Subscription Video On-Demand (SVOD) is a streaming model where viewers pay a subscription fee to access a library of video content on demand. This year, it is projected to generate a worldwide revenue of $119 billion. Advertising Video-on-Demand (AVOD), a model in which viewers watch content on-demand for free in exchange for watching ads, follows suit with an anticipated global revenue of $55 billion for 2025, indicating that ad-supported models are gaining steam.
Meanwhile, FAST, which is becoming increasingly popular among viewers, is predicted to generate a global revenue of $10.39 billion in 2025. Amagi’s "Global FAST Report Edition 14" highlights this fact. The data and insights from ~3,300 channels distributed via Amagi’s ad insertion platform reveal that FAST grew significantly YoY, with a 65% uptick in ad impressions and a 95% increase in Hours of Viewing (HOV). These numbers further emphasize the growing inclination of viewers and content owners toward ad-supported models.
FAST continues to thrive, and rightly so, as it benefits every player in the ecosystem. The entertainment genre grew over 100%, making it a top investment choice, showcasing both significant scale and a strong growth rate. It also represented 42% of all new channel launches. The U.S. & Canada accounted for 50% of the new channel launches — continuing their dominance in FAST.
Amagi’s "Global FAST Report Edition 14" reflects that 65% of consumers find the streaming landscape confusing and 75% reported they would be more likely to spend time on a video service if it included both free, paid, and ad options. Audiences are embracing FAST for its free, lean-back, and high-quality viewing experience. It is available 24/7 without any entry barriers. Meanwhile, for content owners, FAST channels offer content owners a gateway to expand their digital reach by distributing original programming or breathing new life into existing libraries. They also serve as a strategic tool, offering a curated content selection as a "sampler" to entice viewers toward paid subscription services. Essentially, FAST provides content owners unparalleled opportunities to broaden their audience, boost engagement, and generate ad-based revenue streams.
Finally, FAST allows advertisers to approach audiences in a personalized and often non-intrusive way. The widespread adoption of Server-Side Ad Insertion (SSAI) and programmatic advertising has revolutionized ad hyper-targeting. Another benefit is gaining actionable insights into ad performance and viewership metrics, which aid in refining ad strategies.
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