18 AUG 2023

Why is FAST skyrocketing in Latin America?

FAST is a global phenomenon that is challenging the dominance of SVOD, PVOD, and other video consumption models. The Latin American region is no exception to this upward trend, as data from the Amagi revealed.

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Free Ad-supported Streaming Television (FAST) is a global phenomenon that is challenging the dominance of Subscription Video On-Demand (SVOD), Premium Video On-Demand (PVOD), and other video consumption models. The Latin American region is no exception to this upward trend, as data from the Amagi Consumer Survey and Amagi Analytics revealed.

The primary reason that seems to attract an increasing number of households to FAST is affordability. A study by Magnite reveals that 71% of current pay TV customers in Latin America do not mind switching to an ad-based streaming model and are willing to watch ads for free content in return.

Another factor is better accessibility. Whether it is a Connected TV (CTV) or a smartphone, the Latin American region is seeing a massive surge in adoption rates. A Comscore and IAB Argentina joint survey reveals that CTV’s reach spans a vast audience of over 150 million viewers, encompassing a remarkable 41% of the Latin American population in Chile, Colombia, Mexico, Peru, and Uruguay combined. CTVs see similar popularity in other parts of Latin America, as they are the most popular devices used for streaming content in Brazil, Mexico, and Argentina, and around 97% of households already have one in their homes. Smartphone penetration is also expected to reach approximately 73% by 2025 in Latin America, making FAST all the more accessible to viewers.

According to Amagi, these numbers are highly encouraging for content creators, platforms, and advertisers alike, as they suggest that a more significant chunk of the Latin American population will gradually be more exposed to personalized ads. In fact, an overwhelming 88% of ad-supported streaming viewers exhibit a higher inclination to purchase a brand they actively engage with on multiple devices.

At the same time, Latin American audiences love a variety of content options to choose from. The good news for them is FAST offers variation across genres. According to feedback from 96% of ad-supported streaming viewers, streaming TV offers superior entertainment options and programming compared to traditional cable TV.

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