How do FAST Channels make money?
A FAST Channel or FAST solution is constructed of four key solution parts :-
- CONTENT (Video) – TV Programmes, Films or Live Events
- AUDIENCE (Viewers) – The Viewers watching your content, if they do not watch then it is pointless
- REVENUE (Video Ads) – Putting video ads in the stream at key points makes money so audiences can watch for free
- TECHNOLOGY (The cloud TV Tech) The Technology that allows you to build and deliver your channels?
FAST Channel Format – Streaming TV is the same as Television
Each FAST Channel should follow traditional TV formats, one because it has worked for decades, two because audiences are comfortable if it looks the same and has not changed but more importantly the ad buyers will buy easier if it is the same. FAST Channels do not have the energy or value to change audiences and advertisers’ habits just yet, and it probably does not need to anyway.
FAST on FAST Channels is a delivery method of delivering On-demand or Live Streaming Linear TV to audiences via public internet networks over 4G, 5G, Broadband and WIFI for free by inserting a schedule of addressably targeted ads at strategic points throughout each hour of content.
On VOD you would do pre-roll, then an ad break at the right points (Scene change or chapter) every 12 minutes of around 2-3 minutes of adverts.
On linear you would provide 4-5 advert breaks an hour delivering between 10 minutes and 15 minutes of ads per hour depending on the country of origin.
How much does advertising make on FAST Channel Ads?
As a rule of thumb, the average revenue earned per hour is $0.25/hour gross revenue, although this can be as high as a$1.00 per hour for premium content such as live sports.
$0.25/hour is based on $18cpm gross revenue per ad x 24 ads/hour, $0.43/hour with 60% fill and success rate.
If you have 1,000 people watching for one hour per day this would provide:
10,000 people x 1hour x 365 days/year = 3.65m hours watched per year
3.65m hours watched per year x $0.25/hour = $912,500/gross revenue/year
Please note that platforms and ad providers will take a percentage of this revenue for providing the audiences, effort and technology services, this can be between 20% and 50% depending on the deal and grade of the content.
How much do I need to make to run a FAST Channel?
A FAST Channel will have costs of Cloud TV Playout, FAST Channel CDN, FAST Channel SSAI and Video Ad Server Technology, FAST Channel Staff, digital marketing, FAST Channel brand awareness and the actual FAST Channel content itself.
We would suggest that $50,000 per month would be an entry-level channel and just like TV a premium channel would range from $250k/month to $2m/month all having to break even on the number of hours watched.
The NET revenue for most channel sites at $0.15/hour watched, so an entry-level channel would have to be watched four million hours per annum to break even, only 350,000 hours per month, the equivalent to 10,000 people watching 1 hour per day every day.
What is the key to a successful FAST Channel?
The key to a successful FAST Channel is very simple and replicates any TV Channel created during the last fifty years:
- Have a great FAST Channel brand – A branded channel is a jump start that people will recognise or market to make the brand known,
- Great FAST Channel Content – if the content is not something that people want to watch, then they will not watch it and FAST is all about people watching stuff.
- Marketing is key to FAST Channels – If people cannot find your FAST Channel how will they be able to watch it, the internet does not provide instant audiences, you have to shout out to people and tell them you are there. Social media driving and traditional brand marketing are all important just like any other business.
- TV Channel Format is key in FAST Channels – When you produce a FAST Channel make sure you make it look like a cable channel. Programmes should start at the top and bottom of the clock hour, the EPG should have full details of the programme and the advert breaks should be inserted at appropriate times, not mid-sentence.
- FAST Channel Content Curation is very important – FAST Channels need to understand that people do not want to watch Horror movies at 10 am or cartoons at 11 pm, curation of the channel will keep your audiences coming back all day if you have curated your FAST Channel Content Schedule correctly.
How do I find out more about FAST Channel Business Models?
If you would like to understand the FAST Channel business model more please contact View TV at https://viewtvx.com