VISTAS 2023 - Drive the Momentum - October 18-20, Caesars Palace, Las Vegas - Learn More
The FAST Track To Success
by: Tom McDonough | December 18, 2024

Turbocharge your media rights management and drive free ad-supported streaming television revenue

As subscription fatigue continues, the rise of free ad-supported streaming television (FAST) represents a seismic shift in the media and entertainment landscape. With approximately 60% of consumers willing to watch ads in exchange for free streaming content, FAST is not just a passing trend; it’s an emerging paradigm that reflects changing consumer preferences. With consumers seeking affordable content and advertisers chasing audiences beyond linear TV, I’ve witnessed FAST channels become a powerful force, offering a no-cost alternative to subscription models.

What’s particularly fascinating is how FAST is revolutionizing content valuation models. Mid-tier content that previously struggled to find its place is now generating significant returns through strategic ad placement and innovative audience targeting.

30% of FAST libraries will consist of original programming by 2025.

Source: Mediapost

undefined

The shift toward original programming in FAST represents a fundamental disruption of traditional content hierarchies. While premium content still commands top dollar in subscription video-on-demand (SVOD), a new “middle class” of content that performs exceptionally well in the FAST ecosystem is emerging.

FAST channels deliver curated, on-demand content funded through advertising, aligning with changing viewer preferences for affordability and variety. However, the challenges of securing popular content through effective licensing strategies are paramount in this competitive environment. FAST introduces new complexities in rights management, licensing and revenue optimization that demand expertise and foresight.

To effectively monetize FAST offerings, employing a multi-faceted approach focusing on content acquisition and innovative ad strategies is essential. Capturing value requires rethinking traditional strategies and embracing agile licensing models, tiered service integrations and innovative revenue-sharing partnerships. By strategically adopting FAST, I believe you’ll be able to discover new revenue streams, enhance audience engagement, and future-proof your business in the face of rapid industry shifts.

The FAST market is expected to see a 30% compound annual growth rate (CAGR) through 2030

Source: eMarketer

Master complexities and protect revenue

Navigating rights management in the FAST market requires balancing content availability with exclusivity to avoid cannibalizing SVOD services. Missteps in windowing or licensing terms can cost you precious revenue and industry trust. Be aware of these 4 critical areas:

  1. Content investment and licensing strategy
    Securing popular content is vital. This can be achieved through proactive outreach to content creators and leveraging data analytics to identify trending genres and formats for targeted acquisitions. Rights holders must orchestrate complex licensing agreements that align with ad-supported models while minimizing conflicts with exclusive subscription deals.

    You should consider establishing partnerships with independent creators and niche content providers to diversify offerings and attract unique audiences. As content windows blur, you must rethink traditional strategies to prevent the cannibalization of SVOD services. Your success lies in balancing FAST availability with subscription models to diversify revenue streams.
  1. Dynamic windowing across platforms
    Windowing — the strategic timing of content releases across FAST, SVOD and linear TV — is more critical now than ever. Use predictive analytics to forecast audience behavior and optimize release schedules accordingly. Precision maximizes revenue across multiple touchpoints, reducing overlap between free and paid services.

    You should also use real-time data to make quick adjustments and minimize content overlap.

  2. Transparent ad revenue models
    Transparency in ad revenue sharing between platforms, advertisers and content providers is paramount to building trust. You should develop standardized metrics and reporting tools that all parties can access, ensuring that revenue distributions are clear and equitable. This will promote long-term partnerships and ensure sustained content quality.

    To foster sustainable partnerships, you should also ensure transparency in revenue-sharing agreements. Implementing advanced ad-tracking and reporting tools will help optimize collaborations with advertisers.

  3. Safeguarding your IP
    As the FAST market grows, so do the risks of unauthorized distribution and piracy. To protect your content and ensure compliance, you should use digital rights management (DRM) systems, watermarking and automated monitoring tools. Creating a comprehensive legal strategy that includes regular audits and compliance checks can also help mitigate risks.

undefined

Fuel growth with data

I believe data-driven solutions are non-negotiable for success in the FAST market. Real-time analytics allow you to optimize everything from ad placements to content recommendations. Key benefits of data analytics include:

  • Enhanced audience insights
    Implement machine learning algorithms to tailor recommendations based on viewer behavior and preferences, ultimately improving engagement and retention.
  • Optimized ad placements
    Use dynamic ad insertion for higher relevance to boost advertiser ROI.
  • Smarter content acquisition
    Leverage audience data to spot emerging trends early on so you can invest in content that resonates with viewers before it becomes mainstream.
  • Proactive risk management
    Track compliance with licensing terms to avoid penalties and legal risks. Regularly update your risk assessment protocols based on industry changes and consumer behavior.

Leading platforms are now using AI to forecast the potential FAST performance of content before acquisition, fundamentally changing the economics of content buying.

45% of Gen Z viewers prefer ad-supported streaming over traditional cable.

Source: Parks Associates

Agility drives success

To succeed in the rapidly evolving FAST landscape, you must adopt strategic, flexible approaches that maximize content accessibility and revenue potential. I believe the following strategies will help ensure you stay agile and profitable while meeting shifting consumer demands:

  • Flexible licensing models
    Negotiate contracts that allow evolving release schedules across platforms, ensuring these contracts are revisited regularly to adapt to market changes.
  • Seamless integration with SVOD
    Offer tiered models that complement subscription services. Consider bundling options that allow consumers to choose a combination of ad-supported and premium content for a seamless experience.
  • Collaborative revenue models
    Build alliances with advertisers and platforms to unlock shared value. Co-create ad campaigns with brands to enhance viewer experience and engagement, ensuring content remains relevant and appealing.

undefined

Seize the FAST opportunity fast

As consumer behaviors shift rapidly, I firmly believe that now is the time to act decisively. With FAST projected to generate $8 billion in revenue by 2025, this sector’s opportunity for innovation and growth is unparalleled.

You need to leverage data, technology and partnerships to gain leadership in the next wave of digital entertainment. FAST’s growth presents a transformational opportunity for our industry but requires expert navigation of rights management, revenue sharing and IP protection.

For more information on the rise of the FAST market, take the Media Industry Journey.

EXPLORE THE JOURNEY

Get the latest news, updates, and exclusive insights from Vistex delivered straight to your inbox. Don’t miss out—opt in now and be the first to know!