Today's consumer has more places to watch their favorite TV content than ever before. One of the newest ways they watch is on free ad-supported streaming television, also known as FAST, a form of over-the-top (OTT). Companies like Amazon, Peacock, Xumo, Tubi, and Pluto are reaching consumers with news, entertainment, sports, and more in an environment that mimics linear TV and is often built right into a TV manufacturer's interface.
FAST providers are enjoying the most rapid expansion in their history. Pluto TV, launched in early 2014, took six years to reach 16 million monthly active users (MAUs) in the US. It has almost doubled that total in the last two years. Other FAST services have enjoyed similarly explosive growth, including Xumo and The Roku Channel. It is not surprising that such a dynamic market has attracted a host of other FAST services. All the major smart TV manufacturers now have built-in FAST services. Three of the top four US smart TV brands (TCL, Samsung, LG, and Vizio) have branded FAST services available from the home screen. Samsung and LG provide access to their FAST services TV Plus and Channels from the home menu bar. Vizio does the same for WatchFree but also dedicates a button on the TV remote. Connected TV (CTV) device manufacturers such as Roku, Amazon Fire TV, and TiVo 4K Stream also have native FAST apps. App providers such as Plex and DistroTV also provide access to vLinear channels.
As Verizon stated in a recent paper, conditions for the rapid expansion of free TV services have become much more favorable in the last several years. Most homes that want broadband services now have it, and with 82% of US households using at least one SVOD service, virtually all are streaming. In other words, a massive audience is streaming and searching for things to watch online. However, the availability of an audience does not explain why so many are gravitating toward FAST services.
NEW ERA
In today's multiscreen video world, more TV viewers rely on streaming services to discover and watch their favorite video content. For example, US consumers are expected to spend close to six hours per day in 2022 with TV and digital video, two with much of that time devoted to streaming video services, both ad-supported and non-ad-supported.
Companies like Xumo, Pluto, Tubi, or Amazon Freevee offer streaming services that also feature linear-style channels, encouraging a lean-back experience that mimics traditional video or cable but in a streaming video format. For advertisers, FAST provides a unique opportunity to reach cord-cutters while they are "scrolling," "channel surfing," and discovering new content, a prospect not possible through ad-free services like Netflix or even from ad-supported on-demand services like Crackle.
As a result of this growth, more premium video publishers are seeing the advantage of creating FAST services to reach and engage with audiences. For example, ABC, Fox, NBC, and CBS now offer FAST news channels, and cable networks like Hallmark Movies, A&E, History, and BBC use FAST channels to reach their audiences. While consumers may land in the FAST sphere without even knowing it, recent Xumo data shows viewers will spend an average of over 100 minutes with FAST video content. Whether viewers are consuming their content on a TV screen, computer, or mobile device, FAST provides them with the convenience of varied content with the nostalgic feeling of surfing through a wide array of personalized channels. Consumers also appreciate that FAST providers typically do not crowd their content with too much advertising.
Moreover, research shows that media plans are most robust when TV is also combined with streaming, including FAST. In fact, in a recent case study analyzing 20,000 multiscreen campaigns, Comcast Advertising found that reach was highest when 20-30% of an advertiser's investment was allocated to streaming. Today, FAST is an increasingly important piece of that streaming allotment, playing an important but complementary role in media plans. To understand the dynamics behind FAST's growth, there are key market participants: streamers, hardware manufacturers, and content providers.
Mark Garner
EVP, Content Licensing and Business Development, A&E Television Networks
"FAST is a marketplace that is coming to its own in the last three years. From a growth point of view, I think there continues to be a tremendous amount of room for FAST, both in terms of content, audience, territory, and platforms. While the United States has a head start on FAST, I see a tremendous opportunity in global markets. Many have already started to adopt FAST or launch their own FAST platforms. Some are local players, and some are global companies, like Pluto or Samsung. I also see a tremendous number of opportunities regarding monetization of FAST, as advertisers and marketers are beginning to really recognize the value and quality of those audiences."
"I would not describe FAST as 'added value.' I think it is a fast-growing new business opportunity that leverages the assets and infrastructure of existing television content companies. A+E sees FAST as the second coming of cable, or the third version of broadcast, just with greater flexibility, much greater targetability, greater data, and greater reach. On a streaming basis, your reach opportunities are phenomenal, almost unlimited."
"We started FAST three years ago. It was a single channel, and we did not know if that would take off or go anywhere. Today, we have 14 channels, and we will be growing that portfolio in 2023. We started in the United States, and it is our expectation in 2023 or 2024 to extend beyond those US boundaries into markets that have developed FAST and are ready for consumers, advertisers, and marketers. Our footprint will be growing over the next months, and I see many markets across the globe as very promising for FAST, particularly those with strong infrastructure, a strong broadband, and a high degree of viewership on connected TV, which will lead to monetization."
Gary Woolf
EVP Strategic Development, All3media International
"We see a range of opportunities around FAST. There's the opportunity to launch our own channels around some of our key brands, around specific genres and key talent. We're immensely proud of our 'Midsomer Murders' channel, where we do a lot of work around the curation of that show, working with the team responsible for the Midsomer brand to make this an integral part of the Midsomer family. Other recent launches include 'Homes Under The Hammer' and 'Great British Menu.' We have a further three channels launching before the end of the year, one of which is focused on a key talent for us; and we continue to operate with Cinedigm our reality channel 'So…Real,' and our single brand channel for 'The Only Way Is Essex.' A channel like 'So…Real' is great for opening up opportunities for some great brands that do not have the volume for a single IP channel."
"I think the core work we do around our channels is the curation and turning these channels into experiences for fans, particularly around single IP or single talent. Digital media has been a component of All3Media International's strategy for many years. We've always been at the forefront, from some of the first co-productions between UK producers and the big SVoD players, having our own niche SVoD service, and now launching FAST services."
"I think what's different this time is the need for a new set of skills. As well as the traditional distribution skills of rights management, we are assuming editorial control, creating elements for our channel, and through working with a technology provider, having overall responsibility for our channel feed that plays out 24/7. That meant ensuring we have competency to produce on-air promotions and to work with platforms to build our audiences through bespoke promotion. In FAST, where we are running our own channels, elements that our traditional client base might be responsible for, WE become responsible for."
Shaun Keeble
VP Digital, Banijay Rights
"It's well documented that the US remains the biggest market in the FAST channel space, but other key territories to focus on include the UK and Germany. There's also growth of note in Latin America, where we recently launched our 'MasterChef' Brazil FAST channel, as well as emerging activity in Australia and New Zealand. We recognize that many more platforms are being launched worldwide, and, as a leading distributor, we want to work with those. But it will always be the content itself that will drive decision making, utilizing our strong, existing recognizable IP."
"In September, we launched our first ever-dedicated Banijay-branded general entertainment FAST channel, Horizons: Powered By Banijay, in a landmark move that further extends our reach on free ad-supported services worldwide. Horizons brings more than 200 hours of premium UK content to viewers on Samsung TV Plus UK, LG Channels, and Rakuten and features several series from our 130,000-plus hour catalog, including 'Location, Location, Location,' '8 Out of 10 Cats' and 'Pointless,' as well as drama series 'Gunpowder' and 'The Woman in White.' This channel features new integrated 'Powered by Banijay' branding, which will now be added to Banijay Rights' entire suite of 15 live FAST Channels and close to 50 live streams globally. Horizons builds on our success in the UK global FAST channel market, where earlier this year, we launched our channel brands' McLeod's Daughters' and 'Deal or No Deal USA' on Samsung TV Plus UK, as well as 'Deal or No Deal,' 'Fear Factor' and 'The Biggest Loser' on LG. Meanwhile, we recently launched a German-dub aggregate channel in Germany, 'Spannung & Emotionen,' which features shows such as 'Peaky Blinders,' 'Broadchurch,' 'Dark Matter,' and 'The Bridge.'"
"We are a platform-agnostic business and will continue to be. FAST channels haven't changed our strategy per se but do add shelf life to our existing titles in our expansive catalog. This whole new world has helped us to bring in a new school of talent, including schedulers, analysts, and editors, something we are fully embracing."
Beth Anderson
GM FAST, BBC Studios
"The beauty of FAST is that it has a low barrier to entry with no paywalls, creating an inclusive environment for all audiences to come together and explore and find content. With this easy access comes increased audience attention and demand for content."
"With BBC's 100th anniversary this year, BBC Studios is uniquely positioned to build and curate FAST and AVOD channels that deliver highly engaged audiences. Major wins include unleashing fan-favorite British brands to a previously untapped audience through deals with Pluto, Amazon Freevee, The Roku Channel, Samsung TV Plus, and Xumo, among others. We launched the 'Top Gear' FAST channel on Samsung and Plex."
"In the past 12 months, we have doubled FAST and AVOD channel distribution from BBC Studios, more than doubled FAST, and AVOD audience reach for BBC content in the US year over year, and we are now looking at where we can iterate, refine, and selectively expand. We have multiple ecosystems allowing us to act globally and think locally, and our usage data allows us to listen to consumers in each region and deliver impactful content."
David Smyth
CEO, Beyond Rights
"The television industry is always in flux and constantly evolving to take advantage of new technology and changing consumer behavior. FAST channels are doing both successfully and can provide new revenue streams for distributors, especially those with sizeable and cross-genre catalogs like Beyond Rights. As the FAST world grows and more consumers engage, perhaps recently put off by the rising subscriptions on SVODs and the cost-of-living crisis in many territories, it is now becoming a meaningful revenue opportunity."
"We have recently announced a partnership with OTTera, which will see us launch several FAST channels globally, probably a mix of Beyond branded channels and IP-based channels around some of the long-running, volume franchises we have in our catalog. Earlier in the year, we launched our collaboration with Insight TV to create Beyond branded blocks on its InWonder channel, and we have now extended this relationship to include a much wider selection of content. We have also recently signed a deal with Samsung to create IP-led FAST channels and are currently exploring several other opportunities around the world that can readily work alongside our current FAST activities."
"For distributors, if we are to be successful, it's vital that our strategy reflects and evolves with the changing media landscape, ensuring we can effectively monetize new opportunities as they arise. Beyond has always looked to evolve in line with industry developments, so at one level, our work in the FAST space fits neatly with our existing strategy. However, this innovation in the consumer space is changing our ability to reach and respond to them directly. So, we are now aligning direct consumer behavior more closely with our content acquisition and subsequent distribution strategy than ever before."
Daniel Gagliardi
VP Digital Distribution and Business Development, FilmRise
"FAST business means international growth. OTT streaming is in its nascent stages outside of the US. FAST, while growing quickly, is nowhere near critical mass. Penetration of markets where local broadcast stations have a strong presence will be the next frontier. Moreover, it is advertising innovation. There is a constant cycle of innovation in the CTV ad space. SSAI (server-side ad insertion) on FAST channels provides an opportunity for greater targeting capabilities than in most formats and especially linear TV. Further, there are opportunities to innovate ad formats, whether that's been experimenting with shorter ads, adding QR codes, or leveraging banners."
"The ability to provide free content to audiences in a new format is the greatest added value. While linear channels are not new by any means, the technical infrastructure of FAST allows us to provide a better-curated experience, including programming stunts and marathons based on current events in the zeitgeist. Our single IP channels offer an opportunity for enthusiasts to binge their favorite content 24/7. We anticipate other innovations in the future. Put simply; the opportunity to serve our audience in a more curated and customized way without the cable TV costs drives engagement and therefore growth & value."
"FAST business changed FilmRise's global strategy in recognizing the high levels of engagement on FAST channels in the US; it's been especially important to FilmRise to include FAST channels as part of our go-to-market strategy in new territories. While local broadcasters are more entrenched globally and ad-supported streaming is still in its nascent stages outside the US, FilmRise must provide a familiar viewing experience, the linear experience, as cord-cutting proliferates globally."
Jens Richter
CEO, Fremantle International
"It is undeniable that FAST is attracting users. There are many potential reasons: SVOD saturation, subscription fatigue, penetration of connected TVs, easy discoverability, reasonable ad-loads, and value proposition (free). One thing we know is that FAST is here to stay. It is a big market in the US and is growing stronger, with several platforms having already reached the $1bn revenue mark per year. We plan to have a dozen FAST channels up and running in the US by the end of 2022. In addition to the US, we believe that international growth will be a big opportunity for us. Thanks to our fully localized content, the editorial curation of our channels, and our marketing and promotion firepower, we can become a truly global player in the FAST industry."
We have been working hard on the creation of successful FAST channels. In addition to massive hits like 'Baywatch,' 'BUZZR,' 'The Price Is Right,' and 'Supermarket Sweep,' we have recently launched 'The Jamie Oliver Channel,' with over 300 hours of renowned chef Jamie Oliver's programming; 'Combining Chop' N Chat,' 'Travelogues' and seasonal specials. We expect to launch additional great channels in the next 12 months, both in the US and Internationally (UK, Germany, Australia, France, Italy, Spain, and others). Our channels are credible linear channels, with editorial curation, attention to detail, and a range of high-quality creativity."
"FAST is increasingly becoming a relevant revenue stream in Fremantle distribution's business, changing our strategy in several ways. On Data: FAST allows us to access a large amount of structured data on content consumption. We then feed this information to different teams involved in the channel creation and other parts of the company. It creates an efficient cycle of communication and powerful cross-collaboration. Regarding advertising, we are keen to explore different business models (Inventory share, Revenue Share, Hybrid), and we are in the driver's seat to positively affect revenues by excelling at curation, marketing, and data analysis. Finally, are brands: in addition to single title channels, we are creating new FAST channel brands that we believe will be valuable both in the short and long term."
Vivek Lath
Managing Director, GoQuest Media
The foundation of the FAST channel business is to solve the 'Selection Dilemma' of users. There is so much content to consume through various platforms with competitive pricing that it becomes an endless search for what to watch next. We see an immense opportunity to monetize long tail or library content. Also, niche content categories can be monetized on FAST. While broadcast television is on a decline, the linear nature does provide stickiness for many content categories, and replicating that on FAST is where we see significant growth opportunities. I would say that FAST will accelerate cord cutting much faster than VOD did."
"For content owners, we think the added value of this business model is the ease of creating channels in any country. Earlier, if you wanted to launch a linear broadcast channel, it would take millions of dollars in capex, tech, and distribution. The investment to launch one FAST channel is less than $10k. There is no better-added value when the cost of setting up is almost nothing. Launch and experiment because the cost of failure is not as high. For viewers, it's free, easy to access, handpicked and curated content, and puts zero cognitive load while deciding what to watch."
"The FAST business has significantly changed our global strategy. Our primary mission is to squeeze every bit of monetization from the content we represent. B2B licensing is constrained by the buyers' capital allocation, focus, and overall capacity. FAST allows us to break through this monetization ceiling. It also allows us to build our own audience thesis and test them. Advertising-supported models such as FAST or YouTube are something we are betting on in the next eighteen months."
Graham Haigh
EVP, Global Business Development & Digital Distribution, ITV Studios
"Initially, we see this as a business model to exploit our huge library of 90,000 hours of content and get this in front of consumers and super fans of shows such as 'Hell's Kitchen,' 'Come Dine With Me,' 'Murdoch Mysteries,' and more. It's clearly a growing sector, and we're thinking about this with a long-term view of creating channel vehicles that will be a key component of our distribution business, offering us flexibility in how we get our content in front of consumers across different windows."
"We have recently launched a 'Come Dine With Me' channel with Samsung in the UK and have a couple more channel launches planned around that franchise. In general terms, we are looking at another four to six launches globally in 2022 and then have plans for further new channels in 2023, distributed across multiple territories and platforms. We have a clear strategy that falls into three buckets of single IP ('Hell's Kitchen' and 'Come Dine'), genre channels, for example, Storylands (Non-English Language Drama) or Our World (Natural History, Wildlife), and broader plays in the general entertainment (ITV Choice) and drama spaces."
"The FAST business means a new revenue stream that we are looking to exploit directly with new partners such as Samsung, Pluto, Roku, and Freevee in key global markets. For us, it's not just about the revenue, running our own channels gives us access to real-time performance and viewing data that we can use within our broader studios business, and in building new partnerships with FAST players, we are already starting to see going beyond library content and moving upstream into first window acquisitions or even original commissions, thus adding value more broadly across our studios business."
Haymi Behar
CMO & CDO, SPI International
"As more and more people are turning to digital TV platforms to consume content, FAST has quickly gained a foothold in the market. Various research shows that around 3/4 of viewers don't mind seeing relevant advertising during TV watching, especially when the content is free. FAST is currently the fastest-growing streaming tier, but there's also so much demand for it from audiences worldwide and much potential in businesses, content providers, and advertisers."
"We have two channels on many platforms, such as Samsung TV Plus, Freevee, Pluto TV, and Rakuten TV. We are also working with some platforms to create specially curated channels for their audience. Finally, we have four more FAST channels coming down the pipeline. Our highly sought-after channels are Filmstream and Fashionstream, which broadcast critically acclaimed classics, independent movies, and the latest from the fashion world plus lifestyle content."
"Today, FAST brings in additional revenue. However, there will be a larger share in the market for FASTs in the future of television as it combines the best aspects of linear TV and digital streaming. Consumers enjoy the lean-back experience that FAST services provide, which emulates the linear TV environment with channel guides and zapping but does not require high subscription costs. It also minimizes decision fatigue from content abundance on streaming platforms as viewers can land on a FAST channel programmed directly into the channel guide of smart TVs and spend time engrossed in the content."
Patrick Rivet
CEO, Thema
"The growing opportunity for Thema is to monetize our overflow content, not only entertainment but also sports, by crafting FAST channels that can live along with our pay-tv offer. Any media company of any size can monetize its content by licensing it to a FAST service provider. In contrast, some large media production and distribution companies, like Thema, have developed or acquired their own FAST video platforms to monetize media assets better."
"We recently launched three FAST channels. Vive Kanal D Drama offers Turkish drama series, a popular category much acclaimed by audiences, including a careful selection of hits from Kanal D Drama to the FAST digital market. It is now available on Roku Channel's 'Espacio Latino.' It is also available on Samsung TV Plus in Mexico and on Canela TV. The second channel is Vivaldi, curated by Mezzo and distributed by Thema, offering an extensive, carefully curated collection of the most exclusive programming. It is available on The Roku Channel, Plex, LG, and other CTV platforms. Finally, ITV Deportes is a FAST channel in Spanish dedicated to Mexico's most popular sports and includes exciting analysis and comments from experts in each sport. It is available on The Roku Channel and Canela TV in the US."
"As per the added value of FAST, in this post-pandemic world, where high inflation rates are putting the squeeze on household budgets, causing a noticeable increase in cord-cutting. Consumers love the idea of having a TV-like viewing experience for free, except for maintaining an Internet connection. Moreover, FAST platforms offer a similar viewing experience with no monthly fees and can be accessed on any device. Another advantage is access to niche, branded, and original content. FAST service platforms seek to broaden their appeal for audiences by acquiring niche, branded content to stream on their platforms."
By Diego Alfagemez
