UNDERSTANDING FAST | 1

Understanding FAST

Commissioned by
UNDERSTANDING FAST | 2

Introduction 1
What is FAST 2
Sizing the FAST Opportunity 3
Working With FAST 4
Q&A Section 5
UNDERSTANDING FAST | 3

An Introduction From Blue Ant Media

W
elcome to the first edition of Understanding FAST channel in the US and since then we have launched and offer customised programming solutions.
FAST, which we’ve commissioned as a gift to six additional curated FAST brands including HauntTV, His- We’ve seen our channel audiences multiply and our
the broader content community with the goal toryTime, Total Crime, Homeful, Love Pets and Drag Race revenues increase hand in hand with the growth of these
of demystifying the world of free ad-supported streaming Universe. Our FAST business is gaining a foothold in the new platforms and look forward to sharing continued
television (FAST). As channels and operators have gal- exploding US market and we are subsequently expanding successes with all of you, our partners. We hope you
loped into this brave new world with zeal, many in the its reach around the world as FAST platforms continue to glean meaningful takeaways from our report to help you
production community have been left wondering what grow globally. As such, our distribution business has been navigate this thriving new TV landscape. As always, we
FAST is and more importantly, what it can do for them. mining FAST opportunities from the get go. Our front-line look forward to discussing how we can work with you to
At Blue Ant Media we have been at the vanguard of the knowledge and connections across FAST platforms posi- maximise your opportunities in the FAST space when we
FAST evolution. In 2020, we launched Love Nature as a tions us well to help third party producers place content next meet!
UNDERSTANDING FAST | 4

What is FAST?

F
AST stands for free ad-supported streaming televi- FAST Channel: A pre-programmed, linear video channel, typically found and viewed on connected TV (CTV) devices.
sion. When defining FAST, a distinction needs to be with scheduled ad breaks, which is delivered over the open In the case of TV OEM (original equipment manufacturer)-
made between a FAST service and a FAST channel: Internet through a FAST service. A FAST channel owner owned services – such as Samsung TV Plus – the service is
FAST Service: an over-the-top (OTT) video service, or will not necessarily own the service(s) through which it is usually integrated at a system level within a smart TV. Other
platform available online – delivered over the open Internet delivered, but will have control over ad placement, content FAST services are typically distributed as individual video
– that offers a collection of pre-programmed linear video curation and programming. Depending on the carriage apps through a CTV platform’s app store, although some
channels to users, which contain scheduled ad breaks. agreement with the FAST service, FAST channel owners may come pre-installed on smart TVs where an agreement
Prominent examples of such services include Samsung TV can also have control over the sale of a portion of ad in- has been made between the FAST video service provider
Plus, LG Channels, Pluto TV and Rakuten TV. The channels ventory. Crucially, channels are curated rather than being and a CTV manufacturer.
usually comprise a mix of a service’s owned-and-operat- algorithm driven. In many ways, they tap into a consumer This, combined with the fact that FAST service user
ed channels and third-party channels from partner content preference for passive, “lean-back” viewing and offer an interfaces (UIs) typically resemble a traditional TV electronic
owners. These services typically also include an ad-sup- alternative to on-demand content and services. program guide (EPG) and – in some instances – are actually
ported on-demand (AVOD) element Though many are device-agnostic, FAST services are integrated within the core smart TV EPG, means that FAST
UNDERSTANDING FAST | 5

channels and services primarily resemble traditional

TV in all but broadcast and – to an extent – advertising
technology. In other words, what sets FAST channels apart
Top 10 Global Markets for Connected TV Households - 2022 from traditional linear ad-funded TV channels is, principally,
how they are distributed, via digital networks that are fully
addressable and are therefore perfectly suited to targeted
US 90.3
advertising. The FAST advertising buying environment
Brazil 33 currently more closely resembles that of digital AVOD than
traditional TV, with programmatic deals more prevalent than
India 29 direct buys, but many in the industry believe that FAST,
AVOD, and linear TV should all be seen as individual parts of
Germany 21.7 a converged advanced TV marketplace.
A variety of channels are available on FAST, including pre-
Russia 18.3
existing traditional linear TV channels, retooled on-demand
UK 14.6 services, and “FAST-native” channel brands. Companies
that have not previously operated channels are converging
Japan 14.2 on the FAST channel space, including device manufacturers
seeking to offset declining hardware margins and content
Mexico 13
distributors looking for incremental revenue from advertising.
12.5 Channels that have been created specifically for FAST are
France
the most significant category. Many are operated by owners
Italy 11.7 of program libraries looking for innovative ways to monetise
their content, either by packaging them into a targeted genre
TV Households (m) or by scheduling episodes of a single show.

What is Driving FAST Outside the US?

Source: Omdia
Omdia data shows that 2022 saw free online video
surpass free TV in terms of viewing time in key markets.
Yet this shift online does not mean that consumers want
UNDERSTANDING FAST | 6

Select 10 Markets: Primary Format Used For Free Viewing Within Household, 2015 to 2027

100%
90%
80%
70%

Share of Viewing
60%
50%
40%
30%
20%
10%
0%
2015 2017 2019 2021 2023 2025 2027

Free TV Free online video

Note: Total of 10 selected markets | Source: Omdia

an entirely on-demand experience—the lean-back, linear The dynamics are different in markets with a strong FTA as Samsung TV Plus, LG Channels, and Paramount’s
TV viewing experience is still of great value to many TV presence, where traditional broadcast remains the Pluto TV – are now available in most countries in the
viewers. This is evident in the rise of FAST services, easiest way of consuming free, pre-programmed linear TV. region as well as other global regional markets such as
especially in the US, where such platforms are serving FTA TV’s role, as the primary mode of linear consumption, Latin America and Asia. Other regional European players,
as effective replacements for linear pay-TV subscriptions is strengthened even further in markets such as the UK, such as Rakuten TV, offer their own FAST service and
among cord-cutters. Without a widespread, national where consumers are required to acquire a TV License channels across almost all of Europe, in addition to other
free-to-air (FTA) TV market (i.e. one that uses traditional to watch linear broadcasts, regardless of whether that OTT video activities. Clearly, despite such inhibitors,
broadcast technology to distribute TV channels to homes is through traditional broadcast technologies or through service operators believe that the increasingly online,
for free), FAST services represent the most frictionless FAST services. Yet, this does not mean that FAST cost-sensitive and young audiences – and the CPMs that
way to enjoy the popular linear TV experience in the US, does not have an important role to play in the Western they generate from advertisers – are valuable enough to
without having to pay for it. European market and major global FAST services – such make the region’s market an attractive area of operation.
UNDERSTANDING FAST | 7

2021: Cross-Platform Viewing Time by Country

In markets where FTA TV remains dominant, CTV
manufacturers’ moves to blend FAST channels with linear 2020
AU
broadcast channels in the EPG – in turn making the two 2021
indistinguishable to the average consumer – will likely
2020
boost FAST viewing and revenue over the coming years. SW
2021
This forms part of CTV manufacturers’ global efforts to
funnel more viewers towards their owned-and-operated 2020
NL
FAST services, especially as they become more reliant 2021
on their services businesses, rather than hardware, for 2020
profitability. It’s worth noting that CTV manufacturers’ ES
2021
growing role as gatekeepers in the CTV content market is
2020
likely to bring increased regulatory attention – especially IT
if it comes at the detriment of public service broadcasters 2021
in certain markets. 2020
DE
Outside of North America, Europe and a handful of more 2021
advanced economies in APAC, FAST remains a largely
2020
nascent and uncertain prospect. Even in markets that seem FR
2021
primed for premium ad-supported video services, such as
India, the generally lower advertising yield combined with 2020
UK
low CTV and high-speed internet household penetration, 2021
has some in the industry questioning whether FAST exists 2020
as a profitable pursuit in the country – at least in its current US
2021
guise. Although Samsung TV Plus is present in India,
50 100 150 200 250 300 350 400
much of the movement into FAST from Indian content
Minutes (per person per day)
owners has focused on serving diasporic audiences
Linear PVR time-shifted Pay-TV VOD Online long form Online short form Social media video
living in more advanced markets, such as the US and the
UK, where FAST channels are likely to be more profitable, Source: Omdia. Reference Nielsen, BARB, Mediametrie, AGF, Auditel, Kantar, SKO, MMS, OzTAM, Sensor Tower
UNDERSTANDING FAST | 8

rather than local viewers. This is a trend that we are likely

USA Households With Pay TV, Connected TV (m)
to see in other emerging markets. And, although other key
markets, such as Brazil and Latin America, are showing
90
promise, mature western markets, particularly the US,
are where most of the money will come from in the FAST
80
segment, at least in the near-to-medium term.

Households (m)
70
How Do Content Owners Make Money
From FAST?
60
The FAST ecosystem offers multiple routes to monetisation
for content owners, but the viability of each option largely
50
depends on the size of the company in question.
The biggest content owners have the potential to create 2019 2020 2021 2022 2023 2024 2025 2026
– or acquire – their own FAST platforms and services.
Paramount (then Viacom) exercised this option when it Pay TV HH Connected TV HH
acquired Pluto TV in 2019, while multiple broadcasters
Source: Omdia
and channel groups in the US, as well as ITV in the
UK, have added FAST channels to their core direct-to-
consumer video platforms. This option gives content own FAST channels and licensing them to FAST service In a revenue-share model, the platform owner is
owners full control over distribution and monetisation, but providers. This is less capital intensive than creating a responsible for selling advertising inventory and agrees
requires significant upfront investment and, should such standalone app, but still gives content owners the ability to pay a share to the channel provider. This is usually split
players wish to offer more than just their own-branded to retain a decent amount of control over the content 60/40 in favour of the channel provider, although 55/45 or
FAST channels, involves entering carriage agreements and advertising shown on their channels. However, this 50/50 splits are becoming more common.
with other channel owners and negotiating ad revenue/ approach still brings complexities and requires a hands- Inventory share is the dominant model in the US market.
inventory shares with CTV platform operators which on approach when it comes to striking commercial deals This is where the channel owner allocates some of the
typically take a cut of advertising inventory from third- with FAST services. Business models for FAST channels advertising spots to sell itself. In both inventory and
party apps distributed on their platforms. typically fall into three main types: revenue share, inventory revenue share models, part of the ad revenue will go to
Content owners also have the option of programming their share, or flat fee. the technology partner.
UNDERSTANDING FAST | 9

Under a flat-fee model, the channel or content owner

agrees to provide its content to the platform in return for
an agreed annual fee. This is a less common model.
Content owners looking to take a more hands-off approach
to monetising their (often legacy) intellectual property (IP)
through FAST channels can, meanwhile, look to license
their content to FAST operators and aggregators for use
in their O&O FAST channels. Although CTV manufacturers
are becoming increasingly selective in licensing content,
there is a new emergent class of FAST channel operators,
which will take content from smaller content owners, pack-
age it into channels, aggregate those channels with other
FAST channels and then distribute said channels to FAST
services and platforms. In these instances, the advertising
element of FAST is also operated – or at least managed
– by the aggregator, which then pays out a share of adver-
tising revenue to the content owner after taking a cut itself,
significantly reducing complexity for the content owner.
UNDERSTANDING FAST | 10

Sizing the FAST Opportunity

Advertising’s Share of Total Video Revenue The general movement of consumers from free TV much more mature US market, but clearly FAST has not
is Growing towards free online video is also a key driver of ad-based yet replaced traditional linear TV in the minds of viewers
Advertising is already a key component of TV and video online video monetisation, as advertisers start to follow or advertisers.
monetisation: it already accounted for 51% of global eyeballs from traditional TV and towards digital and CTV Nevertheless, the FAST environment – which sits at
revenues in 2022. But, its share is set to grow over the environments en masse. the intersection of linear TV and digital video – has the
coming years as more subscription-based video platforms Yet, the appeal of traditional linear TV still holds for ability to offer both the addressability of digital and the
start to reach saturation point among increasingly cash- many large advertisers, which continue to value the mass, premium content and audiences of traditional TV. This
strapped consumer audiences and turn towards ad- simultaneous reach it can offer. Indeed, currently FAST puts it in a great position to capitalise on this consumer
based monetisation models to curb churn and maximise channels account for just over 2.5% of total global linear and advertiser shift towards premium, ad-supported OTT
audience monetisation. TV and video ad revenue. This rises to just over 5% in the video platforms.
UNDERSTANDING FAST | 11

Total Global Video Revenue by Business Model, $bn, 2022-2027

100%

90%

80%

70%

60%

Revenue ($bn)
50%

40%

30%

20%

10%

0%
2022 2027
Pay TV subscription Traditional TV advertising Online video subscription Transactional Online video advertising
Source: Omdia

FAST Revenues Will Almost Triple to $12bn Much of this growth will be driven by the US which revenue growth will be quickest outside of the US over the
Between 2022 and 2027 accounted for almost 90% of the global FAST channel coming years, driving its share of global revenue down to
FAST channels have been around in some shape or market with a value of just under $4bn in 2022. By 2027, 84% by 2027.
form for at least the last five years, but they have only the US FAST channel market will exceed $10bn in revenue,
more recently become a mainstream revenue generation making it an attractive destination for global IP and content
opportunity. On a global basis, FAST channel revenue owners looking to broaden monetisation opportunities.
grew almost 20X between 2019 and 2022 and will almost Indeed, there is a significant opportunity to target diasporic
triple to reach a value of more than $12bn by 2027. audiences residing in the country. However, FAST channel
UNDERSTANDING FAST | 12

Global FAST Channel Revenue, US vs Rest of World (RoW), $bn, 2019-2027

12
12
10
10
8

Share of revenue (%)

8

Share of revenue (%)

6
6

4 4

2 2

0 0
20192019 2020
2020 2021
2021 2022
2022 2023
2023 2024
2024 2025
2025 20262026 2027 2027
US RoW
US RoW

Global Share of FAST Channel Revenue, US vs Rest of World (RoW), % , 2019-2027

100%
100%
90% 11% 13% 13% 15% 15% 16%
90%80% 11% 13% 13% 15% 15% 16%
80%70%
70%60%
Revenue ($m)

60%50%
Revenue ($m)

89% 87% 87% 85% 85% 84%

40%
50%
30% 87% 85%
40% 89% 87% 85% 84%
20%
30%10%
20%0%
10% 2022 2023 2024 2025 2026 2027
0% US RoW

2022 2023 2024 2025 2026 2027

US RoW
Note: Global total excludes China | Source: Omdia
UNDERSTANDING FAST | 13

A $2bn revenue opportunity will emerge for Germany and Brazil, which will be in third, fifth and sixth The FAST opportunity in the UK has grown rapidly in
FAST channels outside of the US by 2027 place respectively, in terms of market size, will offer recent years, with UK FAST revenue having grown 180X
mainstream FAST opportunities for French, German and between 2019 and 2022, and strong growth is expected
Portuguese-language content. Spanish-language content over the next few years. The UK market’s leading position in
Top-Five FAST Channel Market will also be crucial in catering for Hispanic audiences in FAST will come alongside robust expansion of its premium
Revenue Outside of the US, $m, 2027 the US, and a growing base of viewers in Latin America, ad-supported online video segment, which will grow by
where FAST revenue will exceed $200m by 2027. Indeed, $1bn between 2022 and 2027 to reach a value of $3bn.
500 506 Spanish-language FAST channels are already a fixture of Despite its smaller scale, FAST will take 40% of this growth
many US FAST services. Meanwhile, Omdia forecasts that over the next five years as UK FAST revenues quadruple
FAST channels in Germany will generate just over $200m between 2022 and 2027 to top $500m.
400 in 2027, when those in Brazil will hit revenues of $100m
– representing around half of the total Latin American
UK FAST Advertising Revenue,
FAST market. Even so, Europe will be the second-largest
317
307 2021-27, $m
300 regional market behind North America in value terms, with
Revenue ($m)

FAST revenue expected to exceed $1bn by 2027.

500 506

214 447
200 Yet, three of the five-largest individual FAST markets
400
outside of the US in 2027 will be English-speaking nations 379

Advertising revenue ($m)

– namely the US, UK, Canada, and Australia. The UK FAST
100 101 300 294
market will be worth over $500m by 2027. Meanwhile, the
Canadian and Australian FAST markets will both exceed
206
$300m in value during the same year. Led by the UK, these 200
0
three markets, which each enjoy a significant overspill of 128
UK Canada Australia Germany Brazil
106
Source: Omdia
content from the US, will account for over half of non-US 100

FAST revenue by 2027.

FAST revenue outside of the US grew by almost 50X 0

between 2019 and 2022 and, as more FAST revenue is FAST will account for nearly 20% of the UK’s 2021 2022 2023 2024 2025 2026 2027

generated outside of the US, the role of non-English $3bn premium online ad-supported video
Source: Omdia
content is only set to grow in the FAST market. Canada, market by 2027
UNDERSTANDING FAST | 14

This will give FAST a 17% share of premium video Despite the continued popularity of traditional linear TV launch in December 2022. By 2027, Omdia estimates that
advertising revenue in the UK by 2027, with AVOD in the UK, local TV market leaders are already turning their FAST will account for almost 10% of revenues derived
accounting for the remaining 83%. This puts the UK in the attention to FAST. For instance, FAST channels became a from advertising against linear TV and video channels –
same ballpark as the US, and far ahead of the 5% global core component of leading commercial broadcaster ITV’s i.e., the combined total of linear TV advertising and FAST
figure outside China, when it comes to FAST’s share of revamped streaming proposition, ITVX, sitting alongside revenue.
premium video advertising revenue in 2027. simulcasts of its traditional linear TV channels upon
Meanwhile, the UK’s high levels of smart TV adoption,
favourable CPM rates, and diverse audience base
make it an ideal international expansion opportunity for
UK AVOD and FAST Revenue, 2021-27, $m
global FAST service providers, channel operators and
content owners. Indeed, many of the largest global FAST
4000 100.0% services – including Samsung TV Plus, LG Channels,
Amazon Freevee, and Pluto TV – are already live in the
Advertising revenue ($m)

80.0% UK and attracting viewers. Indeed, according to Omdia’s

3000
506
consumer research, usage of each of these FAST-enabled
447
379
294 60.0% services is a weekly habit for between 5 and 10% of UK
206
2000 128
online video viewers. On the whole, 15% of UK online
106 video viewers used one or more FAST services on at least
40.0%
a weekly basis as of November 2022.
1000
20.0%

0 0.0%
2021 2022 2023 2024 2025 2026 2027

AVOD FAST FAST% Share

Notes: Premium online ad-supported video refers to services offering primarily long-form professionally produced content –
such as ITVX, All4, Pluto TV, Freevee, Roku Channel, Samsung TV Plus, Rakuten TV and others.

Source: Omdia
UNDERSTANDING FAST | 15

Monthly Usage of Selected Ad-Supported Online Video Services in the UK,

by Frequency, November 2022

25%
Proportion of online video users (%)

20%

15%

10%

5%

0%

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ch

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us

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ub
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ne

re

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v

Pl
at
kT

an
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ut
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Multiple times a day Once a day Multiple times a week
Once a week Multiple times a month Once a month

Note: Q: How often, if at all, do you use the following TV/video services? n = 2,319

Source: Omdia
UNDERSTANDING FAST | 16

The Largest FAST Services Already Reach MAUs, buoyed by its broad geographical presence, Channel, the US will account for under 50% of MAUs
Tens of Millions of Viewers already available in 30 countries. by 2027. While the US may dominate when it comes
The addressable audiences for FAST channels have Services operated by connected TV device to monetisation potential, overall reach is clearly a very
exploded in recent years with the largest global FAST- manufacturers – namely Samsung TV Plus, Roku different matter.
focused services serving tens of millions of monthly active Channel, and LG Channels – will be key runners up over We will therefore likely see the rise of regionally focused
users (MAUs) across the globe. Although user growth the forecast period, as they increasingly seek greater FAST services in the coming years, targeting more
starts to plateau over the forecast period – especially in profitability through advertising and service revenue. nascent FAST markets. Rakuten TV, for instance, is not
the more mature US market – the number of FAST users The US’s share of these total audiences is notably yet available in the US, but is emerging as a key FAST
will continue to grow for the foreseeable future. much lower than its share of revenue, which is driven by service in Europe. The European market is a number
By 2027, Omdia expects Paramount-owned Pluto TV – much higher ad spend per capita and higher costs-per- of years behind the US when it comes to FAST uptake
a key player since the FAST sector was first established – mille (CPMs), or ad prices, in the country. Indeed, for all among both consumers and advertisers.
to be the largest FAST-focused service in terms of global of the top-five FAST-focused services except the Roku

90

Monthly active users (millions)

80
70
Global Monthly Active Users of
60
the Top-5 FAST-Focused Services,
50
Millions, 2019-2027
40
Note: Omdia has only included services which it estimates generate 30
at least 40% of their ad revenue from FAST channels in this analysis.
Rakuten TV total represents users in Denmark, Finland, France, Ger- 20
many, Italy, Netherlands, Norway, Spain, Sweden, and the UK only.

Source: Omdia
10
0
2019 2022 2027

Pluto TV Roku Channel Samsung TV Plus LG Channels Rakuten TV

UNDERSTANDING FAST | 17

Working With FAST

What Type of Content is Suitable for FAST? In the US, local news channels have carved out an important genre or target audience. A number of FAST channels
Channels currently distributed on FAST channels have niche on FAST. News was the top FAST channel genre is the are single-IP offering episodes of a single program.
converged on this space from a variety of different US according to Amagi, with 33% of hours of viewing ahead These could be scripted (Midsomer Murders, Heartland,
places. Many have existed before on other platforms as of 8% for movies and crime, 7% for entertainment and 3% Doctor Who) or unscripted (Deal or No Deal, Survivor,
ad-funded streaming channels available over the open for sport (Amagi Global FAST Report Edition #5). News is the Project Runway). As a rule, programming has already
internet or apps; YouTube channels; or channels which leading genre in APAC (14%), but in Europe, documentary been licensed, often through more than one cycle,
were previously mainly distributed on pay-TV platforms or channels are number one (15%) and in Latin America, movie although rights of course have to be free of holdbacks or
terrestrial networks. For these channels, FAST is essentially channels (21%), according to Amagi. exclusivity agreements. These programs must also have
a means of aggregating different services on a dedicated An increasing number of channels are FAST-native. a strong brand recognition and an audience familiar with
digital platform. These are typically focused around a niche programme the content from previous airings.
UNDERSTANDING FAST | 18
served the same program when they tune in.
Original programming is rare on FAST. The economics
FAST Channels on US Services: News and Non-News of FAST at present do not provide the model to make the
500 investment cost-effective. However, programming is not
necessarily confined to repeats: Fremantle’s UK American
400 Idol channel, for example, features episodes of the show in
their first UK TV window. Pluto TV has also aired episodes
300 of shows like Yellowstone to promote airings on SVOD
service Paramount+.
200
As FAST platforms roll out worldwide (Pluto TV is in 30+
countries while Samsung TV Plus is offered in 24), channel
brands are appearing in multiple different languages and
100
territories. It is essential for content to be localized with
dubs or subtitles according to the preference of viewers
0 in the country concerned. Channels are usually curated
locally so scheduling will vary even for single-IP channels.

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TV

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Fr
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Pl
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What are the Options for Launching a
LG

su
Ro

Sl

o
m

zi
FAST Channel?

Vi
Sa

While FAST channel operators have emerged from many

News Non-News
different parts of the industry, the same can be said of the
Source: Omdia
companies operating FAST channel platforms.
Pluto TV was created by Tom Ryan and Ilya Pozinn
How are FAST Channels Programmed? recognise them and know what to expect. in 2013 with the initial idea of creating a “really good
FAST is often described as “lean-back” entertainment Channel owners say that 100–150 hours of content (per recommendation engine” for online video that was hard
designed for people wanting to relax with minimal effort. quarter) are required for a FAST channel. For multiseries to find. At the time, a free, ad-supported linear product
Audiences will not research a channel, so its purpose needs channels, it is recommended that content is shown in two- was diametrically opposed to the prevailing wisdom that
to be clear through its branding. The name of the channel to-three-hour blocks. Scheduling may be organised in- the future would be about on-demand, ad-free content.
often highlights its genre or niche. This is a reason for the house by the content owner or by the software provider, PlutoTV is now owned by Paramount and is available in
success of single-IP channels: audiences immediately but it is vital to ensure that audiences are not repeatedly 30+ countries around the world.
UNDERSTANDING FAST | 19

PlutoTV has in-house channel managers who program

Samsung Plus TV Channel Genres by Country
and schedule FAST channels on behalf of third parties
100%
and also handles ad sales. A similar approach is followed
by other FAST channel platforms like Rakuten and Roku. 90%

Roku, for example, curates a FAST channel for the UK 80%

newspaper The Guardian, while Rakuten manages
70%
channels for multiple clients in several countries.
Korean TV set manufacturers Samsung and LG are also 60%

leading players in FAST. Samsung has been offering a

50%
package of FAST channels, branded as Samsung TV Plus,
on its connected TV sets since 2015. While Samsung does 40%

not operate any channels itself, it does have exclusive 30%

FAST channels in some countries. In the UK, for example,

20%
it operates a TV channel with the TV chef Jamie Oliver
and in Germany operates factual channels with public 10%

broadcaster ZDF. 0%
LG has been in partnership with Xumo, the streaming joint

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since 2016. Xumo provides channels to the Korean group
US Canada France Germany Italy Spain UK Australia Brazil
under the LG Channels brand name and also operates via
Source: Omdia
its app in the US.
As mentioned above, FAST channel providers have a range
of options for FAST channel platforms. Most channels are UK broadcaster ITV entered the FAST area in December supported broadcasters, pay-TV operators and telcos in the
distributed on multiple platforms, in the interest of securing with the launch of 20 channels on its ITVX platform. All were coming months. As FAST evolves, platforms are looking to
the widest possible distribution. However, some platforms exclusive at launch and featured ITV programming such improve the quality of channels and providers. While there
(such as Samsung TV Plus) are now offering exclusive as Hell’s Kitchen, Inspector Morse and The Chase. NBC- is nothing new about free channels, FAST channels offer
channels. We also understand that platforms are becoming owned Peacock in the US offers a package of free streaming the potential to add stickiness to on-demand propositions
more selective and dropping channels that are not delivering channels – some wholly-owned and some third-party. as well as optimising content catalogues by opening them
the desired level of viewing. Omdia expects to see further moves into FAST from ad- up to more viewers.
UNDERSTANDING FAST | 20

Pluto TV Quarterly MAUs and Revenues

90
350
80

300 70
Revenues ($m)

MAUs (m)
60
250
50

200 40

2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q 2022 3Q 2022 4Q

MAUs (m) Revenues ($m)

Source: Omdia, company reports

How Does FAST Fit in Within Existing For consumers, FAST channels are a return to the
Revenue Streams? habit of linear, scheduled TV. On the business side, they
FAST does not change the fundamental structure of the are an opportunity for IP owners to generate incremental
TV market. Premium content – especially high-end original revenue from their libraries of content. Production groups
productions and sports – will continue to drive audiences like Banijay now employ channel managers and editors
and subscription bases for mainstream free TV channels alongside producers and program sellers.
and subscription services. Mainstream terrestrial and The rise of FAST and AVOD has potentially increased the
pay-TV channels will be little affected by FAST channels value of older content that has already been through two
which are likely to have a marginal impact on audiences or more distribution cycles. FAST channels based on deep
and revenues. However, some of the weaker or more niche IP libraries will not fundamentally change the distribution
channels struggling to secure carriage pay-TV platforms business, but will create useful incremental revenue
will continue to migrate to FAST or AVOD. streams for IP owners.
UNDERSTANDING FAST | 21

Country FAST Services

7Plus, 9Now, 10 Play, Plex, Fetch TV, Rlaxx, Samsung TV
Australia
Number of Channels on FAST Services in Major TV Markets Plus

Brazil LG Channels, Plex, Pluto TV, Rlaxx, Samsung TV Plus

500
Distro TV, LG, Channels, Plex, Pluto TV, Roku Channel,
450 Canada
Samsung TV
400 Distro TV, LG Channels, My TF1, Molotov, Plex, Pluto TV,
France
350 Rakuten TV, Rlaxx, Samsung TV Plus, SportsTribal TV

300 Distro TV, Freevee, Joyn, LG Channels, Magenta TV, Plex,

Germany Pluto TV, Rakuten TV, Rlaxx, Samsung TV Plus, SportsTribal
250 TV, Waipu.TV
200 Distro TV, LG Channels, Plex, Pluto TV, Rakuten, Rlaxx,
Italy
Samsung TV Plus, SportsTribal TV
150
Canela TV, Distro TV, Plex, Pluto TV, Rlaxx, Roku Channel,
100 Mexico
Samsung TV Plus, Tubi, ViX
50
Distro TV, LG Channels, Plex, Pluto TV, Rakuten TV, Rlaxx,
Spain
0 Samsung TV
Australia Brazil Canada France Germany Italy Mexico Spain UK US Channelbox by Freeview, Distro TV, Freevee, ITVX, LG
UK
Channels, Plex, Pluto TV, Rakuten TV, Rlaxx, SportsTribalTV
Plex Pluto TV Samsung TV

Source: Omdia Canela TV, Cineverse by Cinedigm, Distro TV, Estrella TV,
Freevee, LG Channels, Local Now, Peacock, Plex, Pluto TV,
US
Roku Channel, Stirr, TCL Channel, Tubi, ViX, Vizio
Watchfree+, Xumo Play
UNDERSTANDING FAST | 22

Q&A section Is any of the content in FAST channels still

under license elsewhere – to linear or on
Yes - we fully operate the channels from acquisition/
production to scheduling to marketing and operations.
demand?
Yes - some of our content is playing on other windows Which platforms do you distribute FAST
(linear TV, SVOD, etc). Much of it is library and it has had channels on?
Jamie Schouela
President, Global a first or second window elsewhere by the time it gets Blue Ant Media’s FAST channels are broadly distributed
Channels and Media, to our channels. We do ensure as much of it as possible on all of the major platforms in the US and are now
Blue Ant Media
is exclusive to our channels in the FAST environment to starting to launch in many other territories. These include
differentiate ourselves from our competitors. Roku, Samsung, Vizio, Tubi, Freevee, Sling, LG, etc.

What can you tell us about your business Which territories do you believe have the
How has your FAST business grown over the model – do you operate on a fee basis, revenue biggest potential for growth of FAST?
last 12 months? share, or inventory share? The US is still the most developed market and there’s still
We launched 6 brands in the US in the last year that are We operate either with revenue or inventory shares with lots of growth ahead as more audiences and advertisers
now available on multiple platforms - Haunt TV, Total the platforms. migrate to FAST. Other markets are 12-24 months behind it,
Crime, Homeful, HistoryTime, Love Pets and Drag Race but we believe FAST will grow globally in the coming year.
Universe - while also adding distribution for Love Nature. How much content do you need (in hours) to
We also launched brands in Canada, the UK, Australia, operate a FAST channel? How often would you Do you plan to launch more FAST channels in
parts of the EU and Latin America. replace/refresh it? 2023, if so, in which territories and what kind
We like to launch with at least 200 hours and add an of channels?
What type of content works best on FAST? additional 100 each year to keep it refreshed. At the start of 2023 we just launched a few more FAST
We focus on genre-based channels - natural history, channels in the US including our first channel focused
home, crime, paranormal, etc. - these genres are great for Do you program and schedule the channels on a single franchise - Drag Race Universe, which is
lean back viewing, which works well on FAST channels. yourselves? If not, who does it? programmed with international versions of one of the
UNDERSTANDING FAST | 23

biggest reality shows in the world. Additionally, we’ve What can you tell us about your business model
launched a cousin of Love Nature called Love Pets, – do you operate on a fee basis, revenue share,
focused on domestic animals and their care. Srinivasan KA or inventory share?
Co-founder & Chief We offer all three models: SaaS fee-based, revenue share
Revenue Officer,
What are the biggest challenges of entering the Amagi and inventory share.
FAST channels business?
The FAST business has become incredibly competitive, and How much content do you need (in hours) to
the platforms are being much more selective in launching operate a FAST channel? How often would you
new channels. To breakthrough you need exclusive content replace/refresh it?
and proven IP/series that audiences recognize. How has your FAST business grown over the To start a channel, you need at least 50 hours of
last 12 months? programming content. The programming wheel is
Our FAST business has grown 100% y-o-y. typically refreshed every 30 days with a refresh rate of
10-15%.
What type of content works best on FAST?
Natural history, home, News is a consistently high-performing content asset Do you program and schedule the channels
yourselves? If not, who does it?
crime, paranormal,
across regions. Old TV hits (episodic content) are also
making successful reruns on FAST. Movies, entertainment, We provide the tools and software to help content owners
etc. – these genres documentaries and sports are the other popular genres. program and schedule the channels on their own.
On certain platforms we have seen single IP channels
are great for lean perform better compared to other platforms. Which platforms do you distribute FAST
back viewing. channels on?
Is any of the content on FAST channels still un- To most of the FAST platforms including Samsung TV
der license elsewhere – to linear or on demand? Plus, The Roku Channel, VIZIO, Plex, LG Channels, Sling
Very few FAST channels are in this category. TV and more.
UNDERSTANDING FAST | 24

Which territories do you believe have the b) Understanding the demographics well and getting
biggest potential for growth of FAST? more regional/vernacular content options. Based
As CTV penetration is a major indicator of FAST adoption, on our latest FAST report (Europe-focused), we saw
the USA and the UK are currently the markets with the non-English-language channels gaining ground
most potential for growth - CTV penetration is at 80% in faster than their English counterparts.
the USA and 85% in the UK, as per the sixth edition of c) Exhausting ad inventory, being able to manage the
our Global FAST report. But the report also revealed that ad load well and keep it optimal for a better viewing
APAC and EMEA are quickly catching up. The Hours
of Viewing (HOV) grew by 320% in APAC and 111%
experience. 60%-70% of the
in EMEA in 2021-22, promising fresh opportunities for
content brands looking to enter the ecosystem.
What is the most common financial model
for FAST channels – revenue share, inventory revenues go to
share, or fee?
Do you plan to launch more FAST channels in
2023? If so, in which territories and what kind
As of today, a significant portion follows the revenue
share model, followed by inventory share. A very small
content owners
and 40%-30%
of channels? percentage of customers have a fixed fee model.
We are a technology provider for launching FAST channels.
We do expect significant demand from content owners Do you expect this to be different outside the
and platforms to launch FAST channels in 2023. US?
No.
to the platforms.
What are the biggest challenges of entering
the FAST channels business? In a revenue share, what is the typical split?
a) Being on popular platforms such as Samsung TV 60%-70% of the revenues go to content owners and
Plus and The Roku Channel that guarantee access 40%-30% to the platforms.
to audiences.
UNDERSTANDING FAST | 25

under license elsewhere – to linear or on programming mixed in. We do not run programming on
demand? a loop as that strategy doesn’t provide a great viewer
We run mostly original content on our FAST channels; it experience. Repeated programming blocks; that strategy
Jonathan Strauss
Global Head of Business creates differentiation and allows us to invest in growing is not effective.
Development, Tastemade the audience for a show without worrying if we will get the
next season or if anyone else has it on the same platform. Do you program and schedule the channels
We do license a handful of shows and some of those deals yourselves? If not, who does it?
are exclusive; it’s decided on a show-by-show basis. Yes, we program all of our channels ourselves.

How has your FAST business grown over the What can you tell us about your business Which platforms do you distribute FAST
last 12 months? model – do you operate on a fee basis, revenue channels on?
We continue to see strong growth, but that growth is share, or inventory share? We are available on almost all of the major platforms and
getting harder and harder to unlock. It takes continued We prefer to operate on an inventory share basis as we continue to launch on new ones each month. We don’t
investment in programming and marketing, as well as generally see that our fill rates and CPMs are significantly believe in necessarily being everywhere; we want to focus
partner editorial support. Two to three years ago, you higher, resulting in higher yield across the board. on those platforms that yield value.
could sit back and watch the channel grow organically;
that’s no longer the case. How much content do you need (in hours) to Which territories do you believe have the
operate a FAST channel? How often would you biggest potential for growth of FAST?
What type of content works best on FAST? replace/refresh it? We are seeing massive audience growth in Latin America
Our focus is on lifestyle. We find that quality matters as We are producing hundreds of hours of new programming and now revenue growth is starting to take hold. We also
does recognizable shows and talent, and consumers to run across our portfolio of channels each year. We expect Europe to start embracing FAST more aggressively
tend to choose to tune into a brand that they recognize. program the channels like a traditional proper television from an audience perspective.
network, paying attention to the different dayparts. Thus,
Is any of the content on FAST channels still each day’s schedule feels fresh and new even with repeat
UNDERSTANDING FAST | 26

Do you plan to launch more FAST channels in few channels have global sales teams. The platforms have What type of content works best on FAST?
2023? If so, in which territories and what kind more scale and can drive more value in smaller markets. Clearly targeted content that speaks to a particular
of channels? audience performs best. As such, we have a strong focus
Our focus is on growing our current offering in 2023. We In a revenue share, what is the typical split? on Factual, Reality and Lifestyle genres.
will continue to look out for opportunities that may make It varies by the level of the channel.
sense for us to see through, but the main focus is growth, Is any of the content on FAST channels still un-
not new channels. der license elsewhere – to linear or on demand?
We typically license non-exclusively. We believe (and
What are the biggest challenges of entering have done analysis to prove this) that it’s important to
the FAST channels business? reach the consumer where they watch the content (i.e.,
Richard Young
There are several: creating and growing brand equity; Director of Syndication, multiple platforms and potentially channels).
standing out in a hyper-competitive environment; driving Little Dot Studios
monetization. What can you tell us about your business model
– do you operate on a fee basis, revenue share,
What is the most common financial model or inventory share?
for FAST channels – revenue share, inventory We license and aggregate thousands of hours of content
share, or fee? How has your FAST business grown over the across our owned network of over 35 channels and 7 FAST
It varies, but platforms are increasingly looking to revenue last 12 months? channels, and offer rev share or license fees terms to dis-
share as everyone wants to sell ads; yet few are truly We’ve achieved triple-digit % YoY growth in watch time and tributors and producers. With the platforms we have both
good at it. impressions across our network of 7 FAST channels: Real revenue share and inventory share. To monetise our inven-
Crime, Real Stories, History Hit, Real Wild, Wonder, Real tory share we manage our own ad stack with more than 10
Do you expect this to be different outside Life and Don’t Tell the Bride (single series). We have also demand partners which is key to drive fill rate and CPM.
the US? signed 3 new platform partnerships over the course of the
Yes – sales teams on the ground in each market are key and last 12 months allowing us to reach additional audiences. How much content do you need (in hours) to
UNDERSTANDING FAST | 27

operate a FAST channel? How often would you of channels? In a revenue share, what is the typical split?
replace/refresh it? Yes. We are exploring all territories and we will predominantly That’s confidential! The challenge is there are lots of
We require a significant volume to be confident of be focussed on entertainment and factual. Watch this mouths to feed including ad sales commissions, platform
launching a channel (c. 300- 400 hours) and we refresh space. share etc.
the content regularly. Editorial and promotion is key.
What are the biggest challenges of entering the
Do you program and schedule the channels FAST channels business?
yourselves? If not, who does it? There are lots of challenges including securing distribution,
We have an in-house scheduling team so do this ourselves. management of tech and operations, ensuring the channels
are constantly refreshed and ensuring promotion and then Each day’s
Which platforms do you distribute FAST monetisation. We have launched our first channels more
channels on? than 2 years ago so have worked hard to be successful schedule feels
We are on more than 12 platforms in 20 territories including and future proof our approach.
Roku, Samsung TV Plus, Vizio, Amazon Freevee; we also fresh and new
What is the most common financial model for
even with repeat
have our own app, Veely.tv.
FAST channels – revenue share, inventory share
Which territories do you believe have the or fee?
biggest potential for growth of FAST? It’s mixed and varied. programming
We think all markets will grow. The US is still the biggest
but competition is increasing. Notably, we are seeing Do you expect this to be different outside the US? mixed in.
strong growth in the UK, Europe, Australia and India. Yes, typically bigger platforms in the US mandate revenue
share. Outside of the US, they are less advanced in
Do you plan to launch more FAST channels in monetisation.
2023, if so, in which territories and what kind
UNDERSTANDING FAST | 28

All of the above. The business landscape is so varied biggest potential for growth of FAST?
and so fractured that we have had to be very flexible and Latin America.
accommodating in our business models. This is the key
Greg Diefenbach
Managing Director, to success. Do you plan to launch more FAST channels
Alliant/Magellan TV in 2023?
How much content do you need (in hours) to Yes.
operate a FAST channel? How often would you
replace/refresh it? What are the biggest challenges of entering
We are creating and/or licensing approximately 500 hours the FAST channels business?
How has your FAST business grown over the each year. Platforms and gatekeepers are becoming more selective.
last 12 months? and over time, it’s quite possible that many platforms
Fast growth has been explosive. 48% increase in revenue Do you program and schedule the channels will create or strongly favor their own o&o channels and
in this space for us. yourselves? if not, who does it? deprecate third party channels.
Yes. Some channels — such as MagellanTV Now, are
What type of content works best on FAST? programmed directly by our team. Some channels on
FAST content success thus far looks much like successful some platforms are programmed by our platform’s
content in the former cable space, with a bit more partners. Again, flexibility has been key to success.
emphasis on niche programming. True crime continues to
perform. But our new Space Science channel has really Which platforms do you distribute fast Fast growth has
taken off. channels on?
Samsung TV plus, Vizio, Pluto, Freevee and many others.
been explosive.
What can you tell us about your business model Always a growing list.
– do you operate on a fee basis, revenue share,
or inventory share? Which territories do you believe have the
UNDERSTANDING FAST | 29

for us to directly reach global audiences and learn from you replace/refresh it?
What is the most common financial model them. There is not a magic number when it comes to the amount
for fast channels – revenue share, inventory of content needed for a channel. Generally thematic
share or fee? At Fremantle, we have a wealth of content, beloved channels require more hours than single title channels. At
Rev share by the platforms. brands and world-recognised IP and we also have local Fremantle, we’re proud to have a huge wealth of content
production capabilities in 20 countries around the world – and IP of world-recognised and loved brands.
we are in a great position to become a truly global player
in the FAST industry. Do you program and schedule the channels
yourselves? If not, who does it?
Valerio Motti
VP of FAST Channels, What type of content works best on FAST? Yes, we have a team based in the US who curate
Fremantle We know that FAST audiences appreciate niche and our channels. We are capturing data about content
nostalgia content that does not necessarily find its own consumption and habits, and we feed that back to the
space on Free To Air or Pay TV. At the same time, there teams involved in the channel creation and marketing, to
is also a strong appetite for recent shows. As platforms’ form an efficient cycle of communication and powerful
EPGs are getting crowded with more and more channels, cross-collaboration.
How has your FAST business grown over the well known IP works best for us.
last 12 months? Which platforms do you distribute FAST
It is undeniable that FAST is attracting more and What can you tell us about your business channels on?
more users. Whether it is due to SVOD saturation, model – do you operate on a fee basis, We work with all major platforms, and currently have
subscription fatigue, penetration of connected TVs, revenue share, or inventory share? channels running on Samsung, PlutoTV, Roku, Freevee
easy discoverability, reasonable ad-loads; FAST is here We operate with multiple business models. and many others.
to stay. FAST is a progressive next step in the evolution
of content distribution and is 100% compatible with our How much content do you need (in hours) to Which territories do you believe have the
business model at Fremantle. It is a great opportunity operate a FAST channel? How often would biggest potential for growth of FAST?
UNDERSTANDING FAST | 30

Outside of the US, we believe UK, Germany, Italy, Spain, We will be launching more genre and single title channels
France as well as Canada and Australia and indeed many in 2023.
other countries hold a lot of potential.
What are the biggest challenges of entering
Do you plan to launch more FAST channels in the FAST channels business?
2023? If so, in which territories and what kind FAST channels are real TV channels. In order to be
of channels? successful, you need to invest in editorial curation,
In addition to US, we believe that international growth is marketing, data analysis and technology.
going to be a big opportunity for us in the coming year.
We expect to launch additional great channels in the next
12 months both in the US and internationally namely UK,
Germany, Australia, France, Italy, Spain, and others.

In addition to huge hits like Baywatch, BUZZR, The Price

Is Right and Supermarket Sweep, we have recently
We know that FAST audiences appreciate
launched:
· The Jamie Oliver Channel: Over 300 hours of renowned
niche and nostalgia content that does not
chef Jamie Oliver’s programming. Combining Chop ’N
Chat, Travelogues and seasonal specials.
necessarily find its own space on
· Places and Spaces: the best architecture, interiors,
and home-related programming.
Free To Air or Pay TV.
· Let’s make a deal: Hosted by Wayne Brady, the
updated version of the classic gameshow
UNDERSTANDING FAST | 31

Matthew Bailey | Principal Analyst, Advertising, Omdia

Tim Westcott | Senior Principal Analyst, Digital Content & Channels, Omdia
Ed Ludlow | Senior Data Analyst, Digital Content & Channels, Omdia

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