Free Ad-Supported Streaming Television (FAST) channels have gone big, not gone home. And they’ve achieved this feat by popping up in more and more homes.

FAST channels are steering more viewers worldwide off the tired old toll road of subscription-based streaming, and onto a less-traveled TV freeway (that’s actually free).

Can they sustain themselves long-term? No one knows. (The only thing Unified Streaming knows about it, by the way, is that Unified Virtual Channel can help content owners create channels quickly and simply.)

Regardless, let’s examine the current state of FAST TV channels. Citing recent statistics and trends, let’s try to determine whether the streaming model can keep prospering, and endure.

Hope so, right?

Rapid expansion of free ad-supported TV

FAST channel numbers have multiplied. According to Gracenote Video Data, there are over 1,900 individual FAST channels globally. Of those, more than 1,300 are available to stream in the United States alone.

Major ad-supported video-on-demand (AVOD) platforms such as Pluto TV, Amazon's Freevee, and Tubi have contributed to this growth, each hosting hundreds of channels inside their panoply of services. Amazon's Freevee, for example, has expanded its offerings to include over 500 free channels, featuring a diverse range of content from classic movies to sports coverage.

In July 2024 Hollywood heavyweight Tyler Perry announced his partnership with BET (Black Entertainment Television) Media Group, and slid over 600 hours of his productions over to two FAST channels: the BET Tyler Perry Comedy Channel, and the BET Tyler Perry Drama Channel. So you can laugh and cry, free, for days on end. The Perry programs are available on numerous platforms including the Roku Channel, Pluto TV, and Freevee.

Viewer engagement and market impact

The number of viewers vibing with FAST channels has also risen. In February 2024, FAST platforms like Pluto TV, Tubi, and The Roku Channel accounted for 3.7% of total TV viewing, marking a steady shift in end-users’ habits: away from pay-for-it-per-month content, and toward free, ad-supported content. FAST TV is defo gaining ground against traditional SVOD (subscription-based video-on-demand) services.

Broadcaster-owned channels have acknowledged, nay, embraced the potential of FAST platforms, representing 30% of the top 100 FAST channels, and driving 40% of total viewing hours across these channels now.

This trend proves the increasing importance of FAST channels as a viable revenue source not only for the early adopters, but also the traditional media companies that are adapting to the internet-first, traditional-broadcast-second age.

Revenue growth and advertising trends

If money talks, then money in FAST channels is shouting. Charters of trends bet that, globally, its global revenue will hit $17 billion by 2029, up from $8 billion in 2023. The numbers show significant upside in the streaming content model.

Advertisers are carving ever bigger slices of their budgets to serve FAST platforms. Maybe the ad game is emboldened by the channels’ growing viewership and the appeal of targeted advertising opps.

In the third quarter of 2023, audiences spent just under two hours per day watching connected TV content, or more than 40% of their total time watching TV. This change has warranted a corresponding uptick in ad revenue within the ecosystem.

Roadblocks to sustainability

Despite the impressive growth, FAST channels face several challenges that could chip away at their apparent solidity.

1. Market saturation
   
   The rapid increase in the number of FAST channels has led to a crowded marketplace, so individual channels may find it challenging to stand out and attract a following.
   
   
2. Content quality and exclusivity
   
   To retain viewers, securing high-quality, exclusive content is crucial. As competition intensifies (see #1), content rights costs may rise, potentially affecting margins (and, thus, profitability).
   
   
3. Ads-a-plenty
   
   Having to sit through too many commercials can really annoy people and sabotage the whole “lean back” experience. It’s a balancing act: loading just enough ads to meet your bottom line and then some, without burdening your viewers and risking revolt.
   
   
4. Measurement and metrics
   
   The lack of agreed-upon metrics across platforms poses challenges for advertisers, who are always seeking reliable data to ascertain their campaigns’ effectiveness. Developing industry-wide measurement standards just might help fuel FAST growth far into the future.

Gotta strategize to sustain

To hurdle over these obstacles, and to keep the arc of their FAST channels on the rise, industry players are putting several strategies to work.

First, they’re pouring cash into enriched metadata and personalization coffers. If improving user engagement is the holy grail, one quick way to make the pilgrimage is by perfecting content discovery and personalized recommendations. For instance, incorporating detailed information such as mood, theme, and setting can elevate the appeal of programming.

Second, they’re striking out into the content partnership and exclusivity world. Ah, the allure of scarcity. Collaborating with content creators and studios and calling dibs on exclusive programming can differentiate platforms from others, and attract devoted fans. For instance, Roku's partnership with ITV Studios led to the launch of new channels, including one showing only "The Graham Norton Show," both expanding its content library and picking up a built-in fanbase.

Third, industry experts are keen to put a new spin on ad formats. Less intrusive, more relevant ad formats such as interactive ads and shorter commercial breaks can elevate the viewer experience and mitigate ad fatigue.

And finally, as stated back in the roadblock section, execs are aiming to standardise data measurement and collection systems. Better measurements would build trust and investment in FAST, ultimately.

Punching above their weight

FAST channels have beefed up. They’re no longer bantamweights. Pluto TV, Tubi, and Freevee have stepped into the streaming ring, and they’re holding their own against bigger brands and getting a few jabs and hooks off.

Their story pits the main character (young, adaptable upstart) against the older guy (status-quo, fee-based streaming). And the plot line hinges on this twist: more and more, consumers pivot to the watch-this-ad-and-you-can-watch-this-show-free model of viewing TV.

Challenges exist, sure. Don’t they always? But the sustained growth in viewership, global reach, and robust revenue projections point to the trend (and perhaps fact) that the hype surrounding FAST channels at the outset is transforming into a sustainable business model.

By continuing to refine content offerings, ad strategies, and user experiences, such channels and their keepers may just maintain their trajectory, and cement their place in the future of TV.

Oh and by the way, Unified Virtual Channel lets you make FAST channels—and many more. (There’s always the elevator pitch, right?) So if you want that, or have any questions about the solution, just get in touch by email. Or take the product for a spin with a free trial.