there are 3 SSP fees, all taking 20% and DSP’s take 25%With three SSPs each taking 20% and the DSP taking 25%, the legacy FAST revenue waterfall becomes significantly more expensive. The critical detail is whether each fee is calculated against the original advertiser spend or whether fees are deducted sequentially from the remaining balance.
The table below assumes the fees are each calculated against the original $25 CPM advertiser payment, as a simplified illustration.
FAST legacy revenue waterfall: $25 advertiser CPM
| Stage | Fee / share | Amount deducted | Remaining revenue |
|---|---|---|---|
| Advertiser gross payment | 100% | $0.00 | $25.00 |
| DSP fee | 25% | $6.25 | $18.75 |
| SSP 1 fee | 20% | $5.00 | $13.75 |
| SSP 2 fee | 20% | $5.00 | $8.75 |
| SSP 3 fee | 20% | $5.00 | $3.75 |
| Total intermediary fees | 85% | $21.25 | $3.75 |
| Channel owner’s gross revenue | 15% | $3.75 |
The $25 CPM outcome
$21.25
Intermediary fees (85%)
$3.75
Channel (15%)
The channel retains just 15 cents of every advertiser dollar under this additive-fee assumption.
Revenue impact at scale
| Monetised impressions | Advertiser spend | Intermediary fees | Channel gross revenue |
|---|---|---|---|
| 1 million | $25,000 | $21,250 | $3,750 |
| 10 million | $250,000 | $212,500 | $37,500 |
| 100 million | $2,500,000 | $2,125,000 | $375,000 |
| 1 billion | $25,000,000 | $21,250,000 | $3,750,000 |
These figures assume every impression clears at a $25 CPM, all three SSP fees and the DSP fee are charged against the original advertiser CPM, and no other deductions apply.
A crucial qualification: In real programmatic transactions, fees may be calculated sequentially, embedded in net bids, or charged on different bases. Three SSPs do not necessarily each take 20% of the original advertiser payment. If your figures describe the actual contractual structure, the precise fee bases should be confirmed before presenting the 85% deduction as an industry-wide fact.
The commercial argument for View TV Cloud is clear: reducing intermediary layers and making channel revenue more predictable can be more valuable than adding further distribution volume without improving the amount that reaches the content owner.
FAST Revenue Comparison: 10 Million Viewing Hours Per Month
The difference between legacy FAST and a more direct, viewing-hour-based monetisation model becomes substantial when applied to 10 million monthly viewing hours and 24 advertising impressions per hour.
Using the $25 advertiser CPM and the fee structure you specified, the legacy model loses 85% of the original advertiser spend to the DSP and three SSPs before the channel receives its share.
1. Monthly advertising economics
Monthly viewing hours
10,000,000
Ads per viewing hour
24
Monthly ad impressions
240 million
Advertiser CPM
$25
Monthly advertiser spend
$6 million
Calculation: 10 million viewing hours × 24 ads = 240 million ad impressions. At $25 per 1,000 impressions, the gross advertiser spend is $6 million per month.
2. Where the $6 million goes under legacy FAST
| Revenue stage | Fee rate | Monthly amount |
|---|---|---|
| Advertiser gross spend | 100% | $6,000,000 |
| DSP | 25% | −$1,500,000 |
| SSP 1 | 20% | −$1,200,000 |
| SSP 2 | 20% | −$1,200,000 |
| SSP 3 | 20% | −$1,200,000 |
| Total intermediary fees | 85% | −$5,100,000 |
| Channel owner’s gross revenue | 15% | $900,000 |
This assumes each fee is calculated against the original $6 million advertiser spend, with no other deductions.
+$100,000 per month
+$1.2 million per year
An 11.1% increase over the illustrative $900,000 legacy channel payout, assuming the $100 RPM guarantee applies to all 10 million viewing hours.
4. The bigger opportunity: reducing the legacy fee stack
The comparison above highlights the difference between the stated $100 RPM guarantee and the legacy payout under the assumptions given. It does not mean that the Next Generation model necessarily captures the full $6 million advertiser spend; its advertising revenue and contractual funding arrangements are separate questions.
The underlying legacy FAST economics are stark:
- Advertisers spend $6 million per month.
- Intermediaries take $5.1 million under the illustrative fee structure.
- The channel receives $900,000 before its own costs.
- A $100 RPM channel guarantee would yield $1 million for the same 10 million viewing hours.
The commercial message: FAST cannot be judged by advertiser CPM alone. What matters is the revenue that reaches the channel for every hour watched. A more predictable payout can help content owners plan investment, but the fee bases and guarantee terms must be transparent for the comparison to be commercially meaningful.