This brings me to perhaps most-important, long-lasting trend, currently lapping the FAST Track: The Televisioning of FAST.
FAST’s main appeal to audiences is its cost: zero dollars per month. The chief appeal to publishers is also its cost: super low. However, right now, both constituencies are getting precisely what they pay for. Viewers are finding a chaotic, nearly indecipherable set of programming cul-de-sacs, with mixed-quality programming, extremely high ad repetition, very little usable on-channel promotion, and daunting choice paralysis. As a result, publishers are garnering audiences who sample a great deal, but watch very little, amounting to shallow engagement, and less-than-desirable demographics.
This too, is a FAST call-back to the early days of Cable TV. And, just as Cablers evolved to improve their tangible business metrics, my prediction is that the year ahead will see FAST begin to mature into a real business. Serious programmers will force their channels to grow up, making major investments in programming and promotion, and hobbyists will fade away. Additionally, just as with Cable TV before it, we will see FAST programmers scale up, amortizing operations across many channels and verticals either through new launches or channel/library acquisitions, while smaller, one-off programmers will either get acquired or wither away.
This is exemplified by major moves by big traditional media companies of late such as A&E, now with eleven FAST channels; Sony aggregating their huge content library across eleven FASTs; BBC who moved from only licensing programming to other FASTs, to operating seven of their own; AMC, now bullish on FAST with 8 channels; Hearst and Cox Media Group’s local news FASTs; Hallmark’s recently launched FAST movie channel; and ViacomCBS and FOX who are all-in on FAST with PlutoTV and Tubi respectively. Among non-billion-dollar conglomerates, FilmRise, Blue Ant and Cinedigm have built substantial channel groups, with numerous channels sharing centralized distribution, ad sales and operations. Vevo, far-and-away the biggest of the music video FAST groups, personifies another growing strategy for managing operations, containing costs and maximizing revenues by partnering with white-label back-end solution provider Zype – minimizing overhead, while accessing the very latest playout tech stack.
However, with the growth of FAST among audiences, and a deep desire for more quality advertising environments among television marketers, I predict that the FAST ecosystem will see substantial maturation and professionalization in the year ahead. This will come in the back office, with grown up scheduling, ad sales and operations across the board, but also on-screen, with higher-quality content, far better promotion, and a substantial ramp-up in original programming. 2022 will see considerable Televisioning of FAST.
A good, specific example was announced recently by Fast Studios, who operate two existing sports FASTs and are about to launch a new channel, which borrows heavily from the best practices of Cable TV, adapted for a FAST future. This year, Fast Studios, which already runs single-focus sports channels Spartan TV and Racing America, will launch the Women’s Sports Network, dedicated 24/7/365 to Womens Sports and the Women Athletes who play them.
The network won’t be available as part of a traditional cable TV package. Instead, its founders plan to launch the service on free, advertiser-supported, streaming TV — the industry’s fastest-growing sector. - LA Times
The LA Times Business Section covered this launch so much like the launch of a new cable network from back in the day, I felt I had fallen into a time warp. And Fast Studios’ plan for WSN feels very much like the bravest, boldest, and smartest pioneers of the heyday of the Cable Wars. They have found an enormously underserved niche – 40% of sports are played by women, yet just 4% of sports of TV is Women’s Sport – they’ve identified a large and eager advertiser base (Nike, Amex, Adidas, Budweiser), and are dedicating enough programming and marketing investment to win the race in their space.
Sports is a somewhat popular FAST genre. World Poker Tour has thousands of hours of programming, and boasts live tournaments, so their viewership (according to interviews with insiders) is relatively high. As I mentioned above, though, the vast majority Sports Cars do not have actual live sports, and instead mostly air replays of games or matches, or shoulder programming that often leave audiences unimpressed.
Unlike any previous FAST channel I’ve heard of, Fast Studios is investing “millions” in the launch of Women’s Sports Network and on the creation of exclusive, original programming for the channel, including a daily live SportsCenter-like show focused on all things Women’s Sports. They’ve also brought on major IP partners including US Ski & Snowboard, the World Surf League and even the LPGA, timed to launch on the 50th Anniversary of Title IX in June. It’s so reminiscent of paid TV channels and early ESPN, they should call it SHE-SPN (I’ve already secured this URL, so they’ll have to pay me if they change the name). It is also likely the start of a major trend in the space.
Fast Studios realizes what few in this space have, but many will: Just because it’s linear, doesn’t make it TV. And while the linear/always-on nature of FAST is what has piqued the curiosity of viewers, a channel cannot live by sampling alone. Televisioning FAST involves investing in original programming; investing in on-air promotion; investing in and building out professional ad sales machines… If you see a trend here, it’s because this maturation process is not for the faint of heart, or the fearful of investment.
Fast Studios is not alone in this POV. In 2021, Roku greatly stepped-up their investments in both original programming and ad sales infrastructure, acquiring Quibi’s substantial slate and Funny or Die’s branded content studio. Tubi has launched original programming and was at the very core of Fox Corp’s upfront presentation. PlutoTV is now a huge part of ViacomCBS’s (now Paramount’s) ad sales strategy, with major investments in infrastructure and worldwide rollout. With just 9 million paying subs, Peacock, may not be much of an SVOD, but they are now monster player in FAST, and packaged with all things NBCU. Samsung, LG and Vizio are investing heavily in their FAST platforms, partnering with channels, acquiring programming, and even experimenting with distribution outside their own ecosystems. Amazon has ploughed enormous investment into IMDBtv and FireTV News.
Advertisers are taking notice. In 2021, according to nScreenMedia and Verizon Media, FAST platforms sold $2 billion in advertising, which will grow to more than $4 billion in 2023. That’s FAST growth.
Of course, this is eclipsed by the $29 billion in revenue YouTube had in 2021. And for those programmers, platforms and professionals living in the FAST lanes, here’s the rub…
Emerging FAST channels are not just competing with big drivers on the FAST Track, but also other premium paid digital players such as Hulu, HBOMax/DiscoBrothers, and of course, the Digital Video Death Star that is YouTube. To succeed on this Track, you will need fuel from scale, reach, professional infrastructures, far more usable dashboard data, and substantial investments in promotion and programming. This means that the advantage on this Track is with major conglomerates taking FAST seriously, and independents investing serious money into their operations, marketing, and content.
The FAST And The Serious - TVRev
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