Free ad-supported streaming TV (FAST) channel revenue grew almost 20 times between 2019 and 2022, and is set to triple between 2022 and 2027 to reach $12bn according to exclusive new research from Omdia.
FAST channels are increasing rapidly with more than 1,500 channels already available in the USA.
”The number of channels and revenue growth will be significant in the next five years. Improving content discovery will be critical to the success of those channels,” said Media and Entertainment Senior Director Maria Rua Aguete speaking at the recent Content Americas 2023 conference. ”FAST channels offer numerous benefits to content owners such as the option to monetize old and unused library content and offer as a new content bundle.”
Much of this growth will be driven by the US, which currently accounts for approximately 90% of the global FAST channel market valued at just under $4bn in 2022. By 2027, the US FAST channel market will exceed $10bn in revenue.
Over the coming years, FAST channels will grow the quickest outside of the US driving the US share of global revenue down to 86% by 2027. Although the US will continue to dominate the market, a $1.6bn revenue opportunity will emerge for FAST channels outside of the US by 2027.
Three of the five largest individual FAST markets in 2027 will be English-speaking nations – namely the US, UK, and Canada. Nevertheless, Canada, Germany, and Brazil, which will be in third, fourth and fifth place, respectively, will offer mainstream FAST opportunities for non-English content.
The UK and Canada, which enjoy a significant overspill of content from the US, will have FAST markets worth over $500m and $300m, respectively, by 2027.
”Omdia forecasts that FAST channels in Germany will generate just over $200m in the same year, when those in Brazilwill hit revenues of $100m – representing around half of the total Latin American FAST market, which will be worth $207m in 2027. FAST revenue in Mexico will be $93m in 2027, making it the seventh-largest individual FAST market” concludes Rua Aguete.
Photo by Pawel Czerwinski on Unsplash
