As we begin Q2, FAST continues to dominate conversations as one of the most prominent growth sectors across the TV industry. While the US is undoubtedly the largest market, there are also smaller markets that boast a considerable number of unique channels. As new players continue to enter and many markets remain in the initial growth phase, many are now entering a period of optimisation characterised by slower growth, as platforms refine their offerings with the influx of better-quality content. Our FAST Tracker data reveals how these developments are taking place.
Looking at the net channel volume growth by market, it is clear that while some markets such as Australia, Mexico and Brazil surge in growth, some European markets are experiencing less growth in channel volume as they mature, with the US and the UK seeing as little as 1% and 7% respectively. Meanwhile, we’re seeing variation in the volume of channel growth among platforms in particular markets.
Content is King: US Studios and Broadcasters entering the game
In the US, the entry of traditional media businesses into the FAST market has significantly contributed to the improvement in channel quality, with nearly a quarter of the channels launched in the latter half of last year originating from US studios. In Europe, it is the broadcasters who are shaping this change as they bring high-quality local content to the market. Unlike in the US, it is local content which will be crucial if channels and platforms want to succeed in the increasingly competitive market. We can see from this sampling of French and German markets that most of the channels are owned by some of the biggest companies in their respective territories – TF1 in France and ZDF in Germany.
With both traditional media and broadcasters getting more involved, it still remains that content is king.
Channel churn: Platforms becoming more refined
As FAST players start to experiment with whats working and what isn’t, we’re seeing a significant increase of channel churn on platforms.
Last year in the EU5, nearly a quarter of unique channels were dropped from at least one platform. We can also see the number of channels being dropped from Pluto, Samsung, and Rakuten steadily increasing.
Single-IP, Single-Genre and Sports Channels are leading the way
While platforms become more optimised, activity is varying across channel genres, with notable growth of Single-IP, single-genre and sports channels as platforms continue to strengthen their lineup.
Single-IP have generally been considered as the best investment area in FAST, with 63% of respondents in our recent TV Industry Trends report identifying Single-IP as a key area, while Mixed-Genre was rated as less important. The emergence of sports channels further signals a shift, making them a key area to monitor in 2024 as platforms leverage the appeal of live event programming. This underscores the importance of straightforward and focused content propositions in the FAST landscape.
Looking at some of the Single IP channels that studios and broadcasters are utilising, it’s interesting to see that some of these series have a limited number of episodes and are already repeating content. For those harnessing the power of Single-IP, it will be important to consider the opportunity of switching branded content, especially from studios with vast libraries.
New Content Aggregators entering the FAST market
In addition to traditional FAST players like Samsung and LG, there’s a new breed of FAST channel aggregators entering the market, including activity by traditional free TV broadcast businesses such as ITVX in the UK, TF1 in France, and 7+ in Australia. What’s interesting about this shift, is that these broadcasters own the platforms and the majority of the channels on those platforms, allowing them to leverage their dominant position in the ads sales market.
Pay TV operators such as Virgin Media are also getting involved in multiple ways, including the integration of channels and/or apps into their EPGs. However, in the case of Virgin Media, FAST channels are being slotted into the bottom of the EPG as they start to test out their strategy. It will be interesting to see if they keep these separate or integrate them further.
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