Let’s break down what FAST Channels stand for.
What do you mean by FAST
The term “FAST” refers to a service that offers TV channels or streams that are typically free for viewers to watch without a subscription. They don’t need specialized gear, and they are funded by advertising money.
FAST enables live linear programming, such as a sports game, news program, or studio show, unlike ad-based video-on-demand (AVOD). OTT and FAST platforms can supplement some companies’ subscription, broadcast, and pay TV offerings while serving as their main method of distribution for others.
The types of FAST services
There are two primary categories of FAST services –
Platform Agnostic: These are platforms that work with different operating systems. Roku, Xumo, and Pluto TV are a few examples.
Platform Exclusive: These are systems that are only accessible through a single operating system. LG, Samsung TV+, and Vizio Watchfree are a few examples.
What is the role of Content Distributors in FAST Channels
Distributors of content can boost the exposure of their content library and the reach of their brands by using FAST channels. In an effort to get into the market, several content distributors, big and small, have been utilizing their older libraries of content to create specialty channels. In some cases, these channels have been launched in conjunction with significant world events, sporting events, or other popular topics.
You can create these additional channels using the content in your current SVOD or AVOD libraries. Some channel creators are even making channels out of short-form content that would typically be delivered over platforms like YouTube and using it on FAST channels because they can expand their library of personalized channels and because the channels can be made quickly and easily with the right channel origination platform.
FASTs increase the audience for your content portfolio and increase the number of subscribers since more personalized content results with better user experiences. More content producers are creating specialty FAST channels out of their older content collections as a means of generating income and increasing the number of people who subscribe to premium content.
FAST streaming on connected devices and growth rates
The majority of FAST channel viewing occurs on connected devices like Chromecast sticks, Samsung Smart TVs, and Roku boxes. This is significant because smart TVs and streaming sticks/boxes account for the majority of viewing time.
According to Conviva’s most current state of streaming report (Q1 2022), 77% of total viewing time is spent on a large screen. Smart TV viewing time increased by 34%, while PC and gaming console viewing time decreased by 15% from Q1 2021. This number will only continue to grow.
At the time of publication, Strategy Analytics predicted that 80% of North American households will have at least one Smart TV by 2026, it is anticipated that 50% of all households will have a Smart TV. Whether they designed the capability themselves or partnered with a third party, all TV makers provide Smart TV technology as a standard feature. This allows them to seize some of the monetization opportunities that they had previously been unable to.
Evolution of FAST-Linear TV Streaming
The main reason why people are so intrigued by FAST channels is, indeed, the good viewer perception. It will soon grow in size and show observable evidence of improvement in the FAST TV experience. When a viewer simply wants to enjoy themselves, without having to spend too much time selecting what to watch, having easy access to the FAST channel works great.
How FASTs are fostering innovation is another change in the FAST linear TV experience. A sizable content repository can draw in new viewers who are anxious to watch what has been hidden away.
How launching a FAST Channel would get you additional revenues
FAST channels have the potential to generate both ad income and increase the number of subscribers to premium content. Utilizing data effectively is crucial for funding FAST channels. By utilizing user data, video service providers can send customized advertisements to users, increasing revenue while also improving the relevance and enjoyment of streaming for viewers.
Whether you already operate an OTT SVOD platform or a YouTube channel, you can diversify your revenue streams by implementing new business models or raising the number of ad impressions. You can reach new audiences and increase the number of views for your video material by using a FAST channel.
FAST channels can also be used as a great marketing tool for promotion & engagement of your products and services.
Go FAST with Gizmott
We have got just what you need from data-backed insights into audience behavior and content performance, to thrive in this fiercely competitive FAST provider market.
You can rely on us as your one-stop broadcast team to handle all of your channel creation, distribution, and monetization needs, with agility and technical brilliance that has been demonstrated time and time again.
If you are a content distributor or content creator and you are thinking of launching your own FAST channel, Gizmott can help you successfully implement your FAST business strategy as your strategic technology and business partner. Contact us to learn more at info@gizmott.com.
