FAST Channels need leading playout services to engage audiences and advertisers but the channels are hesitant to reinvest in the transformation and outsourcing as a managed service.
FAST Channel inadequate playout is killing the industry
The television industry has undergone significant transformations in recent years, with the rise of streaming platforms and the introduction of FAST (Free Ad-Supported Television) channels. While these platforms offer a seemingly attractive proposition for audiences and advertisers, the reality is that FAST channels may not be representing TV in a way that benefits both parties. The industry is at a crossroads where channels are earning little revenue from FAST, leading to a cheapening of the playout process. This phenomenon is counterproductive and has prompted innovative solutions, such as Kapang’s initiative to introduce managed playout and sponsorship partnerships.
The Challenge of FAST Channels
FAST channels, designed to provide free content to viewers supported by advertising, have faced challenges in generating substantial revenues. Advertisers, in turn, may find it challenging to connect with their target audiences effectively. The limited revenue generated from ads on FAST channels has led to a compromise in the quality and engagement of the content presented. This compromise not only affects the viewing experience but also hampers the potential for revenue growth within the industry.
Playout Process and Revenue Generation
One of the issues plaguing the television industry is the devaluation of the playout process due to the inadequate revenue generated by FAST channels. As channels seek to cut costs to compensate for lower earnings, the overall quality and appeal of the content suffer. This counterproductive cycle impedes the growth of channels, limiting their ability to invest in more diverse and high-quality content.
Kapang’s Solution: Managed Playout and Sponsorship Funding Partnerships
Recognizing the challenges faced by channels in the current landscape, Kapang has taken a proactive approach to inject life back into the television industry. Kapang’s decision to offer managed playout for great content and leading brand owners signifies a commitment to revitalizing the industry. This managed playout service aims to enhance the quality of content while simultaneously addressing the financial constraints faced by channels so they can concentrate on content marketing, channel marketing, content production or content aquisition.
Under Kapang’s initiative, content and brand owners can enter into revenue partnerships, creating a win-win scenario for all stakeholders with all parties covering their specialism. By introducing sponsorships into the market, managed playout costs can be offset, ensuring sustainable revenues for channels from day one. This model not only provides financial relief for channels but also empowers them to invest in more content nd marketing (as a traditional TV channel would), fostering the growth of vibrant and engaged communities.
The Benefits of Managed Playout and Sponsorships:
- Quality Content: Managed playout allows channels to maintain and even enhance the quality of their content, leading to a more engaging viewer experience. This cost would usually be between $50k and $150k per annum.
- Financial Sustainability: Through revenue share partnerships and sponsorships, channels can achieve financial sustainability from day one, reducing the reliance on ad revenues with long cashflow terms from FAST channels.
- Community Growth: Sustainable revenues enable channels to invest in more content, fostering the growth of communities around specific genres, themes, or interests.
- Diversification of Offerings: With increased financial stability, channels can diversify their content offerings, attracting a broader audience and catering to different demographics.
FAST Channel Distribution
Kapang will proactively make available all channels to all third-party platforms as appropriate with the newer broadcast-grade channel offerings being in demand more than traditional playlist offerings and depending o the content and the channel branding.
View TV, the sister company of Kapang will backfill all unsold inventory on all UK and USA platforms with a 100% fill guarentee.
FAST Channel Futures Conclusion
The television industry is at a pivotal moment, and the challenges posed by the current FAST channel model can no longer be ignored. Kapang’s innovative approach to introduce managed playout and sponsorship partnerships offers a promising solution to revitalize the industry. By putting the oxygen back into the ecosystem, this initiative not only addresses the financial constraints faced by channels but also sets the stage for a new era of quality content, engaged communities, and sustained growth. As the industry adapts to these changes, it has the potential to thrive in a dynamic and competitive media landscape.
Channels should content Kapang via the View TV website stating their distribution and content catalogue size with the average time to broadcast being less than 14 days from receipt of creative assets and programme content.
This is not free-playout, although it would seem so on the balance sheet.