In this respect the most popular FASTs are Pluto TV (ViacomCBS), Xumo (NBCU), Tubi (Fox), Peacock (NBCU), The Roku Channel (Roku), IMDbTV (Amazon), and Samsung TV+ (Samsung).
Like AVOD, FAST services can be on-demand but FAST extends the offering by using dynamically inserted ads to provide linear channels to connected devices.
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Expanding to new platforms is the easiest way to add new viewers in bulk, which will increase ad revenue and/or subscriptions.ĪVOD (advertising-supported video on demand) has been around for years now, and it is expected that over $25 billion will be spent on ads in this space by 2025.Ī sub-category is now gaining traction, free ad-supported streaming TV services, or FAST, that allow viewers to watch streaming content for free. This is why mobile, CTVs and connected devices all made the top of the study’s “most important platforms” list. Viewers use multiple platforms and devices, and brands that want to monetize this tide of growth must be everywhere their viewers are. If anyone is still following a mobile-only strategy in the wake of Quibi - forget it. The study highlighted that most US cable companies are deploying “a matrix of monetization formats” to serve cable viewers and reach the growing audience that has cut the cord. “Many respondents plan to incorporate advertising in order to offer free (the price is right!) or reduced subscription tiers for viewers.” “Life after launch is uncertain, and as viewer behavior continues to change, brands plan to change their approach accordingly,” said Ido Hadari, CEO of Applicaster, the company that ran the survey. Let’s just take that in: they make more on advertising than they charge for their premium, ad-free package, which is currently $11.99.” - Ido Hadari, Applicaster “Hulu, one of the largest ad-supported content platforms, makes about $15 per month in ad revenue per subscriber. Most will add AVOD to their strategies, which will support offering lower, or free, price points.
More than three quarters of respondents plan to change their monetization model this year, or are considering making a change. Only 13% of total respondents rely solely on advertising or subscriptions. Three quarters of those say their business already relies on multiple revenue streams, from SVOD and AVOD to product placement and sponsorship. It polled 100 “streaming executive decision-makers” in broadcasting, direct-to-consumer video brands, and multichannel aggregators. “ The State of OTT Revenue 2021 Study” finds strong interest among media execs in diversifying their streaming revenue models. Ad supported tiers are already a part of strategies at Comcast’s Peacock, ViacomCBS’ Pluto TV and at Fox (which spent $440 million on Tubi), though not yet at Disney+, while analysts believe the brand cachet that Netflix has as a premium content destination will serve it better than diluting the platform with ads. WarnerMedia is the latest to announce plans for an ad-supported version of HBO Max later this year.
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Following the land grab for subscribers to new service launches, the focus is now on how to monetize those eyeballs. With billions being spent on content for streaming services attention is turning to how to return that investment.