Free linear ad-supported TV, or FAST TV, is nowhere near replacing traditional broadcast and pay TV, but FAST TV executives say they expect the business to overcome growing pains through 2022 and become much more mainstream.
FAST TV platforms, which mimic traditional lean-back linear TV streams, took a back seat to subscription and on-demand platforms for years, but the pandemic period ushered a boom in the model, panelists at a Jan. 13 TV of Tomorrow conference said. TV of Tomorrow is an annual expo that brings together traditional broadcast and pay TV professionals with digital next-generation video providers.
There are now over 1,000 FAST TV channels airing on about 23 platforms, Variety senior media analyst and panel moderator Gavin Bridge said. Many of those platforms are provided through connected TV manufacturers with default services preloaded on those devices, like Roku Inc.'s Roku Channel and Samsung Electronics Co. Ltd.'s Samsung TV+. Others are provided by traditional TV network operators, like Fox Corp.'s Tubi and ViacomCBS Inc.'s Pluto TV. Some industry observers expect revenues in the FAST business to double from 2021 to 2023.
However, many of those FAST platforms offer overlapping channel options. Panelists said they expect the business to normalize from its pandemic-era explosion of growth.
"There are a lot of content suppliers of varying levels of quality or varying types of content ... and I think over time you'll see some platforms lean one way in the type of content some they offer and others lean another way," said Mark Garner, executive vice president at A&E Networks.
While FAST TV is exploding in both competition and consumption, for now, A&E still sees the business as complementary to its subscription, broadcast and pay TV offerings.
Part of that hesitation is due to nascent standards in the industry for distribution and advertising. FAST platforms typically offer programmatic ad placement, but panelists agreed that maintaining control over the ad streams that run on their FAST networks is vital for both their relationships with consumers and with advertisers.
AMC Networks Inc., for example, requires that it has exclusive first sales rights for advertising on its FAST channels, Evan Adlman, AMC's senior vice president of advanced advertising and digital partnerships, said during the panel.
"It's important to have those sales rights. If you don't sell it, there are other ways to get it filled, but we are the first stop there. It also gives us the control to do promotions on those channels too," Adlman said.
The value proposition on many FAST networks is still uncertain, he continued. "Can you convert an audience to monetize it? ... Is that platform an effective conversion tool?" Adlman said rhetorically. "That's part of an equation that doesn't get talked about as often."
However, despite some of the challenges arising as the FAST industry develops, panelists agreed that 2022 and beyond will be breakout years for the model.
While there will be a shakeout and not all channels or platforms will survive, more and more dollars will go toward FAST, Glewed TV Chief Revenue Officer Andrew Budkofsky said during the panel.
The 2022 advertising upfronts will represent a massive return to business for mainstay marketers like automotive and travel after the pandemic crunch, Budkofsky said, and FAST channels are poised to take more of that cut than ever as dollars move from linear to connected TV platforms.
