FAST Channel Business Model thoughts for Streaming TV broadcasters, FAST Channel Content Creators and FAST Channel Content Distributors are simply described as being 100% ad-funded but with amazing additional FAST Channel sponsorships and product placements. Check out https://viewtvx.com the FAST Channel Experts.
What is FASTC Channel Revenue Modelling?
Free ad-supported streaming television (FAST) is a business model that delivers free content to viewers, encompassing both linear channels and on-demand options. FAST channels are monetized through advertising, which can be traditional, interactive, or programmatic.
FAST channels offer numerous benefits to content owners, such as the option to monetize old and unused library content, reach new audiences, and create new content bundles.
How big is the FAST Channel Market?
FAST channels are growing rapidly in popularity and revenue, especially in the US, which accounts for almost 90% of the global FAST channel market value. According to Omdia, FAST channel revenue grew almost 20 times between 2019 and 2022, from $211 million to $4 billion. The market is projected to triple again by 2027, reaching $12 billion.
How big is the global market for FAST Channels?
However, the US is not the only market that offers opportunities for FAST channels. Omdia also identified the UK, Canada, Australia, Germany, Brazil, Italy, Mexico, France, Spain, and Sweden as the top ten non-US markets poised for growth. By 2027, the UK and Canada will have FAST markets worth over $500 million and $300 million, respectively. Germany, Brazil, and Mexico will also generate over $100 million each in FAST revenue by 2027.
To succeed in the FAST channel market, content owners need to track and optimize key performance indicators (KPIs) that measure their channel performance and impact. Some of the most important KPIs for FAST channels are:
- Total and average revenue per partner per channel tier: This KPI helps to identify the most profitable and productive partners and channel tiers, and to allocate resources and incentives accordingly.
- Revenue achievement against specific products: This KPI helps to monitor the revenue mix and profitability of different products and services offered through FAST channels, and to prioritize high-margin offerings.
- Revenue by geography: This KPI helps to evaluate the performance and potential of different regions and markets for FAST channels, and to tailor the content and marketing strategies accordingly.
- Number of deals registered: This KPI helps to reduce channel conflict and gain financial visibility in the channel, as well as to forecast revenue streams and pipeline health.
- Partner satisfaction: This KPI helps to measure the loyalty and engagement of channel partners, and to identify areas for improvement and retention. Partner satisfaction can be assessed through surveys, as well as through metrics such as portal login frequency, collateral downloads, demo participation, and certification attainment.
- Channel attrition rate: This KPI helps to monitor the churn and retention of channel partners, and to understand the reasons and costs of attrition.
- Customer acquisition cost: This KPI helps to measure the efficiency and effectiveness of the marketing and sales efforts in the channel, and to optimize the return on investment.
- Customer lifetime value: This KPI helps to estimate the long-term value and profitability of customers acquired through FAST channels, and to increase customer loyalty and retention.
- Customer satisfaction and retention: This KPI helps to measure the quality and satisfaction of the customer experience delivered through FAST channels, and to identify areas for improvement and retention. Customer satisfaction and retention can be assessed through surveys, as well as through metrics such as net promoter score, churn rate, and renewal rate.
By tracking and optimizing these KPIs, content owners can ensure that their FAST channels are performing at the highest level and achieving their strategic goals. FAST channels are a powerful and profitable way to deliver free content to viewers and create new revenue streams for content owners.
Revenue Streams missed in FAST Channels
FAST Channel Business Model – Streaming TV Broadcasters launching FAST Channels think that the advertising breaks and FAST Channel Ad Pods within Linear Channels and AVOD or advertising-based videos, but the truth is there are much more lucrative additional revenue opportunities.
FAST Channel Sponsorships
Television sponsorships by time of day are a type of TV sponsorship that allows brands to associate with a specific time slot on a channel or a network. This can help brands target a certain audience segment, match their product or service with the relevant viewing context, and dominate the share of voice at that time of the day.
For example, casinos can only advertise after 9 pm, so they may use sponsorship daypart 9 pm-2 am to reach potential customers who are interested in gambling. Similarly, breakfast cereal brands may sponsor morning shows or cartoons to appeal to families and children.JAMIE BRANSON – VIEW TVX
Television sponsorships by time of day can vary in length, frequency, and cost, depending on the channel, the genre, the audience size, and the demand. They can also be combined with other types of TV sponsorship, such as programme, genre, or channel sponsorship, to create a more integrated and impactful campaign. For example, a car brand may sponsor a motoring show, as well as the daypart that the show airs in, to reinforce its message and increase its exposure.
Television sponsorships by time of day can offer many benefits to brands, such as:
- Enhancing brand awareness and recall by being present and visible at a consistent time of the day
- Building brand affinity and loyalty by aligning with the mood, tone, and content of the time slot
- Driving brand differentiation and preference by standing out from the clutter and competition at that time of the day
- Generating brand engagement and response by reaching the audience when they are most likely to be interested and receptive to the brand’s offer
Television sponsorships by time of day are a powerful and flexible way for brands to connect with their target audience and achieve their marketing objectives. They can help brands create a strong and lasting impression on viewers, and leverage the popularity and quality of TV content.
FAST Channel Product Placement
Product placement revenue streams in TV are a form of advertising that involves integrating branded products or services into TV shows or movies. Product placement revenue streams in TV can be generated in different ways, such as:
- Charging a fee to the brand for featuring its product or service in the TV content, either physically or digitally. The fee can vary depending on the prominence, duration, and frequency of the placement, as well as the popularity and genre of the TV content.
- Sharing a percentage of the TV content’s revenue or profit with the brand, based on the performance and impact of the product placement. This can include revenue from subscriptions, advertising, merchandising, licensing, or syndication.
- Offering a cross-promotion deal to the brand, where the TV content and the product or service are mutually promoted on different platforms and channels, such as social media, websites, or events. This can help increase the exposure and awareness of both the TV content and the product or service.
Product placement revenue streams in FAST Channel TV Playout are growing rapidly, especially in the US, which accounts for almost 90% of the global product placement market value. According to a report by data analysis firm PQ Media, product placement revenue in TV shows and movies worldwide was worth $20.6 billion in 2019 and is projected to triple by 2027, reaching $60 billion.
One of the factors driving this growth is the rise of streaming services, which offer new opportunities and challenges for product placement. Streaming services can use advanced technology, such as virtual product placement, to digitally insert or change products or services in TV content, without affecting the original production.
Streaming services can also use product placement to diversify their revenue streams, as they face increasing competition and costs. Product placement revenue streams in TV are a powerful and profitable way for brands and content owners to reach and engage their target audience, and to leverage the popularity and quality of TV content.
FAST Channel Branded Content
Branded content for TV is a form of marketing that involves creating or sponsoring original and engaging content that aligns with the brand’s values and message. Branded content for TV can take various forms, such as documentaries, reality shows, web series, podcasts, and more. The goal of branded content for TV is to build awareness, trust, and loyalty for the brand by providing value and entertainment to the audience, rather than pushing a product or service.
Branded content for TV can also help the brand reach new and diverse audiences, especially younger generations who are more likely to consume content on social and streaming platforms.
Some examples of branded content for TV are Gay Chorus Deep South, a documentary sponsored by Airbnb that follows a gay men’s chorus on a tour across the southern US #LIPSTORIES, a web series produced by Sephora that showcases the stories of six women who use lipstick as a form of self-expression and The Dundies, a special episode of The Office that features Chili’s as the venue for the annual awards ceremony.
FAST Channel Business Model – Sponsored Content
YouTubers have been using Sponsored content for years as it provides upfront revenues without a share going to YouTube and provides credibility.
Sponsored content on YouTube is a revenue stream that involves creating or featuring content that is paid for or endorsed by a brand or a sponsor. Sponsored content on YouTube can take various forms, such as product reviews, tutorials, unboxings, challenges, giveaways, and more. The goal of sponsored content on YouTube is to promote the brand or the product to the audience while providing value and entertainment to the viewers.
Sponsored content on YouTube can be a lucrative source of income for creators, especially for those who have a large and loyal fan base. According to a report by Influencer Marketing Hub, the average cost per sponsored video on YouTube ranges from $315 to $3,157, depending on the number of subscribers and views. However, the actual price can vary depending on the niche, the quality, the duration, and the negotiation of the deal.
To get sponsored FAST Channel Content creators need to follow some steps, such as:
- Building a strong and consistent brand identity and voice
- Growing and engaging their audience and community
- Finding and reaching out to potential sponsors that match their niche and values
- Creating and pitching a proposal that showcases their value and benefits
- Negotiating and finalizing the terms and conditions of the sponsorship
- Delivering high-quality and authentic content that meets the sponsor’s expectations and guidelines
- Disclosing the sponsorship to the viewers and the platform, following the FTC rules and YouTube policies https://teachable.com/blog/youtube-sponsorships
Sponsored content on YouTube and FAST Channels is a powerful and profitable way for creators to monetize their content and collaborate with brands and sponsors.
Sponsored content on YouTube can also help the creators to diversify their revenue streams, increase their exposure and credibility, and provide more value and variety to their audience
FAST Channel Business Model – how do we spreadsheet it?
Jamie Branson, the FAST Channel Expert from View TVx has released a spreadsheet to give you an introduction on how you would model a FAST Channel business plan for anyone as a starting position, although he highlighted that the final model would depend on where the content and brand was originating to accurately display the FAST Channel revenue shares.
Click to download the FAST Channel Spreadsheet below:-