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...

12/06/2026

YES Network and Gotham Sports App to Air Seven Athletes Unlimited Softball League Games

YES Network and The Gotham Sports App will air seven Athletes Unlimited Softball...

12/06/2026

UFL to Feature FAST Innovation Suite at 2026 United Bowl

The United Football League will host its FAST Innovation Suite at the 2026 United Bowl presented by Credit One Bank on Saturday, June 13 at 3:00 p.m. ET at Audi...

12/06/2026

InfoComm 2026: PTZOptics and LayerJot to Demo AI-Driven Camera Control

PTZOptics and LayerJot will present live demonstrations at InfoComm 2026 showing how natural-language AI prompting, robotic camera control, and on-device comput...

12/06/2026

InfoComm 2026: MultiDyne to Debut VF-9100 Fiber Transport Platform and Crescendo Audio Monitor

MultiDyne Video and Fiber Optic Systems will exhibit at InfoComm 2026, featuring...

12/06/2026

Eurovision Services Deploys Ateme Software-Based Frame-Rate Conversion

Ateme has announced that Eurovision Services is using Ateme's software-based frame-rate conversion technology for international live event workflows. The de...

12/06/2026

Bitmovin, Simplestream, and Xperi Partner to Support OTT Services on TiVo OS

Bitmovin and Simplestream have announced a partnership with Xperi to simplify the launch of OTT streaming services on TiVo OS smart TVs and devices. The collabo...

12/06/2026

Net Insight Deploys Nimbra 520 and Nimbra Edge for Multinational Corporate Live Production Workflow

Net Insight has announced that a multinational technology company is deploying a...

12/06/2026

MLB Players Inc., Athletes First Announce Content Partnership

MLB Players Inc., the business arm of the MLB Players Association, has announced a partnership with Athletes First to develop and sell brand partnerships across...

12/06/2026

G&D and VuWall Announce CommandKeyboard-Advanced for Network-Independent Control Room Operations

Guntermann and Drunck (G&D) and VuWall have announced the CommandKeyboard-Advanc...

12/06/2026

Philadelphia Union and Comcast Deploy Smart Technology at Subaru Park and WSFS Bank Sportsplex

Comcast Smart Solutions announces a new smart technology deployment with Major L...

12/06/2026

Elevation Worship Completes First Leg of 2026 Tour Using SSL Live Consoles and New UMD192 Interface

Elevation Worship completed the initial leg of its Elevation Nights 2026 tour ...

12/06/2026

AJA Announces KONA IP25 Integration with Colorfront Transkoder and On-Set Dailies

AJA Video Systems has announced KONA IP25 support for Colorfront Transkoder and ...

12/06/2026

InfoComm 2026: Audinate To Exhibit With New AVIO Install Adapters and Iris Camera Control Platform

Audinate Group Limited (ASX: AD8) will exhibit at InfoComm 2026 (Booth C7321, Ce...

12/06/2026

Pac-12 Appoints Scott Adametz as Chief Technology Officer

Pac-12 Commissioner Teresa Gould has announced the appointment of Scott Adametz as Chief Technology Officer. The Pac-12 describes the hire as the first CTO appo...

12/06/2026

InfoComm 2026: Grass Valley Introduces AMPP Edge Live for Enterprise Production

Grass Valley has announced AMPP Edge Live, a production system combining Grass Valley hardware, NVIDIA Blackwell GPU acceleration, and AMPP OS in a single platf...

12/06/2026

University of Texas's Brandon Rudy on a New Era of Live Sports Production in Austin

At one time a trailblazer with the launch of the Longhorn Network, the Universit...

12/06/2026

Ratings Roundup: NBA Finals Game 3 Hits 28-Year High; Stanley Cup Final Is Best Since 2015 Through Four Games

Ratings Roundup is a rundown of recent rating news and is derived from press rel...

12/06/2026

Chyron Releases PAINT 10.4 with Pro Football Data Integration and AI Player Cutout

Chyron has announced PAINT 10.4, an update to its illustrated replay and sports ...

12/06/2026

ESPN's MLB Productions Heat Up in June as Core Summer Schedule Gets Rolling

SVP, Production Mark Gross: With the new schedule, with not having every Sunday night, it's given us an opportunity to take a step back and reimagine what ...

12/06/2026

Televisas IBC Team Delivers for Opening Mexico Match

For Televisa Technical Engineering Manager Roberto N nez Ibarra and the small team of 12 technicians and two production personnel at the IBC things are already ...

12/06/2026

GearExpo UK: Home Studio Acoustics Talk

Simple Steps to Better Acoustics - Taming The Small Room Most of us mix in spare rooms and small spaces, where the acoustics fight us at every turn. At Gear...

12/06/2026

Meris introduce the Ottobit X

Latest addition expands vintage-inspired effects palette Meris' Ottobit pedal range draws its inspiration from vintage gaming consoles, and the latest a...

12/06/2026

Sonora Cinematic release Movimento Strings Inflections

Soundbox-based chamber strings series expanded Sonora Cinematic have just announced the launch of the second instalment in their Soundbox-based chamber stri...

12/06/2026

Research: Mixed Picture for FIFA World Cup Broadcast Revenues

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

Viant Launches Enhanced Publisher Solutions for CTV, Programmatic

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

AJA Announces KONA IP25 Integration with Colorfront Software

AJA Announces KONA IP25 Integration with Colorfront Software Brie Clayton June 12, 2026 0 Comments Collaboration enables uncompressed SMPTE ST 2110 I/O ...

12/06/2026

URSA Cine 12K LF Used to Create Visuals for STUTS' K-Arena Concert

URSA Cine 12K LF Used to Create Visuals for STUTS' K-Arena Concert Brie Clayton June 12, 2026 0 Comments Organic visuals projected on a giant scre...

12/06/2026

MTI FILM Acquires Mango New Edit, Expanding its Global Post-Production Services From Set to Screen

MTI FILM Acquires Mango New Edit, Expanding its Global Post-Production Services ...

12/06/2026

AI Point Tracking Speeds Up Complex VFX Tracks in Mocha Pro

AI Point Tracking Speeds Up Complex VFX Tracks in Mocha Pro Jessie Electa Petrov June 12, 2026 0 Comments The 2026.5 release adds automatic point trac...

12/06/2026

Bitmovin Partners with Simplestream and Xperi to Support...

Bitmovin, a provider of video streaming solutions, has partnered with Simplestream, a provider of OTT and broadcast solutions, and technology provider Xperi, to...

12/06/2026

Jigsaw24 Signs Deal to Resell Leostream Remote Desktop Ac...

Leostream Corporation, creator of the world-leading Leostream Remote Desktop Access Platform, today announced Jigsaw24, a leading B2B IT solutions provider wit...

12/06/2026

Study: 2026 Election Cycle to Hit Record $11.6 Billion Ad Spend

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

NAB Elects Leadership at June Board of Directors Meeting

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

FCC Believes World Cup Communication Will Score Highly

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

Broadcasters Back NO FAKES Act

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

Scripps Unveils Coverage Plans For America's 250th Anniversary

Share Copy link Facebook X Linkedin Bluesky Email...

12/06/2026

How Aussie indie games and screen are levelling up with IP

How Aussie indie games and screen are levelling up with IP 11 June 2026 Ari Harrison, Pro Jank Footy Head of Games Joey Egger and Ari Harrison of Umbrella sha...

12/06/2026

Netflix Unveils First-Look Images from Villaflor, Santiago Mitre's New Film

Back to All News Netflix Unveils First-Look Images from Villaflor, Santiago Mitre's New Film Entertainment 12 June 2026 GlobalArgentina Link copied to ...

12/06/2026

Cross the Boundaries of the Real World into the Spirit Realm in The East Palace', Premiering July 17

Back to All News Cross the Boundaries of the Real World into the Spirit Realm i...

12/06/2026

The Future of Studio Grading. Tokyo. 23 June 2026

With John Daro, DI Colourist at Warner Bros. Water Tower Color Tuesday 23 June, 10am-1pm or 3-6pm Restar Corporation Tokyo Register here John Daro is the ...

12/06/2026

New animated series The Grumpy Onion available in English and as Gaeilge on RT KIDSjr, RT2 and RT

Meet The Grumpy Onion Ireland's newest online sensation, all he wants is to ...

12/06/2026

RT stays Up All Night with brand new daily 2026 FIFA World Cup Vodcast

RT stays Up All Night with brand new daily 2026 FIFA World Cup Vodcast Adding to the fun around 2026 FIFA World Cup tournament, RT has launched a brand new d...

12/06/2026

June 11, 2026

A fentanyl countermeasure that adapts to combat future black-market drugs Scripps Research scientists developed a vaccine that teaches the immune system to rapi...

11/06/2026

HBSs Johannes Franken on Digital Innovations, the Role of the Influencer at the 2026 FIFA World Cup

The immense size of the tourney and its Atlantic-spanning operation also disting...

11/06/2026

Nielsen: Soccer Fandom in North America Tops 136 Million, Up 10.9% in Five Years

Nielsen has released a new soccer fandom consumer research report, The Fans Behind The Game: FIFA World Cup 2026 Edition, examining the soccer audience in the...