Optimising FAST Channel Distribution: Our Blueprint for Success

As more viewers shift away from traditional cable and satellite subscriptions in favour of streaming services, there's a growing nostalgia for the effortless, linear viewing that traditional TV offered. Enter FAST channels, which provide a rich selection of free, ad-supported TV channels streamed over the internet. They bring back the simplicity and familiarity of flipping through channels, without the commitment of a subscription. This model offers an ideal blend of traditional TV's ease and the modern streaming experience, catering to viewers looking for straightforward, accessible entertainment.

Although the initial push was into SVOD services, it is now clear that you need to have significant scale or a clear well defined niche to succeed.  Equally the push into SVOD has not necessarily been profitable.  Consequently rights holders are adopting an approach that maximises all revenues including through free ad funded models such as FAST.

The landscape for FAST channels is not only expanding but also becoming increasingly competitive. In markets like the U.S., platforms are now saturated with around 400 channels each, creating a crowded space where differentiation and visibility are key challenges. To navigate this competitive landscape effectively, forming strategic partnerships has emerged as a critical approach. Early entry into the market has proven advantageous, allowing for significant audience growth, fruitful partnerships, and effective monetisation strategies through sophisticated ad stacks. This approach underscores the importance of strategic collaboration and timing in securing a strong position within the FAST channel ecosystem.

The Rise of FAST Channels

FAST channels, first emerging in the early 2010s but picking up traction in the 2020s, marked a new era in television. Initially, they were a response to the growing demand for streaming content and the growth of SVOD alongside the decline of multi-channel pay and broadcast TV. The evolution of FAST channels can be traced back to the introduction of digital streaming platforms, where the idea of offering free, ad-supported content became viable and attractive.

As technology advanced and internet access became more widespread, these channels gained popularity, providing an affordable alternative to paid subscription services. While SVOD platforms continue to attract customers, there is a limit as to how many subscriptions a household will maintain, and the concept of accessing a variety of channels, without any cost in exchange for watching ads, resonated with viewers, especially in a climate where subscription fatigue began to set in due to the plethora of paid streaming options.

Market trends show a significant increase in the adoption of FAST channels, driven by consumer behaviour that leans towards convenient, on-demand viewing without the commitment of high subscription fees. FAST also enables viewers to easily binge content within the themes and genres they like, which is particularly attractive when they don’t want to lean into the viewing experience or spend too much time finding and selecting what to watch. The rise of smart TVs and streaming devices has also facilitated this growth as these companies have invested in FAST as a way of increasing their margins, making it easier for viewers to access FAST content directly on their televisions at home.

The popularity of FAST channels is further buoyed by a diverse range of content, appealing to different interests and demographics. From classic movies and TV shows to niche programming, these channels offer something for everyone, contributing to their widespread appeal. This trend indicates a shift in how people consume media, with FAST channels becoming a staple in the streaming landscape, offering a flexible and cost-effective solution for viewers and a dynamic platform for advertisers.

What is FAST channel distribution?

FAST channel distribution refers to the process of delivering Free Ad-Supported Streaming TV channels to viewers through the internet. This model allows broadcasters to stream content on digital platforms without charging viewers a subscription fee. Instead, revenue is generated through advertisements that are integrated into the content, much like traditional broadcast television.

In FAST channel distribution, content providers use streaming technology to make their channels available on various devices, mainly through smart TVs since 95% of FAST viewing is on big screens, but also smartphones and tablets. For content owners, there are three main distribution strategies:

• Set Up and Operate a FAST Channel: This approach involves working with a technology partner to manage the entire process, including accessing scheduling systems, playout, server-side ad insertion (SSAI), and channel delivery. It also requires negotiating with FAST platforms and handling monetization strategies. This method gives content owners full control over their channel's operation and revenue.
• Licence to an Owned and Operated Channel: Content owners can licence their content to a channel that is run by a FAST platform, such as Pluto TV or Samsung TV Plus. In this model, the platform manages the channel, but the content owner benefits from the platform's established audience and distribution network.
• Partner with a Specialist FAST Operator: Content owners can also choose to licence or partner with a specialist FAST operator, such as Little Dot Studios. These operators manage the channel's operation, including distribution and monetization, allowing content owners to leverage their expertise and established infrastructure.

In the realm of FAST channels, the approach to monetisation emphasises premium ad experiences, crucial for engaging a modern audience that values both privacy and content quality. These channels deliver full-screen, non-skippable mid-roll ads, free from overlays or distracting elements, ensuring that viewer engagement remains uninterrupted. In addressing the challenges of targeting in a cookie-less world, FAST channels excel by offering advertising opportunities that are contextually aligned with the content, thereby maintaining viewer trust while effectively reaching target demographics. This sophisticated mix of programmatic and direct advertising enables advertisers to connect with audiences through ads that are both relevant and respectful of viewer preferences. Depending on the commercial relationship with the FAST platform, then a FAST channel operator can either enter into a revenue share agreement (where the platform sells the advertising) or in inventory share agreement where the inventory is shared on the basis of an agreed percentage and both the channel operator and platform then monetise their inventory.

The operation and distribution of FAST channels involves managing the content library, scheduling programming, ensuring quality streaming, and handling the advertising aspects, including ad insertion and monetisation strategies. It's about creating a seamless viewing experience where the audience can easily access and enjoy a wide range of content, supported by ads that fund the channel's operation and content creation. 

The essence of distributing content via FAST channels goes beyond content management and advertising; it's about understanding their place within the broader streaming ecosystem. FAST channels are distinct entities housed within various platforms. These platforms, ranging from early app-based pioneers like Pluto and Tubi to device-led innovators such as Samsung TV Plus, Roku and Vizio aggregate FAST channels, and content that drives revenue. 

However, it's important to recognise that securing distribution deals or launching new channels on these platforms is not always straightforward. With the increasing number of FAST channels competing for space, gaining a foothold on major platforms can be challenging. Many distributors assume that obtaining distribution is a given, but this is often not the case. To maximise revenue potential, it's crucial for content distributors to aim for broad distribution across multiple large platforms rather than relying on a single platform. This strategy not only diversifies revenue streams but also enhances the overall visibility and reach of the content, ensuring that it can effectively engage a wide audience.

Benefits of FAST Channel Distribution

FAST channel distribution offers several advantages for content creators, broadcasters, and advertisers. Here’s how it positively impacts them:

• For Content Creators: FAST channels provide a platform to reach a wide audience without the barrier of subscription fees. Creators can showcase their work to more people, increasing their visibility and fan base. This exposure can lead to other revenue-generating opportunities, such as sponsorships or partnerships.
• For Broadcasters: By incorporating FAST channels into their distribution strategy, broadcasters can tap into the growing market of viewers who prefer streaming over traditional cable TV. This allows them to diversify their audience, reduce reliance on cable subscriptions, and generate revenue through ad sales on these platforms.
• For Advertisers: Due to data protection and limited first party data, FAST offers contextual ad opportunities in a premium digital environment. Advertisers can leverage full screen ads that are non-skippable in an uncluttered placement. Reach can be high if the channel is well distributed.The free nature of these channels often leads to higher viewership, increasing the potential impact and ROI of ad spending.

In terms of audience reach and revenue generation, FAST channels can significantly expand the audience base, attracting viewers from various demographics and interests. This broad reach is valuable for building brand awareness and loyalty. From a revenue perspective, while the content is free for viewers, the ad-supported model means that revenue is generated through commercials, sponsored content, and partnerships. 

Challenges of FAST Distribution

Distributing FAST channels comes with several challenges that broadcasters and content providers need to consider:

• Content Licensing and Acquisition: One of the main hurdles in FAST channel distribution is obtaining the rights to stream various content. Licensing agreements can be complex and costly, requiring negotiations with content owners to secure a diverse and appealing library.
• Content Volume: In order to launch a 24/7 channel, you need enough content and a supply or regular new content to keep the channel fresh and optimised for viewer preferences.
• Technical Integration: Ensuring smooth delivery of streaming content to various devices and platforms requires robust technical infrastructure. Providers must manage different formats and standards, ensuring compatibility and a seamless viewing experience across all user devices and work with multiple technical partners to deliver content.
• Monetisation and Ad Integration: Developing an effective ad revenue model is crucial for the sustainability of FAST channels. This involves integrating ads in a way that doesn't detract from the viewer experience while optimising ad placement and frequency for revenue generation.
• Audience Fragmentation: With the vast number of available channels, retaining viewer attention can be challenging. FAST providers need to understand and segment their audience effectively to deliver targeted content and maintain engagement.
• Content Discovery and Promotion: With so many options available, ensuring that viewers can discover and access the content easily is a significant challenge. Effective promotion requires working closely with platforms themselves to promote themes and stunts (including submission of the artwork) and developing an understanding of how (or even if) algorithms play a part in the channel selection on a platform. 
• Quality and Relevance of Content: Maintaining a consistent quality of content and ensuring it remains relevant and engaging for the audience is crucial. This requires ongoing content curation and possibly original content production to stand out in the crowded streaming market.

These challenges require careful strategy and execution to ensure that FAST channel distribution is successful, meeting the needs of viewers, advertisers, and content providers.

It’s also worth noting that while FAST channels offer a compelling revenue stream for platforms and provide content producers with an avenue for incremental revenue, to date FAST channels are typically reusing content that was commissioned via the broadcast TV model or SVOD model. While some new content creation for FAST is happening, it is likely that it is complementary to existing content distribution models. As FAST viewing and platforms grow (and the associated Ad spend) then FAST could fund content production in the future.. Unlike SVOD models, which often directly fund content creation, the revenue generated from FAST—and by extension, AVOD—tends to supplement rather than fully compensate for these expenses. This reality necessitates a more nuanced approach to content monetisation, where FAST becomes a component of a broader distribution strategy. Such a strategy might also leverage SVOD or traditional broadcast windows, allowing content creators to maximise the financial and audience reach of their productions across different viewing formats.

Little Dot Studios’ Approach to FAST Channels

Here at Little Dot Studios, our approach to FAST channels is multi-faceted and data-driven, enabling us to reach diverse audiences and maximise content value. We operate a network of FAST channels, including offerings like Real Crime, The Chat Show Channel, and History Hit, distributed on platforms such as Samsung TV Plus, Vizio, Roku, LG and our own platform, VEELY. This diversity in content and platform selection allows us to tap into various audience interests and viewing habits.

To optimise FAST channel distribution, we focus on data to identify crossover areas of interest, catering to niche audiences with long-form licensed titles and specialised content across multiple social video platforms. We’ve also expanded our AVOD network to over 80 channels on platforms such as YouTube and TikTok by launching new channels that target specific genres and viewer preferences, like Apex Predators, Criminal Underworld, and Big Ships!, leveraging detailed content strategies and licensing deals tailored to viewer engagement​​​​​​.

Best Practices for FAST Channel Distribution

Let’s take a look at how you can leverage our FAST experience at Little Dot to optimise FAST channel distribution. The key is ensuring that the content is engaging and effectively reaches the target audience. Here are some best practices to follow:

• Understand Your Audience: Start with detailed audience research to understand their preferences, behaviours, and viewing patterns. Tailor your content to meet their interests and needs, ensuring it resonates and maintains their engagement.
• Quality Content: Focus on licensing or aggregating high-quality, compelling content. The strength of your offerings, whether original programming, curated series, or licensed content, will drive viewer interest and retention.
• Optimise for Platforms: Each FAST platform may have its own specifications and audience characteristics. Customise your content and distribution strategy to align with the unique features of each platform, maximising visibility and impact.
• Regular Updates and Fresh Content: Keep your channels active with regular updates and fresh content to encourage viewers to return. A dynamic content library can sustain viewer interest and engagement over time.
• Leverage Data Analytics: Utilise analytics tools to monitor viewer behaviour, preferences, and engagement levels. Data-driven insights can guide content decisions, helping to refine and optimise your distribution strategy.
• Promotional Strategies: Promote your FAST channels and content across various platforms, including social media, to increase awareness and attract a broader audience. Strategic partnerships and cross-promotions can also extend your reach.
• Viewer Engagement: Foster a sense of community around your channels by engaging with viewers through comments, polls, and interactive content. Viewer engagement can build loyalty and encourage word-of-mouth promotion.
• Monetisation Strategies: Develop a clear monetisation strategy that balances ad revenue with viewer experience. Dynamic ad insertion and targeted advertising can increase revenue while minimising disruption for viewers.
• Adapt and Evolve: The digital streaming landscape is constantly changing. Stay adaptable, and be ready to evolve your strategies in response to new trends, technologies, and viewer preferences.

By following these best practices, you can optimise the distribution of your FAST channels, ensuring your content not only engages but also effectively reaches your target audience, ultimately driving success in the competitive streaming market.

Technology and Innovation in FAST Distribution

Technology plays a crucial role in enhancing the distribution of FAST (Free Ad-Supported Streaming TV) channels, with innovations and tools shaping the future of this landscape in significant ways:

Cloud-Based Channel Delivery Tools

The use of cloud-based platforms for broadcasting FAST channels is transforming the industry. Cloud technology enables scalable, flexible, and cost-effective distribution, allowing broadcasters to manage and deliver content globally without the need for traditional, hardware-based infrastructure.

Dynamic Ad Insertion (DAI)

Innovations in advertising technology, such as dynamic ad insertion–technically Server Side Ad Insertion (SSAI) in FAST–allow for more personalised and targeted ad experiences. DAI or SSAI can insert ads in real-time based on viewer data, improving ad relevance and viewer engagement, which in turn enhances monetisation potential for FAST channels.

Data Analytics and AI

Advanced analytics and artificial intelligence (AI) are being leveraged to better understand viewer preferences and behaviours. These insights can inform content curation, scheduling, and promotional strategies, ensuring that the right content reaches the right audience at the right time.

Enhanced Content Discovery

Innovations in search and recommendation algorithms are improving content discoverability on FAST platforms. By making it easier for viewers to find content that interests them, these platforms can increase viewer engagement and retention.

Integration with Social Media

As social media continues to be a powerful tool for content discovery and engagement, FAST channels are increasingly integrated with these platforms. This allows for direct streaming on social media, leveraging its broad reach and interactive capabilities to engage viewers and drive traffic to the channels.

High-Quality Streaming

Advances in video compression and streaming technology ensure that FAST channels can deliver high-quality video content even at lower bandwidths, improving the viewing experience for users across different devices and network conditions.

These technological advancements and innovations are not only improving the efficiency and effectiveness of FAST channel distribution but are also opening up new opportunities for engaging with audiences and monetising content. As technology continues to evolve, so too will the capabilities and reach of FAST channels, making them an increasingly important part of the digital media landscape.

Elevate Your Reach with Little Dot Studios’ FAST Channel Expertise

FAST channels represent a pivotal evolution in the streaming TV landscape, offering free, ad-supported content that caters to a wide range of viewer preferences. With the rise of cloud broadcasting, dynamic ad insertion, data analytics, and advanced streaming technologies, the distribution of FAST channels has become more sophisticated, allowing for targeted content delivery and enhanced viewer engagement.

As a leader in digital content creation and distribution, Little Dot has embraced these innovations, optimising FAST channel distribution to maximise audience reach and engagement. Our strategic use of data-driven storytelling and integration with social media is a testament to our commitment to high-quality streaming experiences.

For brands, sports rights holders, broadcasters, content producers and distributors looking to explore the potential of FAST channels, our team offers the expertise and innovative solutions needed to succeed in this rapidly evolving market. 

Ready to expand your audience and elevate your brand in the streaming TV world? Contact us today and harness the power of FAST channels to connect with viewers globally.