FAST WARS – It is a content play, not a technology play

FAST Wars encapsulate the competitive rush in the Free Ad-Supported Streaming TV industry to deploy broadcast services over IP-connected devices.

Content Owners and Broadcasters have identified FAST as an economical strategy to enhance and shift their revenue streams from dwindling traditional mediums to the burgeoning realm of connected TVs and FAST OTT platforms, accessible via Smart TV applications and across various devices like mobiles, computers, and tablets.

However, a critical oversight by many in this space is the neglect of the two principal stakeholders: the audience and the advertisers. The audience engages with the content, driving advertising interest, while advertisers purchase this interest to fund content production. Unfortunately, few technology providers have fully considered the perspectives of these essential parties, leading to a diminished value proposition.

Within the FAST ecosystem—comprising Content, Audience, Revenue, and Technology—the focus has often been disproportionately on the technological aspect, despite it being a minor player in the overall success of FAST, beyond content curation and presentation. It also represents only a small portion of a broadcaster’s capital and operational expenditures.

The current revenue-sharing model, which leaves FAST Channel owners with less than 20% of gross revenues, is not viable for content owners and creators who face significant expenses and overheads. This model’s unsustainability necessitates a shift towards a more equitable revenue-sharing and cost structure that can support the higher content costs associated with high-value FAST innovators who are not actively commissioning or producing new content.

Looking ahead, the evolution of FAST must attract established content owners and broadcasters to transition their operations to FAST or Subscription Broadcast services sustainably. This change should be underpinned by a fair revenue-sharing and cost framework that can support the more substantial content expenses, thereby ensuring the viability of archive channel content.

The trajectory for FAST channels, their viewers, and advertisers lies in ‘FAST First’ Content and events capable of generating revenue comparable to that of traditional broadcasters, bolstered by precise audience metrics and equitable platform market share.

The future of FAST is set to be technology-neutral, reminiscent of the DotCom era, with industry professionals lending credibility through mature, sustainable business models.

Kapang has envisioned this future, crafting a business model that equips content creators with the means to produce ‘FAST First’ content. This model aims to draw vast audiences to embrace FAST and Connected TV as their primary entertainment source, replacing traditional television.

Furthermore, Kapang has strategized the transition for current TV Broadcasters, including local and hyper-local stations, to integrate this service seamlessly, offering comparable revenue streams and a gradual, sustainable transformation process.

With an equitable 80/20 business model, Kapang is at the forefront of FAST and Streaming Media innovation, providing high-quality contributions to existing broadcasters. This approach ensures a resilient future for broadcasting with minimal disruption, facilitated by the BroadcastCDN technology stack.