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

28/11/2025

Brides Asks for Compassion for Our Youths

Nadia Fall attends the 2025 Sundance Film Festival premiere of Brides at the Egyptian Theatre on January 24, 2025, in Park City, Utah. (Photo by Donyale West/...

28/11/2025

4 Reasons Why Keeping Your Spotify App Updated Matters and What You Might Be Missing

It's easy to ignore those little red update available badges. But when it ...

28/11/2025

FCC to Vote on LPTV Rules at Dec. Public Meeting

WASHINGTON Federal Communications Commission has released a tentative agenda for the December Open Commission Meeting scheduled for Thursday, December 18, 2025 ...

28/11/2025

Professional Fighters League Packs a Domestic, International MMA Punch (TV Sportsplay)

The Professional Fighters League is looking to super-serve fans of mixed martial...

28/11/2025

Fubo Launches Multiview Beta on Roku

Fubo has released in beta on select Roku devices a new feature that lets users display up to four simultaneous streams at once....

28/11/2025

WNBA Playoffs Continue: What's On This Weekend in TV Sports (Sept. 28-29)

The WNBA playoffs and Week 4 of the NFL regular season highlight the list of live sports events airing on television this weekend....

28/11/2025

Freeze Frame: B+C Hall of Fame 2024

The 32nd class of honorees to the B+C Hall of Fame took to the stage at New York's Ziegfeld Ballroom on September 26 for a gala induction event. Click below...

28/11/2025

Next Text: As DirecTV and Dish Try to Seize the Remains of the Day, Does It Even Matter?

We hold in our hands the very last Next Text for Next TV, the weekly back-and-fo...

28/11/2025

DirecTV Acquires Dish, Unifying Struggling Satellite Business

DirecTV said it made a deal with EchoStar to buy EchoStar's video businesses, including satellite-TV provider Dish TV and virtual MVPD Sling TV, for $1 plus...

28/11/2025

B+C Hall of Fame Announces Its Class of 2025

The Broadcasting+Cable Hall of Fame, the premier industry event paying tribute to the influencers, innovators and shining lights of broadcast, cable and streami...

28/11/2025

Sky Sports x Slawn drop limited-edition football jersey that unlocks a month of free content from the home of sport

Friday 28 November 2025 Sky Sports x Slawn drop limited-edition football jersey...

28/11/2025

Rohde & Schwarz shows resilience in a challenging environment, revenue exceeds three billion euros for the first time

Rohde & Schwarz shows resilience in a challenging environment, revenue exceeds t...

28/11/2025

Changing children's lives for good: Donations for the RT Toy Show Appeal 2025 open tonight

Unwrapped: The Toy Show Appeal - airing this Sunday on RT One and RT Player- s...

27/11/2025

Vizrt Launches Viz One 8.1 With AI-Powered Features

LONDON Vizrt has added several AI-driven advanced features offering improved speed, intelligence and accuracy in the newest version of its media asset managemen...

27/11/2025

Prime Video Debuts AI-Powered Video Recaps

Prime Video has launched AI-powered video season recaps in a beta version for select English-language Prime Original series in the U.S., a move Amazon is callin...

27/11/2025

Netflix's 'Raat Akeli Hai: The Bansal Murders' Marks a Grand World Premiere at IFFI Ahead of Its Global Release on 19th December

Back to All News Netflix's Raat Akeli Hai: The Bansal Murders Marks a Grand...

27/11/2025

Sky unveils first look image from high-stakes action thriller Prisoner, coming 2026

Tahar Rahim and Izuka Hoyle star in the gripping six-part Sky Original from Acad...

27/11/2025

Sky Arts Reveals the Nations Greatest Basslines and Queen Reign Supreme

Thursday 27 November 2025 Sky Arts Reveals the Nation's Greatest Basslines - and Queen Reign Supreme The UK's most iconic basslines have been revealed...

27/11/2025

Stranger Things 5': Prepare for One Last Adventure With Our Final Season Coverage Guide

Back to All News Stranger Things 5': Prepare for One Last Adventure With O...

27/11/2025

Elastic Compute for a Sustainable Media Industry

The media industry has a paradox at its core. It's an industry built on light, color and imagination, yet behind the scenes, it's powered by one of the ...

27/11/2025

Arqiva Achieves Five-Star GRESB Rating

Rating reflects rating progress across areas including policies, diversity & inclusion, health & safety and Net Zero leadership Winchester, UK, 27 November 202...

27/11/2025

Retail Media Audits Explained: What Networks Need to Know

What are the industry standards for Retail Media? Kathryn explains that certification is based on the IAB Europe Retail Media Measurement Standards and the IAB ...

27/11/2025

Katie Taylor, Rachael Blackmore and Arthur Gourounlian among the guests on this week's Late Late Show

World champion boxer and Irish sporting icon Katie Taylor will be in studio this...

27/11/2025

Tonight on RT Prime Time, serious child protection concerns emerge over online gaming platform, Roblox

Roblox, one of the world's most popular online gaming platforms for primary ...

27/11/2025

The Ultimate Black Friday Deal Is Here

Black Friday is leveling up. Get ready to score one of the biggest deals of the season - 50% off the first three months of a new GeForce NOW Ultimate membership...

26/11/2025

SVG Sit-Down: Prime Video EP Mike Muriano Previews Massive Black Friday Slate Featuring NFL, NBA, and Golf

SVG Sit-Down: Prime Video EP Mike Muriano Previews Massive Black Friday Slate Fe...

26/11/2025

Inside the Archives: Winter Is in the Air and in Our Festival Films

A cinematic snow sculpture at the 1995 Sundance Film Festival. Photo by Randall Michelson...

26/11/2025

10 Book Podcasts You Can't Miss

Book podcasts are booming. On Spotify, you'll find everything from celebrity book clubs to deep dives with bestselling authors. And in markets where audiobo...

26/11/2025

JioStar and Nielsen Unveil Breakthrough Cross-Screen MeasurementStudy, Redefining Advertising Effectiveness in Live Sports

Mumbai, November 24, 2025: In a first-of-its-kind initiative, JioStar, in collab...

26/11/2025

ITN Deploys IP-Based Production Control Room

LONDON Factual content producer ITN Productions has launched a new low-latency IP gallery for news bulletins....

26/11/2025

YouTube TV, TelevisaUnivision End Lengthy Blackout

MIAMI TelevisaUnivision said it struck a new multiyear distribution agreement with YouTube TV that includes distribution of TelevisaUnivision's U.S. network...

26/11/2025

OpenDrives Bridges the Gap Between IT and Creatives with...

OpenDrives, Inc., a leader in software-defined data storage and data services, today announced the launch of the Atlas Corporate Creative Solution. This new Atl...

26/11/2025

Disguise to Showcase Future of Event Visuals at LDI 2025

Disguise, the industry-leading company powering the world's biggest live performances, is partnering with pioneering LED wall manufacturer DVS to give atten...

26/11/2025

HighField AI Expands Global Channel Partner Network to Ac...

HighField AI, the pioneer in agentic and multimodal automation for broadcast and media production, today announced the expansion of its global channel partner n...

26/11/2025

Mono Streaming selects PlayBox Neo to manage English Prem...

As high-stakes Premier League fixtures approach and additional premium content launches, with MONO positioning themselves to dominate Thailand's sports stre...

26/11/2025

Bell Centre arena in Montreal elevates fan experience wit...

Hosting a wide variety of events from high-intensity NHL games to complex live music concerts and major entertainment productions, Montreal's 21,000 capacit...

26/11/2025

Vizrt launches AI-powered advances for speed and accuracy...

Vizrt, the leader in live production technology revolutionizing viewer engagement and experience, releases AI-driven advances focusing on speed, intelligence, a...

26/11/2025

ITN Launches Low-Latency IP Control Room Powered by Teche...

ITN Productions, an award-winning factual content producer, today launched a new low-latency IP gallery for news bulletins. Responsible for delivering a leading...

26/11/2025

Ikegami Maintains Initiative in Broadcast Systems Develop...

Ikegami reports ongoing advances throughout 2025 in developing and delivering coordinated television production solutions that maximize quality, versatility and...

26/11/2025

Fubo, NBCUniversal Trade Barbs in Carriage Dispute

Following the Nov. 21 blackout of NBCUniversal channels on Fubo, the two sides have traded barbs about their inability to reach a new carriage deal....

26/11/2025

Global Sports Rights Spending to Top $78 Billion in 2030

LONDON As TV sports rights become increasingly important for both broadcasters and streamers, Ampere Analysis predicts global investment in the genre will surpa...

26/11/2025

Vubiquity Earns AWS Media & Entertainment Competency Status

LOS ANGELES Vubiquity said it has achieved the Amazon Web Services (AWS) Media & Entertainment Competency as part of the AWS Partner Network (APN). This designa...

26/11/2025

Comcast Pays $1.5 Million to Settle FCC Data Breach Probe

WASHINGTON The Federal Communications Commission's Enforcement Bureau said it has entered into a consent decree with Comcast calling for the cable company t...

26/11/2025

Berklee Named to the Hollywood Reporters Top Music Schools List

Berklee Named to the Hollywood Reporters Top Music Schools List The publication highlights the college's screen scoring program, industry partnerships, and ...

26/11/2025

Animated Series Love Through a Prism' Casts New Light on Romance Between Aristocrat and Exchange Student in London

Back to All News Animated Series Love Through a Prism' Casts New Light on ...

26/11/2025

NALIP Unveils Fifth Cohort of Director Incubator

Back to All News NALIP Unveils Fifth Cohort of Director Incubator Social Impact 26 November 2025 United States Link copied to clipboard The National Assoc...

26/11/2025

YouView Achieves Greenly Gold Certification for Sustainability

YouView Achieves Greenly Gold Certification for SustainabilityNov 26, 2025 YouView is proud to announce a Gold Certification award from Greenly for our perform...