FAST distribution: Lean back is back

In my previous blog article, I explored how the rise of FAST (Free Ad-Supported Television) channels is reshaping the media landscape. We discussed how a curated playlist of content centered around a common theme and presented as a linear channel can attract viewers and drive ad revenues. But great programming alone is not enough. An effective distribution strategy is crucial, bringing its own set of opportunities and challenges. Let's explore these in this blog post.

From lean-forward to lean-back: why is FAST gaining traction?

While on-demand platforms offer viewers the flexibility to watch anything, anytime, and anywhere, this convenience comes at a rising cost—with services like YouTube TV now matching cable TV prices—and leaves viewers overwhelmed by choices. FAST channels, on the other hand, provide a refreshing alternative with free, curated content, consumed in a traditional linear channel format.

The growing demand for simplicity isn’t just appealing to viewers; media, entertainment, and other industries are also drawn to this model. It enables them to reinvent the use of their existing tech stack and operational capabilities, while better monetizing their vast content libraries.

Breaking down the FAST ecosystem

The FAST distribution ecosystem is shaped by three major players, each with their own challenges and benefits: media companies, OEM TV manufacturers, and tech platforms.

Success factors of FAST distribution

Thriving in the competitive FAST landscape requires a balanced and strategic approach. Market players must incorporate innovative technologies such as cloud, data and AI, stay ahead of emerging consumer trends, continuously reinvent their core capabilities, and excel in three critical areas:

• User attraction: strong content partnerships are essential for drawing in viewers. Collaborations like Pluto TV’s deals with NBC and Warner Bros. help establish a robust content lineup that appeals to diverse audiences. Targeted marketing, such as Pluto TV's campaigns on TikTok, plays a key role in attracting younger demographics.

• User engagement: retaining users once they've arrived is just as important as attracting them. Samsung TV Plus excels at curating channels based on user preferences, consistently delivering fresh and personalized content features, such as exclusive channels and custom playlists. These keep viewers engaged and satisfied in the long term.

• Data analytics and AI: Data and analytics play a key role in FAST’s success. Players that use predictive analytics and AI-driven recommendations—like Amagi’s AI-powered scheduling—can significantly enhance the user experience while boosting advertising efficiency. This capability improves both user retention and monetization by delivering more relevant content and ads. Ad insertion technology, metadata enrichment, and real-time analytics further strengthen FAST players’ competitive edge.

Navigating FAST’s competitive landscape

According to S&P Global Market Intelligence, total FAST ad revenues in the U.S. approached $4 billion in 2022 and are expected to grow just under $9 billion by 2026; we’re witnessing the same happening in Europe , especially in the UK and Germany (according to Omdia, by 2027, the revenue opportunity outside of the US is expected to be approximately $1.6 billion).

As the number of FAST channels continues to grow, those who want to succeed, including media and entertainment companies, will need to find new ways to stand out in an increasingly crowded market. Anticipating shifts in viewer behavior, while experimenting with innovative ad formats like shoppable ads to maintain user interest, will become imperative. These ads, tailored for connected TV audiences, represent the next frontier in engagement and monetization.

And as if these challenges were not difficult enough, the market competitiveness continues to intensify due to various entities from different industries expanding into new territories and fighting for market share. Strategic partnerships among all the players involved in the FAST play, such as collaborating with OEMs to ensure visibility, will be crucial.

While it’s clear that FAST is the way forward, it doesn’t mean the path is free of obstacles. To succeed in the fast-evolving streaming market, investments in content, media supply chain capabilities, innovation, and partnerships must be complemented by a strong monetization strategy. I will address this last point in my next blog.