i3 - January/February 2021 - 41

By Gary Arlen

Business

C S PAC E

FAST Viewing
Options

Vertigo 3D/Getty Images

ree Ad-supported Streaming Television
(FAST) has quickly taken new forms, and
in the process, is generating questions:

● Are the ad-based FAST linear channels
too similar to cable/satellite bundles? For
example, popular FAST channels run by
media companies, such as ComcastNBC
(which owns Peacock and Xumo), FOX
(Tubi), ViacomCBS (PlutoTV) and A&E
(which has spun out content from its linear line-up, creating new " Skills &
Thrills, " " Lively Place " and " Crime 360 "
FAST channels on multiple platforms).
● How does free FAST complement
Ad-based Video-On-Demand (AVOD)
channels, such as Hulu, CBS All Access
and YouTube, which use ad revenue to
augment their monthly subscriber fees?
Add to that Subscription VOD (SVOD)
services such as Netflix, Disney+ and
Amazon Prime?
● Will FAST's focus on Connected TV
(CTV) and Smart TV homes establish
relationships with TV set makers? How
will the FAST projects at LG, Samsung,
Vizio and Roku (among others) develop?
● What will be the impact when
Amazon adds linear channels to its
IMDB-TV package?
● Does the online replication of commercial broadcasting's ad-supported format
hinder the value of over-the-air free TV?
● Could broadcasters use the emerging
ATSC 3.0 standard to deliver FAST
streams to enhance or compete with
their channels?
C TA . t e c h / i 3

i3_0121_41_Business_CSpace.indd 41

Viewer Uncertainty

Meanwhile, some viewers are confused
about where to find their favorite programs in the shifting streams. For example, the whereabouts of Charlie Brown's
Christmas special became a programming mystery. After decades of appearing on the ABC network, the show
moved to Apple+ SVOD in 2020. It was
available online for free around the holiday (i.e. no Apple+ subscription
required). But the programming revision sent a clear message about where
" old shows " are going. In this case,
Apple+ already had its original Snoopy
in Space daytime show featuring the
animated characters.
FAST is also affecting the marketing
community thanks to its prodigious
growth. Advertising on CTV during
2020 climbed by 25% above prior year
levels (including AVOD and FAST),
according to eMarketer. A separate
Moffet/Nathanson Research report
showed a 31% year-over-year jump during the spring quarter, partially fueled
by COVID-induced viewing.
Even those figures generate questions.
Are advertisers spending more, or are
they reallocating their TV spending with
more online outlets (i.e. moving commercials from broadcast or cable channels to FAST and AVOD)?

Synergies are taking shape as program
producers determine how to operate in
the streaming ecosystem. Among the
conclusions: Marketers are exploring
new business arrangements for sharing
FAST ad revenues with platform operators via programmatic ad sales.
Countless FAST variations are popping up. Redbox, known for its vending
kiosks, cut a deal to make its FAST content available on Xbox One. The channel
line-up includes Pac-12 Classics and
Black News Channel. The Redbox content is also streamed via a browser and
on mobile devices.
FAST is emerging as both a technical
possibility and a revenue replacement for
the broadcast and cable TV revenue models. Yet many industry veterans want to see
how this reconfiguration of the 100-year
old ads-only broadcast model and the
50-year old cable TV approach (subscriptions plus advertising) will work.

Ad Strategies

More, FAST is entering a competitive
market. Streaming viewers are being
pulled by AVOD (such as CBS All Access),
SVOD (Netflix or Amazon Prime) and
Transactional Video-On-Demand (TVOD,
such as pay-per-view concerts bought à la
carte). TVOD events range from Billie
Eilish' $30 " Where Do We Go? " performance, to " An Evening with Renée
Fleming and Vanessa Williams, " concert
for $15.
This hybrid revenue model is appealing to content distributors, eager to
deliver to new audiences. While some
FAST services are selling ads directly,
others have struck arrangements with
programmers to set up split inventory
deals. Amazon was expected to control
all ad inventory when it launched the
IMDB-TV channel, which may spur
other FAST operators to adopt a similar
structure in this new realm.

2021

Tune into C Space at CES 2021 for
thought provoking interviews with
industry leaders.
JANUARY/FEBRUARY 2021

12/9/20 3:28 PM

https://bit.ly/3mqIpzi https://bit.ly/3mqIpzi https://www.ces.tech/ https://cta.tech/Resources/i3-Magazine/i3-Issues

i3 - January/February 2021

Table of Contents for the Digital Edition of i3 - January/February 2021