When too much of a good thing is not a good thing, there’s invariably a solution.
As the number of streaming services grew during the pandemic, so too did two issues for subscribers: the monthly cost of multiple subscription services and the overwhelming array of available content choices they provide.
A solution that has gained traction in recent years has been the implementation of virtual channels, Free Ad-Supported Television channels, or simply FAST channels. Similar to traditional broadcast or cable channels, FAST channels are free to view, with revenue generated by advertising. And like their broadcast or cable equivalents, they provide a steady stream of content to the screen, without the need for viewers to make decisions about what to watch at a given time.
FAST’s appeal is in its simplicity. For consumers who are seeking to pare expenses, FAST channels offer a way to access streaming content without increasing their overall spend on OTT services. For those who would prefer a laid-back navigation and viewing experience, FAST replaces the decision-making process with a pre-determined programming lineup.
Omdia estimates that the FAST market in the United States will surpass $10 billion in revenue over the next four years, but that faster rates of growth elsewhere in the world will reduce the US share of FAST revenue from 90% today to 86% by 2027. FAST is newer to the Indian market but most of the prominent news channels – including ABP, NDTV, TV Today and Zee News – have launched their own FAST channels, and more are coming. Further, multiple studies show that the vast majority of Indian viewers are willing to pay for advertising in exchange for access to free content.
Like traditional television channels, FAST channels enable content providers to monetize viewership with advertising revenue, but they also can serve as a gateway to other programming. Where traditional channels were the ultimate destination, FAST is OTT’s front porch – a place to linger and enjoy choice-free viewing, of course, but also the entryway to a world beyond in which channel owners can help consumers surface library content that might otherwise be overlooked.
For most streaming providers, FAST channels are a complement to their existing Subscription Video on Demand (SVOD) service. Those providers increasingly are recognizing that programming episodes of older longtail content as part of a FAST lineup can boost SVOD viewership of those titles and help to drive consumer loyalty, engagement, and monetization. What’s more, these providers’ ability to offer a continually refreshed flow of content has been instrumental in the success of their FAST strategies. According to TiVo’s Video Trends Report, FAST and social video in the United States boosted total daily viewing time from 10.3% in Q4 2021 to 23.5% a year later.
As FAST channels proliferate, technology innovators such as Quickplay are working with streaming providers to enable new differentiation and market opportunities. Instead of delivering the same channel to every viewer, the latest generation of FAST is harnessing cloud-based personalization and monetization tools to enable each viewer to receive a channel experience that reflects their interests and maximizes the value of providers’ extensive content libraries. Think an MTV ‘90s channel that delivers Madonna videos to one subscriber, and Pearl Jam to another.
Leveraging stated and demonstrated subscriber preferences, the latest generation of FAST allows OTT providers to combine the simplified experience viewers want with the targeted content and advertising. This achieves two important goals: making individual channels stand out, and facilitating migration of viewers to SVOD services that can help to build value for providers, advertisers and – importantly – for subscribers.
Written by Goutham Vinjamuri, COO and Co-Founder, Quickplay