Free Ad-Supported TV (FAST): A Value Proposition

New Omdia data reveals global FAST channel revenues will reach $12bn in 2027. It predicts a significant amount of growth in the number of channels and the revenues from them. This kind of ties into what I said previously about the death of the STB. In the same vein, DirecTV removed Newsmax, a right-wing channel, from its line-up with the company immediately telling its audience that it didn’t need distribution and all its content could be streamed from its app.

It all says to me that we are seeing traditional TV channels move from being destinations on a dial to being app icons on a platform. The interesting thing about the growth of FAST is that it is an opportunity because consumers don’t have to pay a subscription to be up and running on streaming content, as they do now for the most part. The old TV model of ad-supported channels on a dial or clicker didn’t do too badly and had plenty of audiences. With more entertainment choices, and the doom scroll/attention sapping of social media and short video, and more providers than just Netflix, it’s FAST’s time to shine.

What is old is new again. Maybe that is a selling pitch for smart TVs: you don’t need a subscription, you don’t need an STB, you don’t need a Roku because we have it all, and there’s a lot of free content for you to enjoy.