OTT and the realities of FAST channels
The recent surge in FAST channels is having a significant impact on the OTT industry. Few predicted their sudden rise over the past 18 months, which has left many wondering what they’ve missed. In this blog, we explore what FAST channels are, why they are growing in popularity, and how they affect the OTT industry.
What are FAST Channels?
FAST (Free Ad-supported Streaming TV) channels are a type of OTT content that allows users to stream high-quality linear content with no additional fees or subscriptions required. Simply put, FAST channels are an extended version of traditional TV streamed over internet-connected devices.
FAST vs AVOD
FAST channels operate in much the same way as traditional linear TV, with a programme schedule and ad breaks. AVOD (Advertising Video-On-Demand), on the other hand, is a streaming service business model that enables viewers to watch Video-On-Demand content in exchange for watching ads.
The positives and pitfalls for viewers
FAST channels replicate the traditional ‘free’ TV experience as they are supported by ads, which has led to significant gains in viewership over the last few months for these online-only services. While seemingly advantageous to viewers on the surface, there are drawbacks to consider, including:
- Due to their relatively new nature, some channels may have yet to be adequately tested or optimised for all types of devices, leading to viewers having potential issues with compatibility or performance.
- FAST channels may not be able to offer the same level of content selection as larger subscription services either. This could limit their appeal to viewers who are looking for a specific film, TV show, or other types of program.
- FAST channels can be resource-intensive, which may result in users experiencing buffering or other issues during peak viewing times.
What impact are FAST channels having on the OTT industry?
If you have attended a conference within the broadcast sector in the last two years, you will have heard all about FAST channels. The acronym has created a brand in itself and as ever, companies are jumping on the bandwagon for this ‘new’ business vertical. However, essentially this is merely the move from traditional linear TV via cable and satellite channels, to the future of OTT delivery. The good news is that it is now much easier to ‘spin up’ 24/7/365 linear channels through strong technology provisions, the bad news is that the fight for viewership remains exceptionally competitive, so as before the 80/20 rule will apply. If you are not in the top channels on Samsung, LG, or other, then the viewers will not find you, not watch your content and therefore your share of the advertising revenues will be significantly lower than those at the top.
However, the news isn’t all bad, all the data we see here at Magine Pro speaks to ‘lazy’ weekday viewing, that is to say after a hard day at work the average consumer will switch on linear channels and settle for something, rather than spending the time and effort to choose something from a vast array of VOD catalogues. (This behaviour switches entirely from Friday night to Sunday night). So if you have your own OTT platform, have plenty of content, and work with a good advertising platform, then it is definitely worth providing channels to enable an easier and quicker choice for your viewers.
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Want to discuss the pros and cons of FAST channels further? Get in touch with the Magine Pro team.
You can also head over to our homepage to find out more about our flexible OTT platform. Discover how we enable our partners to monetize their Live Events, Linear Channels, and VOD content with a customisable video streaming service.
