Portico Connected Series 4: FAST Forward: A New Dawn in Content Distribution
Portico Connected: Where Media, Technology, Culture and Content Converge
Bridging the realms of media, technology, culture, and content, Portico Connected is a blog series that offers incisive insights into the ever-evolving global media and entertainment industry. The platform serves as a gateway to the latest trends, groundbreaking innovations, and critical conversations shaping content creation, distribution, and consumption today. Offering unique perspectives from a quartet of industry powerhouses—GagaOOLala, a pioneer in LGBTQ+ streaming and digital media; Portico Media, Taiwan’s leading expert in pay-TV content and channel aggregation; GOL Studios, a production force with hundreds of captivating original titles; and HahaTai, a defining force in Taiwan’s contemporary social media zeitgeist—Portico Connected fosters dialogue and connections between industry leaders, creators, and audiences, exploring the multifaceted ways in which media unites us all in the digital age.
The streaming landscape is evolving at breakneck speed. Amidst rising subscription fatigue, content saturation, and increasing competition, a new contender has emerged: Free Ad-Supported Streaming Television (FAST). FAST channels, offering curated linear programming with ad breaks, are capturing a growing audience, particularly among cord-cutters and budget-conscious viewers. They offer a compelling alternative to traditional television and subscription-based streaming. As audiences embrace diverse content and cost-effective entertainment, FAST is poised for exponential growth, presenting unprecedented opportunities for content creators, advertisers, and platforms.
At GagaOOLala, we see FAST not just as a trend, but as a fundamental shift in content distribution and audience engagement. This article explores the nuances of FAST, examining its market dynamics, monetization strategies, and growth potential, while highlighting GagaOOLala's expertise and strategic positioning within this evolving landscape as we actively pursue strategic partnerships to leverage this rapidly growing market.
Navigating the Complex Streaming Landscape
The streaming world has become increasingly fragmented, with a proliferation of platforms, formats, and business models vying for viewers. Understanding this complex landscape, as outlined by eMarketer, is crucial for content creators and distributors. Linear TV, while still relevant, faces declining viewership as audiences embrace the flexibility and on-demand nature of streaming. Within the streaming ecosystem, Subscription Video On Demand (SVOD) remains dominant, but the rise of Advertising-based Video On Demand (AVOD) and FAST channels offers alternative revenue streams and access to wider audiences.
EMarketer’s classification of “The Complex TV/Streaming Landscape.” Image Source: EMarketer
Decoding FAST: A Free and Linear Streaming Experience
According to Amagi, FAST channels offer a curated, linear programming experience reminiscent of traditional television, complete with scheduled broadcasts and commercial breaks. Unlike traditional TV, FAST channels are delivered via the internet, making them accessible on a wide range of devices. This "lean-back" experience appeals to cord-cutters, budget-conscious viewers, and those seeking specialized content not readily available on major streaming platforms, creating valuable opportunities for targeted advertising and audience engagement. FAST channels are primarily defined by:
Lean-Back Linear Programming: Scheduled content delivered in a channel format, similar to traditional TV.
Ad-Supported Model: Revenue generated through advertising, providing a free viewing experience.
Wide Range of Content: Spanning various genres, from classic movies and TV shows to news, sports, and niche content.
Amagi’s “What is Free Ad-Supported Streaming (FAST)?” Image Source: Amagi
Sizing Up the FAST Market: Growth and Opportunity
The FAST market is experiencing explosive growth, with global revenues projected to reach $12 billion by 2027. The U.S. alone is expected to generate over $10 billion, according to Variety Intelligence Platform. Kantar Media indicates that 47% of U.S. households now use FAST services weekly, a significant rise from 24% reported a year earlier. Since October 2022, the number of households using FASTs has nearly doubled, increasing from 31 million to 61 million.
The steady rise of video viewership among FAST platforms. Image Source: nScreenMedia
Key factors contributing to this growth include increased smart TV adoption, cord-cutting trends, and demand for free, accessible entertainment. While established players like Pluto TV, Tubi, and The Roku Channel dominate the current US FAST landscape, the market remains dynamic, with opportunities for new entrants and innovative content offerings. This presents a compelling opportunity for content providers to tap into a rapidly expanding audience. Key trends surrounding the FAST market include:
Increasing Viewership: FAST is capturing a growing share of total TV viewing time. FAST services are anticipated to add 70 million more users worldwide over the next five years, per Blue Ant Media.
Dominance of Key Players: Freevee, Tubi, Pluto TV, and The Roku Channel are leading the US FAST market.
Global Expansion: FAST is gaining traction internationally, particularly in English-speaking countries like the U.S., U.K., Canada, and Australia, with Germany also ranking in the top five.
Key Players in the FAST Ecosystem: Platforms and Service Providers
The FAST ecosystem comprises diverse platforms, from established players (Tubi, Roku Channel, Pluto) to niche services catering to specific interests (Redbox Live TV, Prende TV). Over 20 domestic FAST platforms are available in the US, including those operated by major streaming services (Amazon’s Freevee, Roku’s Roku Channel), legacy media conglomerates (Paramount Global’s Pluto, FOX’s Tubi, Comcast’s Peacock), device manufacturers (Samsung’s Samsung TV Plus, LG’s LG Channels+), and dedicated FAST platforms like Plex and Xumo. Each platform offers a unique mix of content, features, and distribution strategies. Understanding their nuances, audience demographics, and technical capabilities is crucial for successful FAST channel deployment.
The US FAST landscape. Image Source: nScreenMedia
The growth of FAST has also led to the rise of technical solution providers like Wurl, Amagi, Frequency, OKAST, Future Today, and Zype, offering content owners tools and services to launch and manage their FAST channels.
The Building Blocks of FAST: Channel Creation and Content Strategies
FAST channels span a wide range of genres, from news and sports to movies, music, and niche interest programming. The key to success lies in offering compelling content that resonates with the target audience. While much FAST content currently leans towards reruns, older IPs, and lower-budget content, the trend is shifting towards exclusive original content, international offerings, live programming, and premium acquisitions. Trends surrounding FAST channels can be summarized as:
Content Similarity to Daytime Cable TV: Focusing on reruns, older movies, and lower-budget content.
Platform-Specific and Shared Channels: Creating a mix of exclusive and shared channels to maximize reach and revenue.
Growth of Single-IP Channels: Channels dedicated to a single show or franchise offer fans deep engagement with favorite content.
Growth in International Channels: A notable increase in international channels, particularly beyond English and Spanish.
Dynamic Programming and Ad Loading: Tailoring content and ad loads to viewer preferences.
Samsung’s Samsung TV Plus FAST TV Interface. Image Source: Digital TV Europe
Roku’s Roku Channel FAST TV Interface. Image Source: Roku
Monetizing FAST: Advertising and Revenue Generation
FAST channels are monetized through advertising, offering advertisers access to a highly engaged audience at a lower cost than traditional television. With lower ad loads than traditional TV and targeted ad placements based on demographics, interests, and viewing habits, FAST offers a highly engaging and cost-effective way to reach desired audiences. FAST's ad-supported model provides a mutually beneficial relationship between content owners, platforms, and advertisers:
Ad Load Advantage: Lower ad loads compared to traditional TV enhance the viewer experience.
Revenue Sharing Models: Platforms and channels share ad revenue based on agreed-upon terms.
Ad Inventory Sharing and Management: Strategies for optimizing ad inventory and maximizing revenue.
Connected TV Dominance: Leveraging connected TVs' targeting capabilities for addressable advertising.
DecenterAds “Unlocking the Power of FAST Advertising." Image Source: DecenterAds
Leveraging FAST for Discovery and Exposure: Case Studies
Discoverability and exposure are paramount for success in the crowded FAST landscape. Effective metadata tagging, intuitive channel guides, and strategic partnerships with platform providers are essential for driving viewership. FAST platforms offer curated channel guides and search functionalities, while individual channels leverage programming schedules, promotional trailers, and cross-platform marketing to attract viewers. As demonstrated by platforms like Rakuten Viki (Asian Entertainment), AsianCrush (Asian Entertainment), HereTV (LGBTQ+ Entertainment), and Revry (LGBTQ+ Entertainment) on SlingFreestream, strategic placement within platform guides and partnerships with aggregators are essential for maximizing exposure.
SlingFreestream showcases the potential for discovery and exposure for niche content providers. Rakuten Viki, AsianCrush, HereTV, and Revry, through their availability on SlingFreestream, demonstrate how platforms can leverage FAST to reach specific audiences and build dedicated viewership.
Rakuten VIki, Asiancrush, HereTV and Revry FAST channels on SlingFreestream. Image Source: SlingFreestream
Forging Strategic Partnerships: Case Studies
Building strategic partnerships is crucial for maximizing the potential of FAST channels. Effective collaborations with content providers, platform operators, and advertising partners can amplify reach, enhance monetization, and drive innovation. OUTtv’s partnership with FUSE Media to launch on Pluto TV exemplifies the success of such strategic alliances.
OUTtv’s partnership with FUSE Media for its FAST channel on Pluto TV. Image Source: Next TV
Launching a FAST Channel: Multiple Pathways to Success
There are several paths to launching a FAST channel, each with its own benefits and considerations. Direct partnerships with FAST platforms offer greater control but require significant technical expertise and resources. Technical solution providers like Wurl and Amagi simplify the process, while channel partnerships provide access to established distribution networks. The optimal strategy depends on the provider's resources, technical capabilities, and target audience. Key approaches include:
Direct via FAST Platforms: Working directly with platforms like Pluto TV or The Roku Channel.
Through Technical Solution Providers: Utilizing services like Wurl or Amagi to build and manage channels.
Through Channel Partnerships: Collaborating with existing channel partners with FAST access to expand distribution.
Ways of launching on FAST.
GagaOOLala: Your Partner in Navigating the FAST Future
At GagaOOLala, we see FAST as a perfect complement to our current SVOD offering, allowing us to expand our reach and offer free, accessible content to a broader audience. We believe we are well-positioned to capitalize on FAST's opportunities. Our deep understanding of the LGBTQ+, BL, and GL market, combined with our expertise in content creation and distribution, makes us an ideal partner for brands, producers, and platforms looking to enter or expand their presence in the FAST space. We are actively seeking strategic partnerships to launch dedicated FAST channels, expand our content offerings, and reach new audiences.
Demonstrating our commitment to this new frontier, GagaOOLala founder and CEO, Mr. Jay Lin, recently participated in a professional panel titled “CTV Survival: FAST and AVOD, the Evolution of Film and Television Distribution” at the NMEA Asiahub New Media Summit 2024 in Taipei on Tuesday, 12 November 2024. He, along with Mr. Doug Choy (General Manager, Inventory Development, The Trade Desk), Mr. Robin Lu (CEO, Media & CEO, dentsu X Taiwan), and Ms. Roi Chang (Chief Operating Officer, LiTV), discussed insights, plans, and strategies within the FAST and AVOD sector. Mr. Lin also moderated a panel titled “Southeast Asia Content Strategy: How Viu Builds a Regionalized Media Landscape” with Mr. Lofai Lo (CEO of MakerVille & COO of Viu, PCCW Media Group).
From Left to Right: Mr. Robin Lu (CEO, Media & CEO, dentsu X Taiwan), Ms. Nicky Hsieh (Chief Strategy Officer, LNData, Mr. Doug Choy (General Manager, Inventory Development, The Trade Desk), Ms. Roi Chang (Chief Operating Officer, LiTV) and Mr. Jay Lin (Founder and CEO, GagaOOLala and Portico Media).
From Left to Right: Mr. Lofai Lo (CEO of MakerVille & COO of Viu, PCCW Media Group) and Mr. Jay Lin (Founder and CEO, GagaOOLala and Portico Media).
Mr. Jay Lin at the NMEA Asiahub New Media Summit 2024 in Taipei, Taiwan.
For more on the NMEA Asiahub New Media Summit 2024, please visit: Taiwan News 亞洲新媒體高峰會公布聯網電視消費者收視行為白皮書 強調動漫 IP「破圈」重要性
GagaOOLala's Strategic Demographic Targeting
Portico Media Brand Portfolio
The Portico Media Global Entertainment Ecosystem
For more details, please access our Corporate Deck at: Portico Media Corporate Deck
For any questions and information, please contact: akash@porticomedia.com
Sources and References:
1) EMarketer, 01 April 2024. Linear, streaming, AVOD, and beyond: What do common TV terms mean?
https://www.emarketer.com/content/linear-streaming-avod-beyond-what-do-common-tv-terms-mean
2) Amagi, 10 January 2024. What is Free Ad-supported Streaming TV (FAST)?
https://www.youtube.com/watch?v=GdFGBL2GB9U
3) nScreenMedia, 07 November 2024. US FAST market by the numbers 2023
https://nscreenmedia.com/us-fast-market-by-the-numbers-2023/
4) DecenterAds, 17 May 2023. Unlocking the Power of FAST Advertising: Opportunities, Benefits, Future Trends
https://www.linkedin.com/pulse/decenterads-7064562134130507776/
5) Next TV, 29 June 2023. Pluto TV Distributes OUTtv Proud FAST Channel
https://www.nexttv.com/news/pluto-tv-launches-outtv-proud-fast-channel
6) Variety Intelligence Platform, 01 August 2024. The Future of FAST: A Special Report on Free Streaming
https://variety.com/vip-special-reports/future-of-free-streaming-fast-special-report-1236077268/
7) Variety Intelligence Platform, 15 August 2023. Life in the FAST Lane: A Special Report
8) Variety Intelligence Platform, 18 April 2023. Global FAST: A Special Report
https://variety.com/vip-special-reports/global-fast-a-special-report-1235569656/
9) Variety Intelligence Platform, 01 December 2022. The Meteoric Rise of Free Streaming FAST Channels: A Special Report
10) Variety Intelligence Platform, 01 July 2022. The FAST Approach to Streaming Content: A Special Report
11) Variety Intelligence Platform, 06 October 2021. Life in the FAST Lane: A Special Report
https://variety.com/vip-special-reports/life-in-the-f-a-s-t-lane-a-special-report-1235076973/
12) Variety Intelligence Platform, 08 July 2020. The New Streaming Format Moving FAST in 2020
https://variety.com/vip-special-reports/the-new-streaming-format-moving-fast-in-2020-1234700191/
(This article represents a collaborative effort, integrating the advanced language processing capabilities of Google AI Studio and OpenAI's ChatGPT in its development.)