FAST Video Offerings are On the Rise, Panelists Say

Consumers and advertisers are increasingly gravitating toward free ad-supported streaming television (FAST), from linear and on demand viewing, said panelists Tuesday at the Stream TV virtual advertising summit. FAST channels such as Amazon’s Freevee and Paramount’s Pluto are free, easy to access because many don’t require logins, and are increasingly offering a wider variety of high-quality content, said panelists from Tivo, Roku and Crackle. Combined with ad-supported video on demand, FAST offerings are starting to supplant MVPD video subscriptions, said Scott Maddux, TiVo vice president-global content strategy & business.

Six or seven years ago, consumers had to use whatever equipment the MVPD was giving them, said Alan Wolk, consultant at TVRev. “This gave an opportunity for the Amazons and the Rokus of the world to come in with their dongles and provide the user a way to interact with the content, to be able to get the various pieces of content in a very seamless way,” he said. Original equipment makers eventually woke up, he said: OEMs said, “I own the hardware, I can write the software and let me actually integrate the user interface into the entire panel itself. I have the remote control.”

The current trend is OEMs making connections seamless for consumers, Wolk said: “They don’t have to adapt a dongle. They don’t have to go and get something separate. It’s all in one.” Maddux said some MVPDs are offering broadband-only subscriptions that come with TiVo boxes for streaming video, replacing the cable package.

There are close to 3,400 FAST offerings streaming now, said panel moderator Peter Fondulas of Hub Entertainment Research. The early adopters of the channels were in younger demographics, but now the fastest growth in FAST viewership is among older viewers, Fondulas said. FAST channels that offer a branded, specific experience -- such as channels showing only westerns, showing only sci-fi, or offering a constant flow of James Bond films -- tend to attract viewers, said Maddux. FAST channels “can help solve decision fatigue,” said Katie Long, Beachfront head-demand.

Nielsen results show the channels growing audience faster than regular linear TV offerings, but only 20% of advertiser budgets are being spent on streaming, said Katina Papas Wachter, Roku Channel head-ad revenue strategy. Consumers and advertisers still need to be educated about FAST offerings, said Philippe Guelton, president of Crackle Plus.

Most households aren’t just cord cutters or linear TV viewers, said TiVo’s Walt Horstman. “Audiences are very fluid” and “move nearly friction-free” between traditional TV and streaming offerings, Horstman said. That means advertising campaigns on linear TV and streaming services can be used to amplify each other, he said.

Live events and sports remain the “last frontier” keeping viewers on linear TV over streaming, said Wachter. Streaming channels aren’t considered a destination for that sort of content, said Guelton. Local news is starting to be available over streaming offerings, but live sports is likely to take longer, said Maddux: "Sports are further away because of the high value of those franchises."