FAST Channel Business Model for Content Creators and Premium Brands
FAST Channel Sustainability is a term View TV uses to describe the fair revenue flow between all FAST Channel stakeholders to grow broadcast businesses.
The requirement for a sustainable approach was identified to empower existing broadcasters or premium content creators to broadcast OTT FAST. Channels require enough revenue generation to sustain a FAST Channel business model as aligning with existing content ecosystem models is paramount.
View TV sees the biggest opportunities within the FAST Channels industry involving premium channel brands with premium content. Traditional Broadcasters seeking digital transformation and embracing traditional audience marketing provide the key to enabling mass streaming audience convergence.
What is the Broadcast FAST Channel Business Model?
View TV, working with its sister OTT Platform Kapang, has developed a sustainable Broadcast FAST Channel business model. This business model is based on decades of traditional broadcasting data recorded during the growth of the Connected TV service.
The Broadcast FAST Channels business model enables premium content owners to launch a sustainable FAST Channel. Broadcast FAST Channels use Live Streaming TV technologies married with existing proven content workflows to acquire & create fresh content.
The Broadcast FAST Channel model generates growth and content creation opportunities using a sustainable content ecosystem approach. Traditional fixed technology fees are charged replacing unsustainable revenue share models to align with existing broadcaster businesses and financiers.
View TV using the Kapang CTV Platform delivers 100% of the advertising ad revenue generated per channel back to the broadcaster. This revenue is independent of trading results, giving all yielding based on effort back to the broadcaster. Kapang charges a sustainable fixed fee starting at $4cpm for delivering the platform to the audience. This fee is independent of CDN and SSAI fees and replaces revenue share models used by most existing OTT Platforms. Each Broadcast FAST Channel receives 100% of advertising revenues generated with achievable gross profits exceeding 70%
How can I deliver a Broadcast FAST Channel?
Broadcast FAST Channels must resemble traditional TV to qualify for the FAST2.0 model. This requirement does remove some origin channel technology providers punting VOD scheduling solutions. FAST Channel broadcasters should avoid cost-cutting VOD playlisting, Wurl, Ottera & Zype are examples of these solutions. Using traditional playout providers will ensure traditional TV features and experiences which are expected by audiences are not omitted. VoD scheduling has a single preprocessed video layer to provide simplicity. GPU graphics, channel bugs, lower thirds and dynamic transitions are unavailable, although they are key features audiences associate with TV.
The View TV team developed a solution for existing broadcasters and in-house playout solutions, Broadcast CDN. Broadcast CDN enables on-premise or managed service providers to distribute as a Broadcast FAST Channel and comply with FAST2.0. Simply view the Kapang channel integration and revenue calculator by clicking launch a fast channel.
Kapang receives channels from experienced managed service providers Globecast, Red Bee Media, ABS.tv and Encompass. The platform seamlessly integrates with Cinegy, Amagi, WiseDV & Grass Valley and more for on-premise TV playout solutions.
Kapang also paired up with View TV to provide self-service OTT Cloud Playout and Managed Service Playout, Cloudie TV. Cloudie TV is a broadcast-grade Cloud TV Playout solution that is prewired to enable the generation of amazing FAST channels.
Why have FAST Channels struggled to replace traditional services?
Early adopting FAST Channels created linear services in 720 HD via playlist software and distributed them to various OTT Platforms. These platforms have Websites, Device apps and Smart TV integrations for a wide audience engagement. Audiences want great-looking simulcast channels for free in 1080HD to replace their existing traditional TV services.
Most FAST Broadcasters generated cheapened linear services, but some were built by true broadcasters. Wild Earth, Fuel TV and Only Motors are great examples of Broadcast FAST Channels with results that applaud their efforts.
The majority of the FAST Channels are uncurated VOD scheduling services running video content around in order. This service is completely independent of time of day, and timezone with some even mixing genres and topics randomly.
View TV Engineers stated that in early 2021 a respected channel provider was delivering 1-minute ad breaks on some channels. The channels were actually making a greater loss as audiences grew across platforms. Nobody else had highlighted the errors previously so they were shocked to understand why the channel was failing. Broadcast-grade monitoring from View TV monitors the missed revenue opportunities and channel experience for viewers 24/7 to maximise revenue opportunities.
View TV delivers to many different platforms using proprietary technology, accurate ad break positioning and channel curation. Channels distributed to many platforms and only making a few dollars will definitely have issues relating to content, curation and/or user experience. All three points are related to producing a great lean-back viewing experience. Broadcast FAST Channels deliver a great experience independent of the platform they are listed on delivering 200-300% more viewing.
Did Content Agency style distribution models devalue FAST?
FASTCHANNELs.tv, Dooya TV and SOFast are examples of FAST Channel content agencies that have created a few hundred channels between them. These agencies provide content owners with a zero-cost FAST channel creation by morphing hundreds of video files into an uncurated playlist to provide a linear video experience to mimic television.
Our Team, shocked by the revenue figures shared by content channel owners, identified the problem that required a solution. These Playlisted FAST Channels with little curation were generating very little revenue which would never sustain content expansion. Playlisted FAST Channels are only providing asset value to the agencies and the trafficless OTT platforms they are distributing to.
OTT Platforms jumped on the same bandwagon
OTT Platforms that are fed by these agencies are lacking in audiences due to the poor channel quality which can only be accepted by a few people. These platforms have to take up to 50% of gross revenues for listing bad FAST channels but cleverly receive the balance sheet-based content asset value. These platforms have no monetary risk or direct motivation to scale and monetize the channels with no marketing spend to offset the agreed revenue share. The inevitable journey is that the same content remains on each platform channel which fails to gain audiences as the experience gradually loses more value.
How much of the FAST Channel Agency revenue is paid to the content owners?
FAST Channel Content Agencies were identified as taking up to 65% of NET revenues after substantial technology and platform fees. Agency content deals actually provide less than 20% of Gross Revenues back to Content originators with some half of that.
A sustainable FAST Channel, Ecosystem drives the FAST industry to align with the broadcast and makes premium content business models justifiable. Content owners should demand two-thirds of gross content revenues from ad-funded monetization, as they take the greatest financial & strategic risks.
Content Distribution agencies scaled quickly, promising zero outlay & zero risk riches to niche content and mothballed archive content rights holders. OTT distribution to Samsung Plus, Pluto TV and others excited content owners looking to monetize their content without abiding to broadcast channel strategies. FAST content agencies build channels cheap and were tempted by the automated VOD scheduling cloud playout solutions which avoided the need for expensive staff.
These agencies built large quantities of channels ironically FAST but should have restructured to produce a few premium channels with the same effort resulting in overall higher earnings. Investing in quick-to-market untraditional automated schedule curation technologies that only annoy audiences was a bad choice. These services provided unsustainable revenues and are a fundamental error in their greed to cash in on the FAST Channel Gold Rush.
What is the view of Premium Content Creators and Aggregators?
Initially, premium content owners witnessed bad FAST Channel experiences which scared them away as the business model just did not add up and they wanted to be distant from the lack of quality & regulation. Premium content and Broadcast channel owners have been monetizing content for a long time with some setting up their own platforms to avoid the public FAST chaos. Content owners did not want to run isolated services dedicated to their content and audiences do not want hundreds of mobile apps, but View TV identified the needs of all stakeholders.
We bring Broadcast FAST Channels and Premium Content owners to OTT Platforms and Connected TV Services with our sustainable Broadcast FAST Channel Ecosystem.
What are Broadcast FAST Channels from View TV Studios?
View TV Studios created a plan from the extensive experience and growth of the Live TV Streaming Platform Kapang. The team used data collected across devices and geographical areas to develop FAST FIRST business models as the Future of Free to View Television using Broadcast FAST Channels.
The FAST First development team within View TV have used audience patterns to curate FAST Channels for maximum returns. The FAST Channel approach from View TV provides mathematical customer content spending & optimum Fast Channel Monetization.
Broadcast FAST Channels are created, curated, scheduled and, marketed the same as any traditional television channels. Traditional channel delivery from broadcasters has been adopted, providing an identical service as existing contribution distribution to cable providers and satellite uplink stations. All channels are sent to Kapang via the Broadcast CDN Streaming TV CDN service to minimise the change within existing channel operation businesses.
Does the original model compare with Broadcast FAST Channels?
FAST Channels are created using an origin playout service. This HLS feed is distributed to platforms, adverting SSP trading platforms are interfaced and the channels awaited the audiences and revenues associated with the targeted ad technologies.
The revenue models of original FAST Channels differed depending on the origin solution and the platforms listing the channels on their EPG.
|Scenario 1||Scenario 2||Scenario 3||Scenario 4|
|Service Description||VOD Playlist TV||FASTChannels.tv||Amagi FAST TV||View TV Studios|
|Platform Rev/share||50/50 NET||50/50 NET||50/50 NET||No Rev/share|
|Costs for delivery||$0.03/hr||$0.00/hr||$0.04||$0.05|
|Ad fil Rev/share||80/20 NET||35/65 NET||75/25 NET||$5 cpm|
|Avg Channel CPM||$10 cpm||$7.70 cpm||$25 cpm||$18 cpm|
|Avg Hrs Viewed||35,000||2,650||200,000||65,000|
|NET Revenue Share||32%||12%||39%||66%|
|Avg NET Rev/Yr||$40,320||$1,028.41||$540,000||$243,360|
|Revenue per hour||$0.107/hr||$0.0323/hr||$0.225/hr||$0.312/hr|
|Est Rev @ 1m/hrs||$107k||$32.3k||$225k||$312k|
Summarizing Broadcast FAST Channels & drive your next steps?
Audiences want FAST to replace their existing cable & satellite platforms with a service that provides a better experience and a wider selection. Most technology FAST technology providers and newly created channel creators have cut too many corners to reproduce the experiences.
FAST operators using VOD scheduling software like Zype, Wurl, Ottera & Frequency to avoid >75% of the effort and cost usually associated with broadcast tv operations are realizing that audiences are not engaging to the required level which is being witnessed with broadcast FAST services.
VOD Playlist scheduling does not excite audiences who expect broadcast-grade replacements. Low-quality viewing experiences have driven down audience numbers which in turn has reduced advertiser CPMs revenues to almost the same level of user-generated content.
FAST Live Streaming TV works perfectly for channels and especially advertisers wanting accurate audience data and targeted advertising control. View TV and Kapang have created the FAST2.0 standard to lift the origin of these channels to a level appreciated by audiences and advertisers to deliver great Live Streaming TV channels with sustainable content revenues for FAST FIRST content acquisitions, content creation and even content commissioning.
So what are the options?
View TV has produced four simple levels of service for Content Owners, Brand Owners, Existing Broadcasters, Start-up FAST Channels and a mixture of all.
FAST OPTION 1 – Broadcast CDN – Ingest your channel from the existing provider
Broadcast CDN can take your existing broadcast television channel via a 1080HD SRT Streaming Ingest into the broadcast centre to be transcoded, monitored and delivered to Kapang and other platforms with all ad pod breaks 100% filled.
FAST OPTION 2 – Broadcast CDN – Ingest your on-premise Channel
Broadcast CDN can take your existing broadcast television channel from your onsite broadcast team via a 1080HD SRT Streaming Ingest into the broadcast centre to be transcoded, monitored and delivered to Kapang and other platforms with all ad pod breaks 100% filled.
FAST OPTION 3 – Cloudie TV – Self-service OTT Cloud Playout
Cloudie TV will provide access to a mentored web-based portal to upload, schedule and broadcast your live channel with GPU-powered graphics, live video feeds and transitional graphics to deliver a broadcast-grade channel experience.
The channel is then sent to the broadcast centre to be transcoded, monitored and delivered to Kapang and other platforms with all ad pod breaks 100% filled.
We will mentor all CLoudie TV channels to provide advice on maximising the success and revenues across your channel.
FAST OPTION 4 – View TV – FAST Channel Managed Service
View TV will take your content, provide media management and motion graphics and curation planning and brand guidelines to schedule and create and broadcast your live channel. All GPU-powered graphics, live video feeds and transitional graphics deliver a broadcast-grade channel experience using the Cloudie TV OTT Playout The channel is then sent to the broadcast centre to be transcoded, monitored and delivered to Kapang and other platforms with all ad pod breaks 100% filled.