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FAST (Free Ad-supported Streaming TV) revitalizes linear TV, garnering renewed interest and engagement. Embracing personalization further enhances its appeal, catering to individual viewer preferences and increasing relevance. This shift signifies a renaissance for traditional television, blending familiarity with modern customization to elevate the viewing experience and attract diverse audiences.
In less than 20 years, streaming video has both transformed the TV landscape and created somewhat of a mirror image of what TV looked like before streaming arrived.
Not only has advertising started to flourish as a means of monetization across platforms and services, live, scheduled programming continues to gain traction as content creators, media companies and device manufacturers roll out new free ad-supported television (FAST) channels to a growing number of platforms.
Yet as quickly as some creators may develop and launch a new FAST channel, ideally with a strategic distribution plan, ensuring a channel’s long-term viability is anything but guaranteed.
For starters, the FAST landscape has become incredibly crowded over the last year. Given the rapidly evolving FAST landscape, industry size estimations are varied. According to Gracenote Video Data, there are more than 1,900 individual FAST channels for audiences to choose from, with more than 1,300 in the U.S. alone. For context, there were just 1,000 in the U.S. mid-way through 2023.
That’s more than 21% growth in eight months. And what’s more, individual FAST platforms, such as Pluto TV, Amazon’s Freevee and Tubi, typically have hundreds of channels within them, providing ample choice within individual electronic program guides.
The three independently reported FAST services in Nielsen’s the Gauge have a combined total of more than 800 live TV channels
Industry congestion notwithstanding, viewer engagement and advertising dollars are increasingly focused on over-the-top1 content that audiences access via their connected TVs (CTV2). In third-quarter 2023, for example, audiences spent just under two hours per day with CTV content3, representing more than 40% of their total time with TV (4:34 per day).
Time with FAST programming is also growing: Pluto TV, Tubi and the Roku Channel accounted for 3.7% of total TV use4 in February 2024. With viewership rising, advertising is following suit. Digital TV Research Ltd., for example, forecasts that global FAST revenue will hit $17 billion in 2029, up from $8 billion in 2023.
Not everyone will benefit from the upswing. More channels does not equate to more viewership. It simply disperses viewership. This is true across the streaming industry, and audiences are overwhelmed. A January Motley Fool survey, for example, found that 62% of audiences say there are too many streaming options, with 39% reporting pulling back on the services they subscribe to on a year-over-year basis.
70% of streaming consumers are familiar with FAST services and have watched FAST content in the past three months
FAST services stand to benefit from subscription overload, as a 2023 Deloitte survey found that 19% of consumers have switched from a paid subscription to a FAST service. Additionally, Nielsen’s latest streaming consumer survey found that 70% of respondents said they are familiar with FAST and have watched FAST content in the past three months. Access to new content is a primary driver, with 63% saying they have access to traditional VOD services but are interested in exploring new content on FAST platforms.
Yet with the industry intently focused on content monetization, creators, publishers and broadcasters entering the FAST industry need to do more than simply make their programming available to viewers.
The best way to engage and maintain audiences is by offering them something they’re actually looking for. But content isn’t born with an innate ability to deliver itself to audiences. That’s where metadata comes in. But like content, metadata is not homogenous. This is especially the case in FAST services, where individual channels come from an array of distributors.
But when content includes a Gracenote ID, it’s automatically linked to an array of standardized entertainment assets that are critical in fulfilling audience search and discovery journeys. Linked information includes:
Still in its early days, the FAST ecosystem is playing catch up with respect to metadata. A recent analysis, for example, found that 31% of the FAST programming submitted to Gracenote did not include any genre information. This, in and of itself, will limit monetization opportunities, as brands and agencies are unlikely to advertise against content without knowing the program genre.
But having the basics is just the beginning. Succeeding in the future will require data enrichment strategies that build on the basics of imagery and descriptions by providing a more complete picture of your content. Additions like mood, theme, scenario and setting provide a new layer of information that can elevate the appeal of programming among audiences looking for something to watch.
Sourced from Nielsen
