Free, ad-supported streaming content gaining currency, attracting advertisers

The channels, targeted at niche audiences, are ad-supported like linear TV channels, but allow content owners with specialized libraries including music, news or regional content, to build their own audience independent of traditional networks. For advertisers on the other hand, FAST offers the advantage of targeted advertising compared to traditional broadcast, along with new ad formats beyond the 30-second commercial, allowing them to engage a highly engaged CTV audience. According to a recent Ficci-EY report, AVoD (advertising video-on-demand) and FAST content dominated OTT viewership in 2023, together making up 81% of total streaming hours.

A connected TV is one that's connected to the internet, and typically used to stream video.

Streaming services more accessible

“The rise of FAST channels in India is being driven by a confluence of factors that cater to viewers, content owners, and advertisers alike. Increasing internet penetration and affordability of smartphones are making streaming services more accessible, with a projected 60 million CTV devices expected in India by year-end. This, coupled with a shift in viewing habits from traditional TV to streaming platforms, is creating a massive potential audience for FAST channels," said Jay Ganesan, senior vice-president, APAC at Amagi, a media tech start-up. 

These channels cater to diverse audiences by offering niche content like local news and action movies, Ganesan said. On the other hand, for advertisers, FAST offers the advantage of targeted advertising compared to traditional broadcast, along with new ad formats beyond the regular 30-second commercial.

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Diverse content

FAST channels focus on niche and specialized content to tap specific audience segments, agreed Sahil Chopra, founder & CEO, iCubesWire, a mobile marketing platform. Unlike linear channels aiming to reach masses, FAST channels pay more attention to diverse interests, such as specific genres or languages, Chopra explained.

To be sure, both FAST and linear TV combine scheduled live programming with ad-led content, making their programming styles similar. However, FAST services often employ sophisticated algorithms to curate linear channels around themes or viewer behaviours, giving it a more personalized touch, said Avinash Mudaliar, CEO, OTTPlay, a recommendation and content discovery platform for streaming services launched by HT Media Labs (part of the same organization as Mint). “From a financial standpoint, FAST opens doors for cord-cutters and CTV device users to access a wide range of FAST channel options on their devices. Consumers save as they no longer need to invest in antenna, modems and additional subscription services for access to linear bundled PAY TV services. They're typically accessible from various devices, including smartphones, tablets and laptops," Mudaliar said.

For now, news networks such as NDTV, ABP, Zee News and TV Today have launched FAST channels in India, besides QYOU Media which operates three such channels—The Q, Comedistaan and Q Marathi. Nikhil Kumar, chief growth officer at mediasmart, a programmatic advertising platform, said FAST channels in India currently give access to more than 15 content genres, spanning categories like news, entertainment, lifestyle, music, kids, comedy and sports. The programming includes not only national content, but also international programming that might not always be available on linear TV.

Revenue challenges

However, media experts point out that the core operating model of FAST channels poses several challenges. Vikas Khanchandani, CEO, APAC, Distro Scale, a video service platform, said that like any new medium, there are teething issues with FAST channels where the volume of local content needs to increase as large Hindi and other language content players haven’t entered the space yet.

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“The income of these channels relies entirely on ads, lacking the steady revenue stream of subscription fees enjoyed by regular TV channels. Acquiring quality content becomes more difficult without the financial flexibility provided by subscription income. Also, understanding viewers is paramount for showing relevant ads and commanding higher rates, necessitating costly investments in data capabilities. Lastly, standing out amidst the plethora of streaming options demands significant expenditures on marketing and innovative strategies to capture viewer attention," said Russhabh R Thakkar, founder and CEO, Frodoh World, an ad tech platform offering advertising solutions for CTVs. 

While FAST channels may have lower entry costs, as they don't require cable or DTH distribution, sustaining the business purely through advertising revenue makes it a tougher model to crack, especially for new and niche players entering the Indian market, Thakkar added.

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