FAST TV: Free Ad-Supported Streaming Television

What is FAST TV?

FAST TV stands for Free Ad-Supported Streaming Television. This service offers viewers access to pre-programmed video channels for free, in exchange for watching ads during scheduled breaks. Essentially, FAST TV operates like traditional TV but over the internet.

How Does FAST TV Work?

Viewers can watch content on various channels that come with advertisements. Popular FAST services like Pluto TV, Peacock, and Roku offer a diverse range of free linear channels featuring new movies, news, TV series, talk shows, reality shows, and more. To watch a specific show or movie on a FAST channel, viewers need to tune in at a designated time and will encounter ad breaks, like traditional TV viewing. This is different from Video on Demand (VOD) services like AVOD (Advertising Video on Demand), where content can be viewed anytime.

FAST TV vs. Linear TV

FAST channels are the OTT (Over-The-Top) equivalents of traditional TV channels, requiring viewers to watch ads. Unlike traditional linear TV, FAST channels are accessible on various devices, including smart TVs, smartphones, tablets, and computers, all for free. Another key difference is the ad load: FAST channels typically have 8 to 10 minutes of ads per hour, compared to over 12 minutes per hour on paid TV. Additionally, FAST channels use dynamic ad insertion, tailoring ads based on viewer preferences for better targeting, performance, and higher CPM (cost per thousand impressions).

The Growth of FAST TV

The FAST TV industry is booming, with ad revenue reaching $2.1 billion and expected to surpass $4.1 billion soon. This growth is driven by the increasing trend of cord-cutting, with over 46 million US households projected to cancel their cable TV subscriptions in Favor of streaming services like FAST within two years. FAST services are attracting a projected 216 million monthly active users (MAUs) next year, prompting content publishers, OTT service providers, and advertisers to explore this market.

Why Are Consumers Adopting FAST TV?

Consumers are drawn to FAST services due to their enhanced viewing experience. These channels offer a programming grid like cable TV and can be streamed on any device. The always-on functionality of FAST TV saves viewers from endlessly scrolling through content libraries on AVOD and SVOD platforms. In an era of choice paralysis, having content pre-selected can be refreshing.

Popular FAST TV Platforms

The popularity of FAST channels has led to significant acquisitions by media giants: • Pluto TV by Viacom in January 2019 • Xumo and Peacock by Comcast in 2020 • Tubi by Fox in March 2020

Pluto TV, with over 68 million monthly active users and 196 exclusive channels, is one of the largest FAST services globally. Other notable platforms include Roku, Peacock, Samsung TV+, Vizio WatchFree, and TiVo+.

Types of FAST Services

1. Platform Agnostic vs. Platform Exclusive

Platform Agnostic: Available on various devices regardless of the operating system. Examples: Pluto TV, Xumo, Peacock, Roku. Platform Exclusive: Accessible only on specific devices. Examples: LG Channels on LG webOS TVs, Samsung TV+ on Samsung smart TVs, Vizio WatchFree on Vizio smart TVs, TiVo+ on TiVo devices.

2. Niche/Syndicated vs. Branded Channels

Syndicated Channels: Curated by established FAST services (e.g., Xumo's thematic channels like Action, Black Cinema, SciFi). Branded Channels: Operated by content creators or owners (e.g., Hallmark Movies, FilmRise Free Movies).

3. Pure vs. Premium FAST Services

Pure FAST Services: Offer linear channels with ad breaks. Premium FAST Services: Provide additional options like pay-per-view or subscriptions to avoid ads.

Difference Between AVOD and FAST TV

AVOD platforms like YouTube and Hulu allow users to watch content for free in exchange for ads. However, unlike FAST channels, AVOD platforms do not require viewers to tune in at specific times.

Launching a FAST Channel To launch a FAST channel:

1. Create and curate a consistent flow of new content.
2. Use a channel origination platform to convert your content library into a linear channel.
3. Determine your niche and monetization model.
4. Develop a distribution strategy for websites, smartphones, and CTV apps.
5. Incorporate ads using Server-side Ad Insertion (SSAI).
6. Sell ad inventory using platforms like Google Ad Manager and Freewheel.
7. Consistently produce fresh content to retain viewers.

A simpler alternative is to partner with established FAST services like Pluto TV or Xumo, leveraging their reach and simplifying ad sales.

Key Takeaways

FAST services blend the best aspects of traditional TV and streaming, offering a variety of content for free. These channels are accessible on multiple devices and use dynamic ad insertion for more relevant advertising. With the ongoing trend of cord-cutting, the FAST market is poised for continued growth, making it an attractive opportunity for OTT service providers.