FAST: The flea market of tomorrow's content streaming

Is FAST becoming the flea market of tomorrow's content streaming?

What if I told you that the evolution of television could learn a trick or two from the bustling, eclectic world of a flea market? It might seem like a stretch at first but consider this analogy: individuals with unused items at home lacking proper use and storage turn to flea markets. They package or repurpose their products to fit better the potential buyers’ needs, display them, and, if marketed well, sell them to make a profit instead of letting them gather dust.

Now, imagine translating this concept to the streaming world: how can broadcasters, content owners, publishers, and tech giants repurpose content they hold rights to—such as TV series, shows, cooking programs, and sports—into a curated playlist showcased on a streaming platform that mirrors traditional linear TV? This approach would allow viewers to access the desired content while enabling the provider to earn revenue by tapping into new monetization strategies such as targeted advertising. This is the core of FAST, or Free-Ad Supported Television, which we will explore in detail below.

Best deal for both viewers and media companies

I’ve worked with many leaders in media and entertainment over the past years and witnessed how the fast-paced technology and ever-changing demands of users have transformed the industry. One of the most exciting “revolutions”, in my opinion, was (in 2007) and will continue to be the global surge of video streaming (SVoD) platforms. This market is projected to continue to grow by 8.53% (2024-2027) resulting in a market volume of €128.60bn in 2027.

Streaming has become the predominant media distribution model in the digital space, while media and entertainment industries and their audiences have clashing needs.

Streamers are under pressure to deliver new, original, and premium content every month to compete and retain their viewers - a model that has significantly squeezed margins. Furthermore, the increase in Connected TV penetration in households, expected to reach 90% by 2027 in the U.S., is also contributing to the ripe environment for the proliferation of FAST. Leveraging the digital infrastructure built for streaming while offering content in a linear format, seems to be a win-win situation for both a significant portion of viewers and broadcasters.

However, there is a caveat to this: viewers are burdened by constant price hikes and the “paradox of choice” that active viewing of streaming requires. Their content consumption behaviors have also changed a lot over the last year as they’ve increased usage for social media (52%), social video (52%), and video games (50%). They seek simplicity and more importantly the possibility to move freely across TV, film, gaming and social media, spaces where legacy media companies have little to no footprint.

The economic and strategic advantages

FAST platforms are not just growing in popularity among viewers; they also present a lucrative opportunity for advertisers and content creators. We hear this from our clients every day. With traditional TV viewership declining and streaming subscriptions becoming increasingly saturated, FAST offers a new avenue for reaching audiences. Advertisers value FAST because it combines the precision of digital advertising—targeting specific demographics and interests—with the broad reach and engagement of traditional TV.

For broadcasters and content creators, FAST represents a strategic complement to subscription-based models. It allows them to monetize archival content and cater to niche audiences without the barrier of a subscription fee. Moreover, the model supports a diverse range of content, from niche genres to mainstream entertainment, providing flexibility in programming and the potential to experiment with new content formats without significant financial risks.

Programming: one of the three key pillars of FAST

Programming for FAST channels involves strategic selection and scheduling of content to maximize viewer engagement and advertising revenue. Broadcasters can leverage their existing libraries, tapping into the nostalgia of older shows or offering thematic channels that cater to specific interests. The scheduling mimics traditional TV with a linear programming grid, but with the added capability of adjusting content in real-time based on viewer engagement and other analytics.

As we look to the future, the FAST model is poised for significant growth. Industry analysts predict a continuous increase in revenue and user engagement, driven by broader CTV adoption and the ongoing shift in viewer habits from pay-TV to more flexible, cost-effective services. The global expansion of FAST services is also on the horizon, with potential markets in Europe, Asia, and Latin America showing promising growth opportunities.

The FAST track to success

FAST is rapidly becoming a key approach in the media industry, offering a unique blend of traditional TV's simplicity and digital streaming's advanced capabilities.

To capitalize on the benefits of this model, broadcasters also need to actively enhance their distribution capabilities, as well as embrace technology for targeted advertising and efficient content monetization. By mastering all three success factors – programming, distribution and monetization, media business will feel confident about their ability to successfully execute the transformation they need to keep up with the industry’s fast paced evolution.

Stay tuned for the next two blogs as I’ll continue to explore distribution and monetization strategies for FAST services. Transformation and growth are just starting, and media and entertainment are taking the FAST track to success.