FAST Channel Revenue Share: How to Balance the Interests of Content Creators and Platforms
FAST Channels, or free ad-supported streaming TV channels, are a new form of online video content that offers viewers a variety of programming without any subscription fees or sign-ups. FAST Channels can be either linear or on-demand, but the main difference from traditional TV channels is that they are delivered over the internet and supported by ads.
FAST Channels have several advantages for both viewers and content creators. For viewers, FAST Channels provide a cable-like experience, with a linear format and a guide, as well as the option to pause, rewind, or watch again live TV content.
FAST Channels also offer a wide range of content, from movies and shows to news and sports, catering to different viewer preferences and interests. Moreover, FAST Channels are accessible on various devices, such as smart TVs, mobile phones, tablets, laptops, etc., giving viewers more flexibility and convenience.
For content creators, FAST Channels offer an opportunity to reach a large and global audience of connected TV (CTV) users, who are more engaged and loyal than traditional TV viewers. FAST Channels also allow content creators to monetize their content through various ad revenue models, such as dynamic ad insertion (DAI), server-side ad insertion (SSAI), programmatic advertising, etc. Furthermore, FAST Channels enable content creators to leverage their existing content libraries and create curated channels that appeal to niche audiences.
However, creating and managing a FAST Channels can be challenging and costly for content creators. They need to have the right technology, infrastructure, distribution, and monetization strategies to ensure the quality, reliability, and profitability of their FAST Channel. They also need to share a significant portion of their ad revenue with multiple intermediaries, such as CTV platforms, ad tech providers, FAST Channel distributors, etc.
According to a report by S&P Global Market
Intelligence, the average revenue share for FAST Channel operators in the U.S. was 55% in 2022. This means that content creators only received 45% of their ad revenue after paying fees to various stakeholders. The report also projected that the revenue share for FAST Channel operators will decline to 50% by 2026, as CTV platforms will demand higher fees for their services.
This revenue share model is not sustainable for content creators who bear most of the costs and risks of creating and maintaining a FAST Channel. Content creators invest a lot of time, money, and resources in producing high-quality and engaging content for their audiences. They also face challenges such as compliance with different laws and regulations in each country where they operate, protection of their content from piracy and unauthorized use, competition from other FAST Channels and streaming services, etc.
Therefore, it is important for content creators to negotiate a fairer and more transparent revenue share model with CTV platforms and other stakeholders. Content creators should be able to retain a higher percentage of their ad revenue that reflects their contribution and value to the FAST Channel ecosystem. Content creators should also be able to access more data and insights on their audience behaviour and preferences, which can help them optimize their content strategy and ad performance.
By balancing the interests of content creators and CTV platforms, FAST Channels can achieve a win-win situation for both parties. Content creators can increase their revenue potential and sustainability while CTV platforms can benefit from more quality and diverse content that attracts and retains CTV users. This way, FAST Channels can continue to grow and thrive in the online video market.
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