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 ...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

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...

01/07/2026

Broadcast Management Group Appoints Kathy Samuels as Director of Creative Services

Broadcast Management Group (BMG) has announced the appointment of Kathy Samuels ...

01/07/2026

Shade Launches Custom Objects and Automations

Shade has announced Custom Objects and Automations, a platform expansion releasing June 29, 2026, that adds database and workflow automation capabilities direct...

01/07/2026

FOR-A America Adds Two Regional Sales Leaders

FOR-A America has announced the addition of Jaz Wray and Fernando Cruz to its U.S. sales team. Both report to Ernie Leon, Senior VP and Head of Sales and Strate...

01/07/2026

NBC Sports To Present All 15 MLB Games Nationally on July 4 Weekend Star-Spangled Sunday'

NBC Sports will air all 15 MLB games nationally on Sunday, July 5, across NBC, P...

01/07/2026

Clear-Com Upgrades Wireless Communications for Jeopardy! and Wheel of Fortune

Clear-Com has announced a wireless communications upgrade for Jeopardy! and Wheel of Fortune, deploying FreeSpeak II and FreeSpeak Icon systems across both prod...

01/07/2026

England Deploys Sony STATSports Live GPS Tracking at FIFA World Cup 2026

England's performance team will use Sony's STATSports APEX GPS tracking system to monitor player physical data in real time during FIFA World Cup 2026 m...

01/07/2026

Adder Technology Appoints Neil Hillier as CEO

Adder Technology has announced the appointment of Neil Hillier as Chief Executive Officer, effective July 1, 2026. Hillier succeeds Adrian Dickens, who transiti...

01/07/2026

Bitcentral Splits Into Two Companies: Bitcentral and ViewNexa

Bitcentral, Inc. has announced a strategic transaction creating two separate companies. The Production and Playout business will continue as Bitcentral, now own...

01/07/2026

DAZN48 Creator Initiative Draws Global Participation for FIFA World Cup 2026

DAZN has announced results from DAZN48, its creator initiative for the FIFA World Cup 2026. Launched in April 2026, the program received thousands of applicatio...

01/07/2026

IDEA To Induct Daktronics Sarah Rose Into Hall of Fame

Sarah Rose, VP, global services, Daktronics (NASDAQ: DAKT), will be inducted into the Information Display and Entertainment Association (IDEA) Hall of Fame at t...

01/07/2026

Gravity Media Delivers Distribution and Streaming Services for World Economic Forum in Dalian

Gravity Media and the World Economic Forum's production team provided broadc...

01/07/2026

Insight Productions Launches Insight Storm, a 53-Foot Esports Broadcast Truck

Insight Productions has announced the launch of Insight Storm, a 53-foot mobile broadcast unit built for esports production. The truck is built around a Ross Vi...

01/07/2026

ESPN Announces America 250 Content Initiatives Across Platforms

ESPN has announced several content initiatives marking America's 250th anniversary, as part of The Walt Disney Company's Disney Celebrates America pro...

01/07/2026

At Cosm, FIFA World Cup 2026 Is a Coming-of-Age Moment as Shared Reality Becomes Bucket-List Entertainment

Eleven production kits, REMI workflows, and cloud distribution bring 40 World Cu...

01/07/2026

SVG Regional Sports Production Summit Draws Industry Leaders to Denver for Deep Dive on Evolving RSN Landscape

The conference also discussed the opportunities offered an industry that is endu...

01/07/2026

Mountain West Launches MW+ Streaming Platform Powered by Kiswe

The Mountain West Conference has announced the launch of MW , a direct-to-consumer streaming platform powered by Kiswe. The platform will carry live Mountain We...

01/07/2026

Tracktion unleash Waveform 14 DAW

New AI Assistant, Multi-channel Audio, ARA2 improvements & more Tracktion's DAW software has just received its latest major update, gaining a selection ...

01/07/2026

The Crow Hill Company release Brackish Pads

Stammering, stuttering, strangulated tones The Crow Hill Company's latest creation promises to be the most original sound set they've produced to d...

01/07/2026

Sweetwater & Andertons launch Darkglass Anagram Limited Edition Guitar Essentials

Exclusive run of limited-edition modelling pedals Sweetwater and Andertons M...

01/07/2026

Call for NFVF funding applications to attend Film Festivals and Markets taking place from 01 August 2026 - 31 October 2026

The National Film and Video Foundation (NFVF) is pleased to announce that the ca...

01/07/2026

FCC Plans to Auction 160 MHZ of Midband Spectrum

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

CBS Miami Launches Hope 4 Venezuela' Relief Effort

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

Riedel, SKAARHOJ Expand Collaboration With SimplyLive Integration

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

Gray Media to Buy American Spirit Media's TV Stations

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

Cascade PBS Launches App Solution Provider 'Local Public

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

Manfrotto Introduces UNCOVER, the new premium camerabag collection for modern hybrid creators

Manfrotto Introduces UNCOVER, the new premium camera bag collection for modern h...

01/07/2026

Blackmagic Design Powers Houston Tamil Sangam Literacy Competition

Blackmagic Design Powers Houston Tamil Sangam Literacy Competition Brie Clayton July 1, 2026 0 Comments Volunteers use ATEM Mini Pro, Blackmagic Desig...

01/07/2026

Riedel, SKAARHOJ Expand Collaboration WithSimplyLive Integration

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

PlayBox Technology Publishes State of Broadcast Infrastru...

PlayBox Technology has published State of Broadcast Infrastructure 2026, an in-depth industry research report examining the technologies, operational challenges...

01/07/2026

Jigsaw24 Appoints Alan Henry as Head of Sales for Media a...

LONDON, UK, 1 JULY Jigsaw24 has appointed Alan Henry as Head of Sales for Media and Entertainment, reinforcing its continued investment in helping broadcaster...

01/07/2026

Content Vault Partner with XMA to Distribute Universal Fi...

Content Vault, the patent-pending secure content distribution platform protecting high-value media from disclosures, theft and unauthorised access, today announ...

01/07/2026

Bitcentral Announces Strategic Evolution to Create Two F...

Bitcentral, Inc. a leading provider of enterprise software and digital media solutions for news, sports and entertainment broadcasters, as well as streaming pla...

01/07/2026

Adder Technology Names Neil Hillier as CEO

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

IBCAP Opens New Anti-Piracy Lab in Denver

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

FCC Plans to Auction 160 MHZ of Mid-Band Spectrum

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

CBS Miami Launches 'Hope 4 Venezuela' Relief Effort

Share Copy link Facebook X Linkedin Bluesky Email...

01/07/2026

Groundbreaking First Nations Screen Business Accelerator launched through national partnership

Groundbreaking First Nations Screen Business Accelerator launched through nation...

01/07/2026

Chyron Launches the All-New Chyron Academy: A Reimagined, Hands-On Learning Experience for Live Broadcast Production

Chyron Launches the All-New Chyron Academy: A Reimagined, Hands-On Learning Expe...

01/07/2026

Amplium Captures Kawasaki Brave Thunders Game with Blackmagic URSA Cine Immersive

Amplium Captures Kawasaki Brave Thunders Game with Blackmagic URSA Cine Immersiv...

01/07/2026

Boris FX Optics Expands Plugin Support to Apple Photos, Capture One, and Affinity Photo

Boris FX Optics Expands Plugin Support to Apple Photos, Capture One, and Affinit...

01/07/2026

Fussy asks Britain one simple question: Are you a Tosser?

Sky Zero Footprint Fund-backed TV campaign featuring Deborah Meaden challenges consumers to rethink everyday bathroom wasteWednesday 1 July 2026 Fussy asks Bri...

01/07/2026

New Sky research reveals postcode lottery leaving girls behind in sport

Constituency-level analysis reveals where girls miss out most on sport - and where targeted action could unlock more than £640 million in economic and health be...

01/07/2026

Riedel and SKAARHOJ Expand Collaboration With SimplyLive Integration

Wuppertal July 1, 2026 Riedel and SKAARHOJ Expand Collaboration With SimplyLive IntegrationRiedel Communications today announced an expanded collaboration wit...

01/07/2026

Apple Creator Studio gets smarter, faster, and more connected - UPDATE - Posted on 30 June 2026

Apple today introduced power-packed updates to Apple Creator Studio, a groundbre...

01/07/2026

Nectar360 becomes first UK Retail Media Network to achieve IAB Europe Certification following independent ABC audit

Nectar360, the Retail Media, Loyalty and Insights business of the Sainsburys Gro...