So it’s no wonder that publishers are turning to FAST as a solution to the need to keep revenues growing. But is FAST a long-term solution? It’s certainly the shiny new thing, but is it the best strategic play?

With FAST channels earning over $12bn globally by 2027, doubling today’s levels (Omdia data), it’s clear that there is gold in those mountains. As with AVOD, FAST channels inventory can be sold directly or programmatically.  But unlike AVOD, with FAST the media owner doesn’t bear the technology, stream delivery and marketing costs. On paper it is all upside if you own content that audiences crave.

But because FAST is offsite, it can struggle to reach the CPMs of more addressable forms of advertising – where first-party data is involved, for example.

The second challenge FAST faces is that of demographic. While audiences are growing in size, they tend to consist of older age groups. That’s fine in itself, but it does provide a limitation for brands looking to reach other demos, or extend reach beyond that older group.

Viewing behaviour also poses a challenge. Linear FAST channels are ideal for long streaming sessions – the TV equivalent of background music. This means they’re not likely to fare well on attention, and will quickly meet frequency caps.

Another question to ask is how the FAST channels will work alongside existing channels, and if there is a danger of audience cannibalisation.

Then come the technological limitations. Whilst third-party FAST vendors’ tech is admirable in how easy it makes the process, it means an extra partner and all the complications that come with that. For data-driven businesses it causes a lot of headaches. Often these third-parties are black boxes, with little in the way of actionable analytics.

With these considerations in place, let us revisit the first question – does FAST offer a revenue solution?

Naturally, the FAST format is designed to provide an easy access point for viewers. And simplicity is at the heart of the FAST proposition. Spinning up FAST channels is theoretically easy; most often they consist of just one IP, and of content that is already ready-to-go, likely sitting dormant. So, it’s a no-brainer way to make money from content that’s gathering dust.

Yet content owners might be just as well served spending their time and energy looking more closely at their existing channel and advertising set up. There are always efficiencies to be made on O&O channels which could make a significant impact on the bottom line.

Ad errors alone account for a huge hole in revenue. These can mostly be avoided, if you know what caused them. Dedicating resource to spotting, and fixing ad errors quickly, could be just as rewarding as standing up a new channel.

There’s also the ongoing job of cleaning the programmatic pipes, and supply/demand path optimisation to undertake. This can’t be done without clear sight of how the whole chain is performing – which again comes down to data. These close-to-home existing issues are easy to overlook, and tricky to dig down into. But they’re crucial when every penny counts.

Perhaps it’s worth considering whether to focus on the massive savings that could be made in the existing set-up rather than investing resources in a whole new set-up.

Where FAST channels are a part of a broader strategy, make sure that the emphasis is not just on establishing the channels. Once they’re live, they must be hawkishly watched, data must be scrutinised, opportunities to tweak ad campaigns, content delivery and QoE must be found.

FAST channels alone are not the answer to revenue woes. But an overall scrutiny of all streaming data, on Owned and Offsite properties, is.

Some (though not all) of the major international studio groups are going all-in on their owned-and-operated (and direct-to-consumer) ‘Plus’ apps, hoping they will become the home for digital viewing of their content. And broadcasters everywhere have been investing heavily in their ‘Player’ services, including deeper catalogues that help them evolve from catch-up services to destinations in their own right. But speaking at Connected TV World Summit three weeks ago, Jonathan Lewis, Head of Commercial Innovation & Partners at Channel 4 Television, explained that Channel 4 was taking a balanced approach to digital distribution.

Focusing on the YouTube deal in particular, he said: “We don’t think this is going to cannibalise audiences on our owned-and-operated platforms. TV is getting older, and YouTube is still the youngest social platform, and big-screen viewing on YouTube is skyrocketing and that is really important to us because people want to watch our content on the big screen.

“We view YouTube as a distribution platform in the same way that we view Sky Glass and other connected TV environments. This is a big pivot [to embrace long-form distribution on YouTube] but the YouTube strategy helps us reach younger audiences and super-charge our digital growth strategy and diversify revenues. It is a significant step in terms of delivering on our Future4 strategy [the high-level strategy C4 announced two years ago to prioritise streaming and grow digital’s share of revenue].”

The YouTube deal applies to the UK and Republic of Ireland and will see Channel 4 making an ever-growing catalogue of content available via the service – reaching around 500 hours next month and something like 1,000 hours by the end of this year. And this is part of a wider digital distribution focus that includes social platforms like Snap, Facebook and TikTok – with TikTok viewed as a natural home for 2–3-minute clips of the broadcaster’s output, which includes often irreverent comedy.

Asked why Channel 4 does not want to ‘force’ streaming viewers to come to its streaming service, All4, to see content [a theoretical possibility in the streaming space], Lewis declared: “We will fish where the fish are.”

He added: “We are doing both [D2C via owned-and-operated, and third-party streaming distribution partnerships]. We are trying to appeal to an audience that we are pretty confident are not going to come to All4. That is why we are going to start building a big presence on TikTok, because we recognised that the format, and the types of content you find on TikTok, won’t work as a 30-minute show [within All4].”

Lewis believes it is important for the Channel 4 brand to be seen, including by people that may not come to the owned-and-operated app. Focusing on TikTok again, he said: “We need to be on that platform and talking to that audience because we want 16-24 year-olds to have an empathy with Channel 4 as a brand, and a sense of what our brand means, and they are not going to get that if we just sit within our walled garden expecting them to come to us.”

Channel 4 views these third-party streaming services / social platforms, and also long-established partners like Sky, as key elements in the future digital distribution strategy. “We were a launch partner on Sky Glass,” Lewis pointed out, referring to Sky’s Pay TV operator created/branded retail Smart TV that ditches satellite tuners and relies on streaming. “We want to offer our service to users where they want to consume it. We see IP [digital/streaming] as a TV delivery that allows us to hold onto audiences, grow them where we can, and in particular grow younger audiences.”

Lewis emphasised how third-party content distribution complements the owned-and-operated environment – observing that when Channel 4 signs a syndication deal for Netflix to show archive programming, viewing of the more recent episodes increases on All4. He cited the [outrageous teen comedy] ‘The Inbetweeners’ as one example. “There is a halo effect.”

The deal with YouTube does not cover international markets but Channel 4 is looking at how it can increase non-UK revenues and it was clear that if the rights agreements could be agreed with the Indie producers (who retain their rights on Channel 4 broadcasted content) then a wider YouTube deal could at least be considered. The same applies for potential FAST channels, although Lewis acknowledged that the broadcaster would need to convince the programme rights holders that Channel 4 curation for international streaming was their best option.

One key point about the UK YouTube deal is that Channel 4 (whose 4Sales is one of the major UK television sales houses) will sell the advertising that appears. “We will have the relationship with the advertisers. We have great relationships with them already and now we can offer a reach extender into younger audiences off-platform.” This direct Channel 4 sell means advertises can also buy directly against content (rather than buying only against an audience).