Streaming subscriber race: FAST wins eyes and dollars

Think for a moment: How many streaming services are you subscribed to? Netflix, Hulu, HBO Max, Amazon Prime, Disney+, Paramount+, Apple TV… the list seems to go on with more streaming services every year.

Initially, opting for streaming was a way for consumers to save money, an alternative to cable. With so many services available, each with its own unmissable content, consumers are subscribed to a plethora of services, with a plethora of viewing choices.

This has led to “subscription fatigue”, the feeling of being overwhelmed by the amount of content available. In fact, the competition for attention is at an all-time high. According to Deloitte’s annual digital media trends questionnaireNearly 47% of US consumers are frustrated with the growing number of subscriptions needed to watch what they want.

In addition, the US is currently facing a potentially looming recession. With this comes the opportunity to quickly change consumer and purchasing behavior around subscriptions. Many consumers may soon have even more choices to make about which subscriptions they want to keep and which they want to cancel, leading to further subscription fatigue.

So how can streaming platforms address this sense of overwhelm and help consumers manage their wallets during an economic downturn, while still discovering the content they want to watch? It’s all about delivering the right content, at the right time, in the right channel to the right consumer – and the key is free ad-supported streaming TV (FAST).

Today’s audiences crave a seamless “lean back” experience

As streaming and connected TV have grown in popularity, so has subscription fatigue. Ironically, the more choices we have, the harder it can be to find something we really want to see.

The list of over-the-top (OTT) video options continues to grow as consumers grow tired of the rising cost of streaming, while also facing increasing barriers to content discovery. As they are forced to strain their wallets, consumers are demanding more appropriate services that suit their preferences.

More and more audiences crave a comfortable ‘sit back’ experience – an easier, more passive way to access content, without the stress of a plethora of choices. Here FAST can meet this need. As free ad-supported content becomes more engaging and innovative, these immersive “lean back” experiences are sure to follow.

FAST vs. video on demand

We all know the big players in the subscription video-on-demand market — dominant forces like Netflix and Amazon. But while these companies may be the established goliaths of the streaming world, new contenders are emerging in the form of free ad-supported models. And in many cases, they are at the forefront of the race for consumer attention and loyalty, as well as advertising revenue.

Netflix recognizes this and has recently announced a new cheaper ad-supported subscription offer. This indicates that Netflix is ​​learning that to win the streaming wars, they must balance the high cost of content and subscriber growth by opening new revenue lines.

While most on-demand platforms are ad-free—a benefit many viewers appreciate—they often come with a higher price tag. On the other hand, free ad-supported TV can be an attractive prospect for customers who are tired of paying for a plethora of streaming services. In addition, FAST platforms can serve highly targeted ads to viewers and present them with relevant, personalized ad content that can be more appealing — or at least non-abrasive — for them to watch.

In addition, with on-demand streaming services, there is the problem of content discovery. When consumers enter a platform like Netflix, they are the first to encounter a screen full of content options. It can be overwhelming to find the right series or movie to watch, especially when consumers have multiple subscriptions to choose from. With so many services and great content, people are starting to filter what services they want versus need, and the added pressure from the economy makes FAST a clear winner.

FAST channels offer viewers a more linear, passive experience. Consumers can just turn on a channel they like, sit back and enjoy, no choices needed. In some ways, it’s more like the traditional cable viewing experience of the past. And with a wide variety of genres available, including news, sports, documentaries, movies, food and music, designed specifically around consumers’ interests and personal tastes, consumers can now access the content they want in an easier, more direct way. they want to. .

Why FAST is the future for content producers and advertisers

Not only is FAST a viable consumer alternative to on-demand streaming platforms, consumers are clearly shifting their time and attention to this model. And, good news, advertisers too. According to an new report From PWC, the shift to hybrid monetization methods, connected TV and FAST channels will strengthen the role of video as the primary driver of revenue between 2021 and 2026.

In reality, 200 million global viewers and 47% of US consumers look to ad-supported platforms like Samsung TV Plus, The Roku Channel, Pluto, STIRR, and Amazon IMDb TV — and as new FAST services launch, this trend will only accelerate. Meanwhile, marketers are betting a lot on FAST, because they are estimated to spend more $25 billion on ad-supported video by 2025.

For content owners, this represents a golden opportunity to monetize premium content through ad-only streaming models. And advertisers would do well to follow suit and shift a greater portion of their spending toward FAST models to deploy targeted ad campaigns based on consumer data and viewing preferences. Now is the time for advertisers to go digital to take advantage of the changing advertising landscape and appeal to today’s modern consumers.

Ultimately, FAST TV is here to stay, offering consumers both the price and the viewing experience they crave. As consumers make strategic decisions about what to spend their entertainment budget on today, companies adopting these models are poised to win over consumers.

In addition, linear OTT channels, available through ad-supported platforms, make it easier for viewers to access content and minimize the churn caused by a plethora of choices. Not only does this make it much easier to be discovered for the content owner – and create more effective marketing opportunities for the advertiser – it also drives much greater engagement and loyalty from consumers.

Srini KA is co-founder of amagic.