Every one of us is familiar with streaming services these days, right? But have you been aware of the term Free Ad-Supported TV before? Free Ad-supported is growing faster and proves valuable revenue streaming for video streaming businesses. Want to know how? Know everything about Free Ad-Supported TV and how it works in this blog.
More people are turning to free content with ads, increasing FAST popularity to a great extent. Hence, if you want to launch your FAST channel, it’s the right time to go with the process and earn significant revenues quickly.
The Q1 2022 ad impressions and attempts increased by 18% over previous years; the viewing time has increased by 10%. The US FAST services provider experienced 20% growth; the number is expected to increase very soon.
The streaming services increased by 75%; however, the number of subscribers doubled and reached around 250 million viewers or users in the U.S., half of whom go for AVOD viewing. The average FAST monthly active viewers are streaming channels for between 10 to 15 minutes per day.
Streaming with ads experiences fast growth. Streaming experts stated that the “looming recession would cause the streaming sector to merge more quickly into the new lane where it is heading already.
Free ad-supported streaming TV -FAST network list includes Tubi, Amazon’s Freevee, Pluto, etc. The premium subscription streaming services scramble to grow to ad-supported tiers to offset the subscribers’ loss and slower-than-predicted growth (Netflix and Disney+).
Streaming industry players and dealmakers observe that FAST has long been stereotyped as a haven for a struggling Gen Z audience to enjoy dusty network reruns for free. It’s poised to integrate access to premium content into its mix without the hefty price tag. Let’s explore what FAST is, how it differs from AVOD, and more immediately.
What is FAST?
Free ad-supported TV, FAST is an OTT content delivery model that is free for viewers while generating revenue by serving video streaming ads. The streaming content is delivered in linear scheduled programming form, with ads served during, before, and after streaming content.
More than 55% of customers use at least one FAST service. Survey data shows that Hulu and Discovery+ are likelier to score higher in completing an ad and paying attention. More than 51% of Discovery+ viewers gave around 8 to 10 ratings (between 0 to 10 scale) for ad attention, as 45% of Hulu viewers did recently. Just 13% provide ad attention ratings on Peacock, 30% of Paramount+, and HBO Max for 39%.
How Do FAST and AVOD Differ from Each Other?
FAST sounds familiar; you might wonder about AVOD, another ad-supported content delivery method. Both terms are interchangeable, but a few differences differentiate the two from each other. FAST is entirely free, as the name suggests. On the other side, advertisement is the primary revenue for AVOD; this method does not exclude other video monetization methods.
For example, Netflix announced its plans to introduce a lower-tier pricing plan that includes ads. With this plan, streamers would pay a low subscription fee to be served advertisements. A second significant difference between AVOD and FAST is the content delivery method.
FAST includes scheduled and linear programming, just like traditional TV. Meanwhile, AVOD is an effective monetization method for video-on-demand (VOD). With FAST, you can watch whatever is streamed at the moment; compared to AVOD, you have to pick the content you love to stream.
FAST growth has grown tremendously, as who does not like free content with no more catches and commitments? Since the fastest services do not publish their revenue and subscriber numbers aren’t substantiated or audited, it is hard to get a sense of how they’re going.
How Does FAST Compare to Traditional OTT Monetization Models?
Roku, Xperi, Crackle, and other streaming platforms are diving and opting for FAST adoption. Before diving into the FAST and other OTT monetization models, let us refresh our memory on what those monetization models are. If you are planning to launch the OTT platform or build a video streaming script, you have four ways of monetizing to select from:
AVOD: Ad-based video-on-demand is a monetization method that is based on video ad revenue;
SVOD: Subscription-based video-on-demand depends on users paying recurring subscriptions to generate more revenue;
TVOD: Transaction-based video-on-demand utilizes pay-per-view (one-time transactions) as a source of revenue;
Hybrid: It’s possible to use a combination of the three methods listed above to monetize the content.
We have covered the FAST and AVOD differences above, but how does FAST differ from SVOD, TVOD, or other OTT monetization models? The primary benefit of FAST over other OTT monetization models is that it’s free for viewers. It has the power to attract an audience that is unwilling to spend money on another subscription service.
Why are Streaming Platforms Turning to FAST?
Have you heard about The Great Unsubscribe or subscription fatigue? Both the terms refer to the rising discontent among viewers with streaming services. People are tired of paying for streaming content access on multiple OTT platforms, as these expenditures can pile up quickly. This is the primary reason why many video streaming providers are experiencing a drop in subscribers.
The reason for The Great Unsubscriber is ad-supported and free content. For example, Comcast XUMO has a database of shows and movies, enabling users to watch the streaming content on demand; it provides free access to live news and other TV channels.
Recently, the platform launched “What to Watch ” streaming ads to boost engagement. By providing freemium or free content, streaming platforms have a chance to retain a portion of the audience that has otherwise left the platform altogether. Additionally, they attract an audience that has never been interested in paying for subscriptions.
FAST Growing Popularity: How Does it Impact Traditional Broadcasters?
The rise of FAST adoption indicates a change in viewers’ demands. No matter whether the traditional broadcasters want it or not, viewers keep searching for content that fits what they are looking for. Broadcasters must opt for changes and FAST content delivery in today’s changing streaming segment. Check the following statistics to know how FAST channels are gaining popularity:
Approximately 50% of US TV viewers will view free ad-supported channels in 2022. The number shows an almost 48% increase as the number of TV viewers who watch FAST channels has increased compared to the one that was measured in 2021. FAST channels are those that provide entertainment for young kids.
YouTube has blossomed into around 82 channels devoted to kids’ programming. There are channels devoted to news, light entertainment, sports, etc. FAST saw an almost 99% increase in channels compared to 2021. In 2022, FAST viewership increased by 103%; it shows around 103% growth in viewership hours and 134% growth in ad impressions. What is behind the resurgence in a format that thought had gone the dodo way?
It has excellent exhaustion from the plethora of streaming options and services; with many options, you can do something to find what to watch and have fun. There is the expense of AVOD and PVOD services; many might be cheaper than PVOD. For example, an ad-supported tier of Hulu compared to the pure subscription services. However, it can get pricey if you have many different subscriptions.
Conclusion
Launching a Free Ad-Supported Streaming Service (FAST) requires careful planning, content acquisition, and the right technological tools. Alphanso Technology stands ready to assist with its robust OTT platform script, ensuring compatibility across devices and providing comprehensive support.
As the streaming industry continues to evolve, the popularity of FAST channels indicates a shift in viewer preferences. By leveraging Alphanso Technology’s expertise, you can successfully navigate this landscape, offering engaging content while maximizing revenue through effective ad placement strategies. Contact the sales team at sales@alphansotech.com to embark on the journey of launching your FAST TV app and tapping into the growing market of ad-supported streaming.
Frequently Asked Questions
What is Free Ad-Supported TV (FAST)?
FAST, or Free Ad-Supported TV, is an Over-The-Top (OTT) content delivery model that provides viewers with free streaming content supported by advertisements. It follows a linear scheduled programming format similar to traditional cable TV.
How does FAST differ from AVOD?
While both terms are used interchangeably, FAST is entirely free for viewers and features scheduled and linear programming. AVOD (Ad-Supported Video-on-Demand) relies on advertising but may include other monetization methods and is often associated with Video-on-Demand (VOD) services.
What are some examples of FAST services?
Examples of FAST services include Tubi, Amazon’s Freevee, Pluto, and others. These platforms offer free streaming content with revenue generated through advertising.
Why are streaming platforms turning to FAST?
Streaming platforms are turning to FAST to address “The Great Unsubscribe” or subscription fatigue. Offering free, ad-supported content helps retain users, attract new audiences, and provides an alternative revenue stream through advertising.
How does FAST impact traditional broadcasters?
The rise of FAST adoption indicates changing viewer demands. Traditional broadcasters need to adapt to this shift, as approximately 50% of US TV viewers are expected to watch free ad-supported channels in 2022.
What is Alphanso Technology’s role in launching a FAST TV app?
Alphanso Technology can help you launch your FAST TV app at a pocket-friendly price. Contact our sales team at sales@alphansotech.com for more details.