Streaming: Why 'FAST' channels are becoming popular

The latest Nielsen data reveals YouTube's commanding position in the streaming landscape, with the platform leading viewership figures for May. This achievement comes amid a shifting strategy among streaming services, as many now introduce free and ad-supported tiers to attract a broader audience.

Yahoo Finance's Alexandra Canal breaks down the details, shedding light on the emerging phenomenon of FAST (Free Ad-Supported Streaming TV) channels. These channels are gaining traction as viewers seek cost-effective alternatives to traditional subscription models.

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This post was written by Angel Smith

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I want to zoom out a little bit here because I know you've been following some of the conversation around streamers, potentially offering free access to their platforms while also kind of having an ad supported here that can pay for that.

Is that even I'm so fascinated in this?

Because why would Netflix do something like that when I'm already used to pay?

Why would they offer free?

It's obviously to gain market.

I'll let you answer the question.

I just, I'm so confused by the thinking.

So the thing is there's a lot of different types of platforms out there, right?

You have your subscription based platforms that you can get from a Netflix or Disney Plus, but there's also free ad supported platforms.

They are called fast channels.

And that's your Roku TV to be, which is owned by Fox Pluto TV, which is owned by Paramount.

And I thought the same thing, why would you choose to want to watch as why is this an attractive offering for consumers?

But Nielsen data shows that all of those fast platforms are actually having pretty significant growth to be, for example.

So 46% year over year increase when it comes to overall viewership.

Its average audience is now ahead of some of those traditional streamers like a Netflix or Disney Plus.

And then Ro you captured a platform that 1.5% share overall TV and was the only platform to actually climb the ranks for the month of May.

So it points to this desire for free content as all of these streaming platforms are raising their prices.

And it also shows that the optionality that consumers have if you are choosing an ad supported here, if you are choosing to watch ads, because it is free, you're more willing to watch those ads are more engaged, that's attractive to a buyers.

So experts that I spoke with said, that's largely the driver also going back to youtube.

That's really the first free ad supported service that we had.

And if you think about it that way, a lot of these younger consumers are now more used to ads, they're more used to having content at the click of a button and they don't have to pay those subscription fees.

So it's an interesting time that we're seeing amongst all of these streaming platforms.

And what does this mean in the future?

Uh The experts that I spoke with said that it means more bundles and that potentially we could see a world where you to create your own bundle, have a fast channel, have a subscription based channel and then hopefully that provides all the content that you want.

So it's, it's just a time of disruption right now.

But to me this stood out, especially as these Nielsen numbers trickled in for the month of May.

So interesting, I find myself accidentally stumbling upon the free offerings on my TV.

It's right.

And a lot of them are aggregators of really top pieces of content.

You can watch Top Gun on Pluto TV.

So why would you not do that?

And you have Roku dabbling in original content.

So, you know, we there for the consumer, it's great.

You have a lot of different choices.

Yeah.

And I also wonder how much of this is also just a sign of the more macro environment that we're in right now, right?

Just in terms of people being pressed for cash, many people having to make those tough decisions and maybe they, that is contributing to some of that outsized growth that you were just mentioning of these free offerings versus those that paramount now they were raising prices on Monday coming August.

So it just keeps, keeps happening.

It, it adds up at the end of the day.