Why could broadcasters not adopt FAST 1.0?

FAST (Free Ad-Supported Streaming TV) channels face a few key challenges that can make it difficult for them to generate enough revenue to sustain producing new, original content:

1. Lower CPMs compared to other ad-supported platforms: Because FAST channels lack robust user data and targeting capabilities, the ad inventory tends to command lower CPMs (cost per thousand impressions) compared to more addressable ad platforms.1 This limits the potential ad revenue.
2. Audience skews older: The audiences for FAST channels tend to skew towards older demographics, which can be less desirable for certain advertisers looking to reach younger audiences.1 This demographic limitation caps the ad revenue potential.
3. Long streaming sessions reduce ad exposure: The linear, lean-back nature of FAST channels means viewers often have them on for extended periods as background entertainment. This results in lower ad attention and hitting frequency capping limits sooner for advertisers.1
4. Reliance on older library content: Most FAST channels rely heavily on older library/catalog content rather than investing in new, original programming due to the costs involved.5 This makes it harder to attract loyal, engaged audiences willing to watch ads.
5. Lack of robust data and analytics: Many FAST platforms provide limited viewership data and analytics to channel operators, making it difficult to optimize ad sales, programming, and the overall viewer experience.

So while FAST channels can generate some ad revenue from their existing content libraries, the combination of lower CPMs, limited data, and audience constraints makes it very challenging for FAST broadcasters to earn enough to sustainably invest in producing high-quality, original content at scale.

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