Sony Pixel Power calrec Sony

Cracking the Code - Navigating the Challenges of Monetizi...

15/08/2024

By Nate Frink, EVP Global Operations, Vubiquity Free Ad-Supported Streaming Television (FAST) channels have emerged as an attractive option for content monetization. FAST channels offer a unique opportunity to monetize content that might not perform well in a Video-on-Demand (VOD) setting. Think of the back catalog of classic game shows. Driven by nostalgia, people will often watch them, but will they search for them? And will major streaming services even promote them?

According to S&P Global Market Intelligence, total FAST ad revenues in the U.S. approached $4 billion in 2022 and are expected to more than double to just under $9 billion by 2026. The promise of substantial advertising revenues is also a significant driver for the growth of FAST in Europe . According to Omdia, by 2027, the revenue opportunity outside of the US is expected to be approximately $1.6 billion. This growth will be driven by markets like the UK and Germany, which show strong expansion and increasing FAST adoption.

When done right, FAST can generate real money, but channels face numerous challenges on the road to success, and many struggle to simply survive.

The Struggle is Real: The Reality of Monetization Take the example of the Tastemade TV. At the initial launch, the channel struggled due to a lack of differentiation from other food and travel content. Despite the engaging content, the channel couldn t attract a sustainable viewership. However, by pivoting their strategy and partnering with multiple streaming platforms to increase its reach, Tastemade was able to attract a larger audience to become a prominent FAST player.

Despite their increasing popularity, many FAST channels still struggle to achieve profitability. There are three primary reasons for this.

The first issue could be described as the field of dreams mentality "If you build it, they will come. Many FAST channel operators believe that merely distributing quality content will attract advertisers. This is a critical misconception. Without a robust strategy to attract advertisers, simply having good content is not enough.

Consider the CPM (cost per mille), which calculates the total ad spend per 1,000 impressions. Many FAST channels grapple with ad marketplaces that don't match their content, leading to low CPM and lower revenue. Even worse, many channels without active monitoring face ad insertion rates as low as 5% or less, leaving unfilled revenue opportunities running as generic slates (we'll be right back). This low fill rate and CPM mean that operating costs frequently exceed revenue, leaving these channels financially strained.

The second major hurdle is the technological complexity in launching and maintaining FAST channels. Unlike broadcast media, which benefits from decades of streamlined vendor support, FAST technology is still in its adolescence. A FAST channel requires integrating a multitude of technologies, making it a complex and often fragmented process. Efficiently delivering high-quality video via the Internet demands advanced content delivery networks (CDNs) capable of handling fluctuating bandwidth requirements. Also, there's the need for sophisticated ad-decision servers and real-time bidding systems to dynamically insert ads into the streaming content without disrupting the viewer's experience.

In addition, playback technologies must ensure that content is accessible across a variety of devices and platforms, from smart TVs to mobile phones. Devices often have different specifications, requiring adaptive bitrate streaming and robust transcoding solutions. Plus, analytics and reporting tools to monitor performance, viewer engagement, and ad effectiveness necessitate the integration of multiple data sources and backend systems.

The fragmented nature of these technologies means that any disruption or incompatibility can significantly hinder the performance and reliability of the channel. Thus, it is not just a matter of assembling the right pieces. It's also ensuring those pieces work seamlessly together, making it a complex and ongoing challenge for organizations venturing into the FAST space.

The third consideration is the myriad of government regulations that vary across geographies. For example, European FAST channels face the stringent requirements of the General Data Protection Regulation (GDPR). Touted as the toughest privacy and security law globally, GDPR mandates that consumers must provide active consent before ads can be served to them. This regulatory hurdle significantly impacts the ad revenue potential for FAST channels operating in Europe, adding another layer of complexity to their monetization strategies.

FAST Forward to Profit So, how do you overcome these three common, yet significant, challenges? First, by partnering with server-side ad platforms and matching ad marketplaces to your content types, you can improve ad placement and monitoring. Continuously monitoring channels will ensure they hit the desired CPM and fill rates. Actively adjusting ad-run times, breaks, and targeting can provide better monetization outcomes. A well-matched ad marketplace matches ads, consumers & content.

Attracting advertisers in the FAST ecosystem demands more than just content creation; it requires data-driven strategies, targeted marketing efforts, and strong relationships with advertisers. Channels must demonstrate value to advertisers by leveraging viewer data and analytics to offer targeted ad placements.

The FAST ecosystem employs two primary monetization models:

Revenue-Share Model: The platform sells the ad inventory and shares the revenue with the channel. This is the most prevalent model.

Inventory-Share Model: Both the platform and the channel sell portions of the ad inventory and retain their respective revenues. This model can be advantageous for channels that want to ha
LINK: https://kitplus.com/news/cracking-the-code-navigating-the-challenges-o...
See more stories from tvbay

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

08/05/2026

Miri V410 Encoder-Decoder Wins 2026 NAB Show Product of t...

For the second straight year, Miri Technologies Inc. has been honored with a pair of coveted awards at the broadcast, media and entertainment industry's pre...

08/05/2026

Nine Alumni Nominated for Tony Awards

Nine Alumni Nominated for Tony Awards More than 20 alumni contributed to this year's Tony-nominated productions. May 7, 2026 By Tori Donahue Boston Co...

08/05/2026

Report: Rise of Video Podcasts Prompts Hybrid Approach

Share Copy link Facebook X Linkedin Bluesky Email...

08/05/2026

U.K. Military Broadcaster Taps Synamedia for Digital Platform

Share Copy link Facebook X Linkedin Bluesky Email...

08/05/2026

Gayle Benson To Receive NAB Leadership Foundation Leadership Award

Share Copy link Facebook X Linkedin Bluesky Email...

08/05/2026

Dems Blast FCC Disney Probe As 'Egregious Abuse of Power'

Share Copy link Facebook X Linkedin Bluesky Email...

08/05/2026

Liberty University on why broadcast technology isn't just a technical investment, it's a human one

Liberty University on why broadcast technology isn't just a technical invest...

08/05/2026

COW Jobs: UGC, On-Camera Video Content

COW Jobs: UGC, On-Camera Video Content Brie Clayton May 7, 2026 0 Comments UGC, On-Camera Video Content April 17, 2026Documentary Editor - US,......

07/05/2026

Sudan Digital Investigation Hub launches to support journalists navigating disinformation in conflict

Journalists reporting on Sudan are working in one of the most complex and fast-m...

07/05/2026

Victory+ CEO Neil Gruninger on the Impact of the Dallas Cowboys Deal, Creator-Led Content, and Free In-Market Access for Fans

Multi-year partnership positions Victory+ as a free home for Dallas Cowboys orig...

07/05/2026

SVG Students To Watch: Ella Peterson, University of Illinois

From sideline reporting to directing and producing, the talented sophomore is building a well-rounded foundation for a career in live sports production In the ...

07/05/2026

NAB 2026: Cobalt Digital Wins Two Future Best of Show Awards

Cobalt Digital has received two Future Best of Show awards at NAB Show 2026. The COBALT blueCORE platform was recognized by TV Tech, and the COBALT PACIFIC ULL-...

07/05/2026

Scripps National Spelling Bee Revamps Broadcast; Mina Kimes to Host, Embassy Rows Michael Davies to Produce

ESPN analyst Mina Kimes will host the televised semifinals and finals of the 202...

07/05/2026

MUBI Selects Bitmovin as Cloud VOD Encoding Partner

Bitmovin has announced that MUBI, the global film streaming platform, has selected Bitmovin as its cloud VOD encoding partner. Bitmovin's encoding infrastru...

07/05/2026

NBCUniversal Telemundo Enterprises and U.S. Soccer Extend Spanish-Language Media Rights Through 2030

NBCUniversal Telemundo Enterprises and the U.S. Soccer Federation have announced...

07/05/2026

Angel City Football Club and Victory+ Announce Regional Broadcast Partnership

Angel City Football Club (ACFC) and Victory have announced a regional broadcast partnership bringing live match coverage to fans across the greater Los Angeles...

07/05/2026

Spiideo Launches AI Highlights for Automated Highlight and Clip Creation

Spiideo has announced the launch of AI Highlights inside Spiideo Play, its automated sports production platform. AI Highlights combines video, event data, audio...

07/05/2026

Leostream Announces Unified HPC Remote Access Ecosystem for Post-Production and Enterprise Workflows

Leostream Corporation has announced a unified remote access ecosystem for high-p...

07/05/2026

Victory+ Adds Atlanta Dream Local Broadcasts to Free Streaming Platform

The Atlanta Dream has partnered with Victory to stream all locally broadcast Dream games for free, expanding the team's digital distribution strategy and g...

07/05/2026

Riedel Communications Appoints Marc Engroff as CFO; Frank Eischet Moves to Group COO Role

Riedel Communications has announced the appointment of Marc Engroff as Chief Fin...

07/05/2026

ARD Extends SES Satellite Distribution Agreement Through 2039

SES and ARD, Germany's largest public broadcasting network, have announced a long-term extension of their satellite distribution partnership through 2039. U...

07/05/2026

Case Study: How Pro Cheer League Built a Broadcast-First Arena Production

UpLight Technologies delivers a flexible video and lighting system for a new televised sportLaunching the Pro Cheer League required more than creating a compell...

07/05/2026

Full Day Productions and GSE Worldwide Launch Womens College Volleyball Showcase at AT&T Stadium

Full Day Productions and GSE Worldwide have announced Spikes Under the Lights, a...

07/05/2026

Deine persnliche Spotify DJ Experience ist jetzt in vier neuen Sprachen und weiteren Mrkten verfgbar

Seit dem Start im Jahr 2023 hat DJ (Beta) das personalisierte H rerlebnis von 94...

07/05/2026

Il DJ personalizzato di Spotify ora disponibile in 4 nuove lingue e in pi Paesi

Da quando stata presentata nel 2023, DJ (beta) ha aiutato a definire un'esperienza d'ascolto pi personalizzata per 94 milioni di utenti Spotify Premi...

07/05/2026

Your Personalized DJ Experience Is Expanding With 4 New Languages and More Markets

Since launching in 2023, DJ (beta) has helped shape a more personalized listenin...

07/05/2026

Seu DJ personalizado do Spotify t chegando em mais lugares - agora em 4 novos idiomas

Desde o lan amento em 2023, o DJ (beta) j ajudou a deixar a experi ncia de ouvi...

07/05/2026

Save Your Personal Podcast to Spotify and Listen Anywhere

From our earliest days, Spotify has been built on a simple principle: Great audio should be easy to reach. It's what's driven us to expand from music to...

07/05/2026

Spotify Celebrates API Heritage Month With New Music and Artist Spotlights

Asian and Pacific Islander artists continue to shape the global soundscape, pushing creative boundaries and connecting with fans worldwide. This Asian & Pacific...

07/05/2026

Symphonic Elements Chooir by UJAM

Company announce long-requested choir instrument In the latest expansion of their Symphonic Elements series, UJAM have introduced an all-new vocal instrumen...

07/05/2026

Buchla debut Ziggy synthesizer

Modular-inspired sound generation with digital control Buchla have introduced Ziggy, a new compact synthesizer built around the company's complex oscill...

07/05/2026

Polyend Drums hybrid drum machine

Combines analogue voices with digital synthesis and sequencing Polyend have announced Drums, a new hybrid analogue and digital drum machine that combines sy...

07/05/2026

Nektar Panorama CS12: Reaper & Fender Studio Pro support

Control surface now officially supports four DAWs When Nektar launched the Panorama CS12 control surface, it worked exclusively with Apple's Logic Pro, ...

07/05/2026

SGL Carbon: Expected lower sales, but EBITDA margin improved. Forecast confirmed

In the first quarter 2026, SGL Carbon generated consolidated sales of 184.5 million, which was 49.8 million, or 21.3%, lower than in the prior year (Q1 2025: ...

07/05/2026

Rohde & Schwarz and Greenerwave achieve precise and fast ESA antenna characterization using near-field technology

Rohde & Schwarz and Greenerwave achieve precise and fast ESA antenna characteriz...

07/05/2026

L3Harris Red Wolf + SKY RAIDER II INTERNATIONAL: Unmatched Flexibility for Kinetic Strike, EW, ISR and Support Missions

Two multi-role L3Harris products - the Red Wolf launched effects vehicle and SK...

07/05/2026

US Air Force Selects L3Harris to Develop Digital Infrastructure for its Advanced Battle Management System Network

L3Harris will be developing key features of a secure and resilient digital infra...

07/05/2026

New Nielsen Report Shows The Profound Impact of Asian Influence on Sports and Pop Culture

Alysa Liu and Shohei Ohtani Help Drive Viewership as 91 of the Top 100 Broadcast...

07/05/2026

IAB Tech Lab Introduces Standardized Signals For CTV Ad Portfolio

Share Copy link Facebook X Linkedin Bluesky Email...

07/05/2026

Cobalt Digital Wins Two Future Best of Show Awards at 202...

Cobalt Digital Wins Two Future Best of Show Awards at 2026 NAB Show Manufacturer Recognized by TV Tech and TVBEurope for Innovation in signal processing Cobal...

07/05/2026

FOR-A delivers creativity practicality and technical exce...

Software and hardware platforms, AI power and user-friendliness on show...

07/05/2026

Intinor brings advanced IP transport diagnostics and HDR...

Intinor will demonstrate its latest technical enhancements for the Direkt series at BroadcastAsia 2026. With a continued focus on reliable contribution and remo...

07/05/2026

Bitmovin Powers Global Film Streaming Platform MUBI

Bitmovin has announced that MUBI has chosen Bitmovin as its cloud VOD encoding partner, replacing MUBI's legacy on premises encoding setup to improve scalab...

07/05/2026

Meet Graduates from Berklees Class of 2026

Meet Graduates from Berklees Class of 2026 Members of this years graduating class reflect on their proudest moments at Berklee and look ahead to whats next. ...

07/05/2026

Convergence is Now Established Reality,' Says NAB 2026 Report

Share Copy link Facebook X Linkedin Bluesky Email...