OTT and the realities of FAST channels
The recent surge in FAST channels is having a significant impact on the OTT industry. Few predicted their sudden rise over the past 18 months, which has left many wondering what they’ve missed. In this blog, we explore what FAST channels are, why they are growing in popularity, and how they affect the OTT industry.
What are FAST Channels?
FAST (Free Ad-supported Streaming TV) channels are a type of OTT content that allows users to stream high-quality linear content with no additional fees or subscriptions required. Simply put, FAST channels are an extended version of traditional TV streamed over internet-connected devices.
FAST vs AVOD
FAST channels operate in much the same way as traditional linear TV, with a programme schedule and ad breaks. AVOD (Advertising Video-On-Demand), on the other hand, is a streaming service business model that enables viewers to watch Video-On-Demand content in exchange for watching ads.
The positives and pitfalls for viewers
FAST channels replicate the traditional ‘free’ TV experience as they are supported by ads, which has led to significant gains in viewership over the last few months for these online-only services. While seemingly advantageous to viewers on the surface, there are drawbacks to consider, including:
- Due to their relatively new nature, some channels may have yet to be adequately tested or optimised for all types of devices, leading to viewers having potential issues with compatibility or performance.
- FAST channels may not be able to offer the same level of content selection as larger subscription services either. This could limit their appeal to viewers who are looking for a specific film, TV show, or other types of program.
- FAST channels can be resource-intensive, which may result in users experiencing buffering or other issues during peak viewing times.
What impact are FAST channels having on the OTT industry?
If you have attended a conference within the broadcast sector in the last two years, you will have heard all about FAST channels. The acronym has created a brand in itself and as ever, companies are jumping on the bandwagon for this ‘new’ business vertical. However, essentially this is merely the move from traditional linear TV via cable and satellite channels, to the future of OTT delivery. The good news is that it is now much easier to ‘spin up’ 24/7/365 linear channels through strong technology provisions, the bad news is that the fight for viewership remains exceptionally competitive, so as before the 80/20 rule will apply. If you are not in the top channels on Samsung, LG, or other, then the viewers will not find you, not watch your content and therefore your share of the advertising revenues will be significantly lower than those at the top.
However, the news isn’t all bad, all the data we see here at Magine Pro speaks to ‘lazy’ weekday viewing, that is to say after a hard day at work the average consumer will switch on linear channels and settle for something, rather than spending the time and effort to choose something from a vast array of VOD catalogues. (This behaviour switches entirely from Friday night to Sunday night). So if you have your own OTT platform, have plenty of content, and work with a good advertising platform, then it is definitely worth providing channels to enable an easier and quicker choice for your viewers.
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Want to discuss the pros and cons of FAST channels further? Get in touch with the Magine Pro team.
You can also head over to our homepage to find out more about our flexible OTT platform. Discover how we enable our partners to monetize their Live Events, Linear Channels, and VOD content with a customisable video streaming service.
Luke Boyle on OTT & the future of sports broadcasting
Magine Pro’s CCO, Luke Boyle shares his thoughts on the current climate and what he thinks the future has in store for sports OTT.
Magine Pro’s CCO, Luke Boyle shares his thoughts on the current climate and what he thinks the future has in store for sports OTT. Usually, at this time of year, we would be heading back from several international trips to glorious places such as Monaco and Madrid, having attended some of the biggest sports broadcast and OTT conventions in the region. This has not happened. It isn’t that type of year…
Sport stopped. It stopped. This has never happened in my lifetime. But then it came back. The players and athletes, when allowed out of their bubbles, continue to enthral and entertain us. Though this is in very few cases (well done New Zealand!) in front of full or even partial crowds. So how do we, the fans, get to view the trials and tribulations of our favourite icons and teams? The obvious answer is of course via broadcasts, live and on-demand, and more commonly via a subscription or transactional OTT service (I say subscription, as unfortunately, though it is coming, I am yet to see a profitable pure sports AVOD service).
One of the big discussion points of late has been how COVID has disrupted businesses. For the digital media industry, the reality is that it has expedited development. Within the space of six months, we’ve seen perhaps three years of user behaviour and technological innovation. At Magine Pro we’re now seeing a 40% average consumption increase across all our clients over this time, which was forecast over a much longer period.
Viewing habits have also been evolving. The younger generation doesn’t know what an EPG is. Outside of live events (which maintain their value) sport is no longer about sitting down on a Wednesday evening or Saturday afternoon and seeing what is on the sports channels. It is now about cleverly curated content, be it highlights, lifestyle content, archive footage, best-ofs etc allowing the fan to fully immerse and lose themselves building extreme fan affinity to players and teams alike. None so passionate as sports fans – let’s give them what they want!
One other thing that many people ask me, is sports OTT going to aggregate again? The simple answer is, yes. But it won’t be on a domestic basis. What I think will emerge, as DAZN, Eleven, Amazon, Facebook and of course Google is showing, is the international aggregation of sports content. Viewers anywhere in the world will be able to subscribe or purchase on-demand any sports event, series, league of their choosing. But we are a long way from there yet, although niche sports OTT services continue to thrive.
On a personal note, at Magine Pro we were delighted to announce our new agreement with Endorphin and the Croatian Football Federation a few months ago. Magine Pro will be providing the exclusive end-to-end OTT solution, enabling fans both domestically and internationally to view one of the fastest-growing leagues on the planet, live and on-demand. Read more about the agreement here.
You can also check out some insightful thoughts from our VP of Engineering, Robert Olsson on the technical challenges of surfacing live sports content, and how we have solved them here. Our Director of Marketing also highlights the key features of a successful sports OTT service here.
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To find out more about our OTT platform and how we enable our partners to deliver live sporting events, linear and VOD content to audiences around the world head here. On our experience page, you can find out more about our partners and the OTT services they operate.
Get in touch with us if you would like to discuss how we can help you launch a successful sports OTT service or to demo our services.
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