As a longtime media consumer and industry observer, I find the rise of Free Ad-Supported Streaming Television (FAST) channels incredibly intriguing. The concept of channel specialization based on beloved franchises is reminiscent of my childhood days when I used to eagerly wait for my favorite shows to air on television. It’s like a modern-day version of comfort food for the digital age.
Is Europe moving quickly, but the U.S. moving even faster? In the U.S., the segment of FAST (Free Advertising-Supported Streaming Television) and AVOD (Advertising-Based Video on Demand) services has been a significant contributor to growth during a period when streaming has intensified competition within an evolving market. For instance, Fox Corp.’s Tubi, Paramount Global’s Pluto TV, Amazon’s Freevee, or The Roku Channel have all made notable strides in this area.
In Europe, where there has been historically more accessible free TV content, Free Ad-Supported Streaming Television (FAST) has not received much attention until lately. However, upcoming events at MIPCOM in Cannes may spark discussions and updates about it. This year, Tubi went live in the U.K., while Pluto TV formed a strategic commercial and editorial alliance with M6+, Groupe M6’s new AVOD platform in France, to boost their free streaming and digital ventures in the country. Recently, Sony Pictures introduced a 54-channel FAST package in Europe that offers popular content like Seinfeld.
Furthermore, Fremantle has reached an agreement to debut 25 FAST channels globally with Pluto TV in a broadened partnership for 13 nations like the U.K., Germany, Spain, Italy, and the Nordics. Each channel is tailored exclusively for specific markets. The lineup consists of popular shows such as “Escape to the Country”, “Three’s Company”, “Baywatch”, “Supermarket Sweep”, “Family Feud Classic”, “Let’s Make a Deal”, “The Price is Right: Bob Barker”, “The Price is Right: Drew Carey”, “Alarm for Cobra”, “Project Runway”, “Prisoner”, and “Jamie Oliver”.
BBC Studios, in collaboration with Pluto, introduced three channels related to “Top Gear” on FAST platforms in the Nordic region. At the same time, British public broadcasters BBC, ITV, Channel 4, and Channel 5 joined forces to generate income from their content libraries by launching a FAST service called Freely. Additionally, Swedish FAST company Staccs announced an expanded partnership with Samsung this summer, aiming to debut two new music video channels, Staccs TV Throwback and Staccs TV Celebrate, in the U.K., Spain, and Italy.
Maureen Kerr, who oversees Arthur D. Little’s media & entertainment division in the U.K., has noted that the expansion of FAST (Free Ad-Supported Streaming Television) services in Europe, the Middle East, and Africa is currently surpassing that of the U.S. According to her recent report, this rapid growth is due to the increasing competition for profitability and higher rates of customer turnover, which have prompted many companies to explore new business strategies. One emerging trend is generating revenue through advertising on FAST channels and AVOD (Advertising-Supported Video On Demand).
The key distinction lies in this: Advertising Video On Demand (AVOD) delivers video content accompanied by ads, as per its title. In contrast, Free Ad-Supported Streaming Television (FAST) focuses on providing both linear channels and on-demand content.
From the viewpoint of consumers, there’s a growing preference for flexible and affordable viewing solutions, especially among the younger generation, according to Kerr in an interview with THR. The surge of connected TVs has played a crucial role in this trend and will continue to be instrumental in the growth of Free Ad-Supported Streaming Television (FAST). In Europe, we’re observing a significant increase in connected TV penetration. Notably, manufacturers like Panasonic and Samsung are now providing FAST channels, effectively acting as providers of free TV content.
Content providers find discoverability and localization key factors in their operations. Broadcasters from France, the UK, and Germany have started their own streaming platforms, but they’re asking, “how can I stand out and differentiate myself, and how can I avoid competition?” Kerr points out. Those in charge at ITV, TF1, and other large broadcasters argue that the advertising-funded model is a good fit.
these platforms would focus on advertising for revenue generation.
According to Olivier Jollet, executive vp and international general manager at Pluto TV, a thriving advertising market alongside consumer demand for free content has significantly contributed to the surge of free streaming in Europe. He also emphasizes that local content partnerships with Viaplay, ZDF Studios, BBC Studios, Mediaset, Mediawan, Newen, and France Television have been instrumental in our growth within Europe, enabling us to create an optimal service for local viewers.
Although growth will occur in France, Spain, Italy, and other European nations as well, Kerr considers the U.K. and Germany as “the barometers and undoubtedly the leading adopters of FAST” across Europe. However, it can be challenging to obtain and compare data in the diverse and fragmented markets of Europe.
Kerr often examines multiple consumer surveys to understand patterns in user adoption rates. She points out that it’s logical for the growth and speed of expansion, starting from a small base, to be more significant in Europe compared to the United States.
As a gamer, it feels like we in Europe are playing catch-up when it comes to FAST (Free Ad-Supported Streaming Television). According to Guy Bisson, executive director of Ampere Analysis, about 37% of households in the U.S. are already tuned into this trend, whereas here in Europe, numbers range from 5% to a maximum of 14%, depending on the country. That’s quite a gap behind the U.S., making it seem like we have some serious ground to cover!
The reason why people in Europe view Free Ad-Supported Streaming Television (FAST) platforms less frequently compared to other regions is because the market for broadcaster streaming services has been more advanced and popular for a long time. This is according to Bisson’s explanation. In the U.K., for instance, the BBC iPlayer, which doesn’t show ads, paved the way for free streaming. Other broadcasters and commercial broadcasters then followed this trend. As a result, there seems to be a significant inverse relationship between the use of broadcast Video On Demand (BVOD) and Broadcast VOD platforms, and the use of FAST platforms in Europe.
The Ampere expert points out that when you view all free streaming services as equivalent, the perspective changes significantly. He suggests that this distinction might be misleading, stating, “In my opinion, it’s almost like a false definition.” He explains to THR, “For instance, if I watch ITVX for free, it’s ad-supported, streamed, and television. But would we call it a FAST channel? We don’t, but it is indeed free streaming television.” Bisson further contends that most viewers don’t differentiate between watching a themed channel on a FAST service in a linear fashion or its on-demand content.
His argument suggests that distinctions between names and explanations will eventually disappear, paving the way for an emphasis on unhindered broadcasting, which is already a trend in Europe, as much as or more than in the U.S., when considering Broadcaster Video On Demand (BVOD). Bisson emphasizes this point by saying that if we consider BVOD, Europe is already at parity or ahead of the U.S. in terms of free streaming.
Although Tubi has only recently entered the UK market, indicating a relatively low focus on Europe so far, there remains potential for Fast and AVOD services in this region. As Bisson points out, “the opportunity exists, albeit with increased competition stemming from established broadcasters.
As a fan, I’m excited to hear that Tubi might be expanding its AVOD service in the U.K. by potentially incorporating FAST channels over time. However, at launch, they are focusing on their key strengths – a vast on-demand library tailored for each user, all for free! David Salmon, executive vp & managing director of international at Tubi, shared this with THR. The growth of AVOD and FAST streaming categories in various global markets is noteworthy. It’s partly due to the growing frustration among SVOD subscribers faced with streamflation – the simultaneous price increases, reduced library sizes, and introduction of ad-tiers by multiple services. Many consumers view this as a problem.
According to Arthur D. Little’s predictions, FAST (Free Ad-Supported Streaming Television) revenue is expected to expand significantly, potentially making up almost 20% of the UK’s advertising-funded video market by the year 2027.
Danny Fisher, CEO of FilmRise, an independent streaming studio known for FAST services, states that while international revenue from FAST services is currently lower than in the U.S., he anticipates equality and even surpassing U.S. levels in the future. He adds that in certain Western European regions, monetization is already comparable or exceeds that of the U.S.
One primary goal driving the debut of FAST services in Europe is expanding our customer base by attracting new, as well as re-engaging with those who may have drifted away.
Freely, a free streaming platform, debuted this year with support from U.K. broadcasters BBC, ITV, Channel 4, and Paramount Global’s Channel 5. The service primarily caters to individuals residing in households without traditional TV connections, numbering approximately 4 million in the U.K., a demographic that is rapidly expanding. At its launch, the partners stated, “This new service represents the first collaborative effort among all four of Britain’s public service broadcasters to establish a streaming platform, marking the start of an endeavor aimed at ensuring the longevity of free television through cooperation.
Kieran Clifton, in his role as director of BBC distribution and business development, referred to the launch as a “significant milestone for U.K. television.” He emphasized that cooperation among U.K. public service broadcasters (PSBs) is crucial for ensuring all viewers are catered to during the shift towards streaming services, and offering live TV via broadband for free is an innovative step that will secure the future of public broadcasting.
Martin Goswami, ITV’s strategic partnerships and distribution director, states: “By combining live streamed channels with on-demand content in Freely, viewers can effortlessly access top British content. This includes live and recently aired programs as well as a vast selection of on-demand options.
Bisson highlights that roughly a fourth of FAST (Free Ad-Supported Streaming Television) channels mainly rely on a single intellectual property, often well-known franchises. In simpler terms, these channels are similar to go-to comfort foods in the realm of television. You could refer to them as the “Love Island Channel,” “Baywatch Channel,” or “Midsomer Murders Channel,” depending on the favorite series. Essentially, major content owners often concentrate on these single intellectual property channels for classic, widely popular series, where they possess a vast archive of multiple seasons, each containing 20 episodes, enabling them to run a channel solely from that extensive collection.
This year, I’ve been truly amazed by the surge of collaborative projects between FAST and its partners. It seems like everyone is joining forces these days, not a single soul going it alone according to Kerr’s observations.
Jollet emphasizes that in recent times, we’ve redefined ourselves globally, establishing fresh and cutting-edge alliances that are revolutionizing the free market business. For instance, our cooperation with Viaplay in the Nordics and M6 in France. The goal is to reinforce these partnerships to mold the future of local free streaming in each respective market. This strategy plays a crucial role in our ongoing growth.
Due to a notable rise in appeal amongst individuals aged 15 to 34, major AVOD and FAST streaming services are approaching or surpassing the 15% threshold of monthly users within the entire French population. Notably, Pluto TV has reached 26%, as reported by Paramount, based on data from Baromètre des Usages Audiovisuels.
Experts suggest that for FAST channels and AVOD libraries with more specific and less common content, their potential success might be higher. This is because catering to specific preferences within these platforms can be advantageous, as finding a sizeable niche where the production costs aren’t excessive makes it a feasible option. In contrast, traditional TV spaces would have made such ventures uneconomical due to the high costs associated with broadcast, transmission, or satellite transponder usage.
Tubi’s management claims they have effectively reached fan bases in the United States and are now applying the same strategy in the UK, referring to them as “fandoms.” As CEO Anjali Sud shares with The Hollywood Reporter, their marketing team sees fans as partners. She explains that through experience, data analysis, and consumer insights, Tubi has a feeling for potential fan communities that might be underrepresented. Therefore, they introduced over 100 top-tier Bollywood titles in the UK market, alongside a substantial Nollywood library, and an extensive art house collection.
In the United States, the most popular FAST (Free Ad-Supported Streaming Television) content category has surprisingly been news. However, this trend is largely influenced by regional variations in news channels, according to analyst Bisson. Following news, the categories rank in this order: general entertainment, movies, and sports. It’s worth noting that the popularity of sports isn’t due to live sports events, but rather programming related to sports. This presents a significant opportunity in Europe as well.
Pluto TV’s Jollet emphasizes their extensive variety of content, not just sports. He aims to create a soothing and welcoming atmosphere for users of all ages. Whether you’re a fan of blockbuster movies, niche interests, or sports with new channels like Darts, Real Madrid TV, and BVB, Pluto TV has it all. Additionally, they offer comedy, music, TV series, and more. As Jollet explains to THR, their goal is to provide entertainment for everyone across the globe – “our mission is to entertain the planet!
As Walt Disney and other major entertainment companies consider shrinking their traditional TV channels in Europe and elsewhere, Free Ad-Supported Streaming Television (FAST) channels could become a viable option. According to Bisson, these companies are in a delicate situation where they’re either phasing out or being pushed to phase out their linear channel operations while simultaneously boosting streaming services, without letting one overtake the other too rapidly. Bisson describes FAST as an alternative to the thematic cable channel business.
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2024-10-22 14:55