Press release
FAST (Free Ad-Supported TV) Channels Market Size Gains Momentum as Streaming Platforms Multiply
The FAST (free ad-supported tv) channels market was valued at $6.9 billion in 2022, and is estimated to reach $28 billion by 2032, growing at a CAGR of 15.4% from 2023 to 2032.FAST channels are ad-supported, free streaming television service that provides linear channels with pre-programmed ad breaks in between. These channels can be created by reorganising existing on-demand content catalogues as content playlists or programming grids. Many well-known brands have their own channels to monetize content through advertising and attract new consumers. Pluto TV, Xumo, Tubi, Peacock, The Roku Channel, IMDbTV, and Samsung TV+ are some of the most popular providers that provide FAST channels.
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FAST channels deliver regular linear TV channels to internet-connected devices such as CTV. FAST channels, unlike subscription models, are able to deliver these streaming services at no cost to the viewer by dynamically adding commercials into the would-be ad break. The advertisements tend to be skippable and non-skippable, with varying durations.
Furthermore, one of the primary benefits of FAST channels is their low cost. Unlike typical cable or satellite TV subscriptions, users can access a large amount of programming without having to pay a monthly charge. As a result, they are an appealing option for cord-cutters or budget-conscious folks seeking entertainment without the hefty fees associated with cable bundles.
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Consumer behavior has shifted significantly towards digital streaming and on-demand entertainment consumption. Traditional TV viewing is decreasing as people prefer the flexibility and convenience of streaming options. FAST channels meet this demand by providing free, ad-supported streaming choices, allowing viewers to enjoy a diverse range of material without the need for membership. Thus, shifting consumer behavior has fueled the growth of the free ad-supported TV channels market.
Furthermore, a variety of content has significantly contributed to the expansion of free ad-supported TV channels market. The wide variety of content available on FAST channels includes films, TV shows, documentaries, news, and live sporting events. Viewers can access content from both traditional broadcasters and digital-native creators, providing a broader selection compared to traditional TV channels. This variety attracts viewers with different interests, increasing engagement and driving growth in the FAST channels market size. In addition, advancements in technology have facilitated the growth of the FAST channels market.
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Region wise, North America dominated the market in 2022 and is considered to be the fastest-growing region during the forecast period. This was attributed to the popularity of streaming services, demand for free content, increase in connected TV devices, shift in advertising budgets towards digital platforms. Furthermore, the proliferation of connected TV devices, such as smart TVs, streaming media players (for instance, Roku, Amazon Fire TV), and gaming consoles, has contributed to the growth of the FAST channels market.
The COVID-19 pandemic had a significant impact on the FAST channels industry. As people around the world were forced to stay at home due to lockdowns and social distancing measures, there was a surge in TV viewership. With more time spent indoors, many turned to streaming services and FAST channels for entertainment. This led to increased advertising revenue for these platforms as advertisers sought to reach the growing audience. In addition, the pandemic accelerated the trend of cord-cutting, with more people opting for cheaper streaming alternatives rather than traditional cable TV. This shift in consumer behavior further boosted the popularity and demand for FAST channels. Thus, COVID-19 acted as a catalyst for the growth of the FAST channels market as it provided a captive audience and increased ad revenues.
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The key players operating in the FAST channels market analysis include Roku, Inc., Pluto TV, Tubi TV, Crackle, Xumo, Inc., Sling TV, Vudu, Plex, Peacock TV LLC, and Amazon.com, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the free ad-supported TV channels industry.
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