The Slow Burn of FAST TV
Free ad-supported television (FAST) is growing, there’s no denying that, but is that growth slower than, well, advertised?
For years FAST TV took a back seat to ad-free subscription and on-demand platforms, with services such as Netflix, Hulu and Amazon Prime Video dominating the market. But the recent resurgence of linear TV formats has seen FAST TV begin to close the viewing gap.
The popularity of free TV seemed to be in question as SVOD began its rapid expansion five years ago. Recently, however, streamers seem to be reaching their limits on the number of services to which they will subscribe.
In January 2021, 34% of US households that had video streaming capability used ad-supported streaming services, up six percentage points from January 2020, according to Nielsen data.
One obvious factor driving consumer interest is price – FAST is free, and who doesn't like free content with no commitments and no catches? For the past 30 years, the cost of cable TV has increased annually at almost double the rate of inflation. And for their money, viewers still have to sit through at least 18 minutes of advertising per hour. While 2022 saw Netflix raise the price of its basic, standard and premium subscription packages – with the cheapest of the three now costing $9.99 per month – and all of which are expected to gradually increase as the platform churns out more TV shows, movies, and now video games.
FAST also offers a completely different user experience. Consumers appear to be exhausted by the overwhelming choices of subscription services. Increasingly, they are clamouring for linear, ‘lean-back’ viewing. Unlike AVOD (advertising-based video on demand), FAST allows viewers to simply ‘tune in’, rather than searching for what they want to watch.
So, why the slow uptake? There’s no doubt that the US is ahead of the game in the FAST market, with its influx of connected TVs, the contraction of original TV and the emergence of streaming as a mainstream consumer habit. But the rest of the world is yet to catch up. While the UK and Europe has all the hallmarks of the USA FAST category, the cost of linear broadcast services likely plays a part. FAST competitors tend to be much cheaper in the UK and Europe than in the US, with many households already having access to vast amounts of free linear TV content through FreeView and other broadcaster apps.
It’s also important that FAST platforms acquire local content suited to each market, which is no easy feat at a time when demand for content is unprecedented.
Despite these challenges however, the future of FAST in Europe looks positive. Increased adoption of smart TVs and OTT devices is expected to boost take-up of FAST services, and as the advertising world shift dollars into these platforms, we should see a dramatic acceleration in growth.
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