What do Chuck E. Cheese, Legos, and Hot Wheels have in common?
In addition to being children-focused brands, they also have their own free ad-supported streaming TV (FAST) channels. Chuck E. Cheese even built a digital out-of-home (DOOH) network as part of a bigger modernization effort.
It indicates that FAST has expanded rapidly in recent years. According to a Nielsen Gracenote research, the number of FAST channels has increased by 42% since mid-2023. It is due to not only advertisers participating, but also TV operators investing in their own platforms and sports making a greater impact in the field.
“FAST is not a passing fad,” explains Brandon Katz, Greenlight Analytics’ head of analytics and content development. “That has given the industry more confidence to invest in the field and expand its operations.”
Bottom line: FAST could become more important in the connected TV (CTV) ecosystem for both marketers and consumers in the future years.
“As new as many people believe the [FAST and advertising video-on-demand] industry is, it has matured very quickly,” says Vikrant Mathur, co-founder of CTV company Future Today.
“In terms of distribution, the sector is beginning to resemble that of traditional linear TV. Roku and Samsung are the next generation of TV service providers since they have direct consumer access.”
FAST could benefit from CTV growth.
Marketers are embracing CTV, despite the current global economic turmoil.
According to a Nielsen survey published this month, 56% of advertisers worldwide intend to raise their CTV spending this year, a modest increase from 53% in 2024. In North America, the increases are significantly larger: Sixty-six percent intend to boost their investments, up from 44% last year.
FAST could reap the benefits. Last year, Goldman Sachs predicted that the space will increase by 15% per year through 2027.
Consumers have taken note, too. According to Nielsen, The Roku Channel and Tubi had higher viewing than subscription video streaming services Peacock and Max in May. Pluto TV, Roku Channel, and Tubi had a higher combined audience than any other broadcast network this month.
While YouTube leads in overall viewership, FAST provides advertisers and consumers with a compelling alternative in a brand-safe, premium environment. According to a new eMarketer projection, the time U.S. viewers spend watching FAST platforms may increase more than that of YouTube this year, by roughly 11% versus 6.4%.
For Mathur, FAST combines the best of YouTube and premium membership channels.
He puts it this way: “All the bells and whistles from a privacy and brand-safety standpoint that something like Disney+ provides” need “charging an arm and a leg.”
FAST becomes family-friendly.
When comparing FAST and YouTube, Katz notes that it is “easier for brands to slot in programmatic ads into traditional content versus user-generated social content.”
However, Katz believes that the safety feature mentioned by Mathur might help position the site as a more family-friendly alternative to YouTube.
Last year, Mattel announced the launch of three channels dedicated to Barbie, Hot Wheels, and Mattel Jr. on Samsung’s FAST platform, Samsung TV Plus.
Chuck E. Cheese, looking to make a return after declaring bankruptcy in 2020, wanted in on the FAST action.
Chuck E. Cheese, in collaboration with Future Today, which also manages the Lego FAST channel, debuted the CEC Media Network last month throughout its sites.
The animatronics that have entertained (or horrified) young people for years have been replaced with a network of digital screens presenting family-friendly programming (and advertisements) that can also be found on Future Today’s HappyKids FAST channel.
According to David Di Lorenzo, SVP of kids and family at Future Today, children are intentional about what they watch, and in-location content may boost home viewership.
“Kids today aren’t in the mode of flipping on the TV and finding their favorite show [at a certain time] like when I grew up,” according to him. “For families, a single-branded channel may work better than a mixed-program channel.”
Sports surge on FAST platforms.
Brands aren’t the only ones fueling the growth in FAST channels.
According to Gracenote, the number of sports channels has increased by 105 percent since the middle of last year, with 118 distinct FAST channels featuring team sports events as of February.
Sports have broken through on FAST in other significant ways, most notably with a partnership between The Roku Channel and the MLB, as well as the Super Bowl airing on Tubi this year.
At the recent Cannes Lions festival, Tubi CEO Anjali Sud joked that her platform is “free Netflix” and expressed hope for additional sports chances in the near future.
“When you can offer live sporting events that are also cultural moments … for free — it works,” she told reporters. “It expands the pie.”
As sports programming expands on FAST platforms, it demonstrates how much they mirror old linear networks in the digital age, which could be advantageous.
“FAST platforms cater to young and diverse audiences, especially among price conscious cord-cutters and cord-nevers, and serve as the first logical TV destination for older cord-cutting audiences with disposable income looking for a similar experience to the traditional pay-TV bundle,” according to Katz.
“Name me a single brand that doesn’t want to tap into these demographics, and I’ll introduce them to the bankruptcy lawyer they’ll be needing soon.”
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