Over the past couple of years, FAST (Free Ad-Supported Streaming TV) services have seen remarkable growth, with two-thirds of US and Canadian viewers now using these services. Here are three reasons behind this surge and why you can expect this trend to continue.
FAST Services’ Remarkable Expansion
The growth of the FAST market in the US has been extraordinary. According to TiVo’s latest Video Trends Report, the average US and Canadian adult added 2.7 video services to their viewing portfolio over the past year, bringing the total to 11.9. FAST services were a significant driver of this increase, growing by 1.5 services to 3.9. Additionally, users of FAST services are watching more, with FASTs and Social Video increasing their share of total daily viewing time from 10.3% in Q4 2021 to 23.5% a year later.
To get a comprehensive understanding of the FAST market, consider watching “Getting to Grips with FAST: a Primer on Free Ad-Supported Streaming TV.” This class covers key terms, explains the rapid market growth, highlights the strengths of top FAST services, and discusses future trends. It uses the latest data to provide context, helping you grasp the dimensions of the FAST market, its evolution, and its future direction. So, grab your notebook and get ready to dive in!
Anthony Wood, CEO of Roku, often mentions that streaming doesn’t get full credit for its viewership. However, eMarketer reports that the US TV market was worth $87.2 billion in 2022, with 22% coming from connected TV and 78% from traditional TV.
Despite some complaints, FAST services are thriving in the US. Here are three reasons why now is the perfect time for FASTs to flourish:
1: SVOD Laid the Foundation
One major reason for the growth of FAST services is the foundation laid by SVOD (Subscription Video on Demand). Since Netflix launched its streaming service in 2007, the SVOD industry has become a global phenomenon. Over 80% of US homes have at least one of the top three SVOD services, and half of those use the services daily.
SVOD has introduced people to streaming platforms and made streaming an essential part of their TV consumption. For example, Roku has 70 million monthly active users, each averaging 3 hours and 50 minutes of streaming daily. The longer people stay on a streaming platform, the more likely they are to encounter a FAST service.
2: Zero Barrier to Entry
The two biggest barriers to trying an SVOD service are entering registration details and providing a credit card number. These issues are non-existent for FAST services. Once someone discovers a FAST service on a streaming platform, there’s no reason not to try it. The service is free, and many don’t require registration to start watching.
This open-access approach does have a downside: churn. Nearly a third of users only use a service for three months or less. However, FAST services are addressing this problem with their best tool: content.
3: FAST Services Pour on the Content
FAST services are in a content arms race to keep viewers coming back. Providers of linear channels are adding more and higher-quality channels. The Roku Channel recently added an exclusive channel from social media powerhouse Mythical Entertainment called Mythical 24/7. It also added 14 WB Discovery-powered channels and three from ViXs. Vizio’s WatchFree service has added originals like “3 Pointers” featuring Man vs. Food star Casey Webb and “@Home with Tori.”
Content providers like All3 Media use curation to turn old shows into viewing events to reengage past fans. Speaking at the Connected TV World Summit in London, Gary Woolf, EVP of Strategic Development at All3 Media, explained that the company programmed its Midsommer Murders FAST channel with the top 10 favorite episodes of series star John Nettles.
These three reasons explain why two-thirds of US and Canadian viewers use FAST services. Expect this number to grow along with the time spent on these services.
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