Single IP channels (channels dedicated to a specific series or creator) have consistently been a cornerstone of the FAST ecosystem. However, is their value proposition still as high as it used to be?
Approximately, 32% of the global FAST market is made up of this channel subcategory, with series such as Top Gear, Unsolved Mysteries, Yu-Gi-Oh!, and Hell’s Kitchen all achieving global distribution.
Brand awareness and discoverability are at the centre of the value proposition of Single IP channels. However, their abundance within the market can also be down to the comparative ease in which they are able to be created. Whereas genre-specific and mixed content channels require a considerable amount of effort and expertise to schedule and programme effectively, Single IP channels do not need to strategically schedule multiple shows and usually play content chronologically. Additionally, Single IP channels benefit from having a lower threshold for minimum hours of programming than other types of channels.
Throughout 2024, most major platforms in the US seemingly doubled down on their commitment to Single IP. Pluto, Samsung, Vizio, Prime Video and Roku all increased the volume of Single IP channels on their platforms, with LG as one of the few exceptions. While investment into Single IP remains high, we are also seeing increased amounts of churn amongst this group of channels, with only LG and Roku dropping fewer in 2024 than they did in 2023. This possibly highlights the continuous need for refresh. While some serialised series, with no overarching storylines, may be able to hold onto sustained viewer bases, many may run out of steam quickly and need replacing after viewers initially binge them for a period.
Looking at the European market, we see an equally strong trend, with Single IP channels making up 40% of launched channels in the EU5 countries throughout 2024. This considerably outperforms their previous market share, growing at a comparatively faster rate that single genre and mixed genre channels. However, when looking at the breakdown of channels that contribute to this trend, we can see Single IP channels are spread across relatively fewer categories, with only scripted TV and entertainment (e.g. game shows and reality series) channels making up the majority of this growth.
The volume of unique channels in those same categories are significantly higher than the multi series single-genre counterparts. This may represent the push and pull effect, where the relative ease of setting up Single IP channels may result in many content providers considering the comparatively low investment, low risk entry into the market with little to no opportunity cost. However, this supply-side push may be counter-balanced by the demand-side requiring higher rates of refresh and declining viewing numbers after the first stint of binge-watchers have moved through.
As the market has evolved and matured, the conversations around FAST have focused on issues around monetisation as well as proposition improvement. Single IP channels have been a key component of the FAST ecosystem since its very start and whilst its unlikely that their importance will drop off we will undoubtedly see refinement in terms of how they are created and programmed going forwards. As the audience stabilises the possibility of channels becoming tired and in need of refresh will grow. Platforms are obviously seeing encouraging results from these types of channels as they provide easily promotable and marketable content that drives up awareness. To further this endorsement, we have seen platforms such as Samsung and LG invest significantly to acquire premium series, such as The Rings of Power and Suits, for their respective Single IP channel offerings.
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