The Future of CTV – FAST Channels and AVOD will only survive on integrated platforms that mirror the success of YouTube, Spotify and Twitch

The future of CTV – In the ever-evolving realm of television, the future is undeniably platform-driven, promising ubiquitous accessibility for viewers worldwide. Connected TV (CTV) stands at the forefront of this transformation, poised to revolutionize the way linear broadcasters, video content libraries, and creators engage with audiences. Drawing inspiration from the triumphs of industry giants like Netflix, YouTube, Twitch, Spotify, and Audible, the future of CTV lies in the convergence of consumers, advertisers, and creators within an integrated platform ecosystem.

However, the current CTV landscape is marked by fragmentation and revenue-sharing complexities. Platforms such as Samsung Plus and Vizio, among others, have become indispensable distribution endpoints for video content and FAST channels. Yet, the exorbitant technology fees and hefty revenue shares imposed by these platforms often leave broadcasters grappling with dwindling profits. Despite opening avenues for content libraries to bypass traditional broadcasters, these platforms tend to favor already-aired or dated content, undermining the viability of investment in newer, high-quality offerings.

YouTube is better than FAST Platform distribution in a high percentage of cases

A recent study conducted by View TV sheds light on the economic disparities within the CTV market. While placing AVOD content on various FAST platforms incurs significant costs, the returns pale in comparison to those generated on YouTube. Notably, YouTube’s revenue model, albeit favoring channel operators with a 51/49 split, offers a more lucrative alternative, even when considering the lower advertising rates attributed to user-generated content assumptions.

So, what constitutes the perfect Connected TV Platform?

So, what constitutes the perfect Connected TV Platform? At its core, such a platform must offer a diverse array of content models under one roof, eliminating the need for viewers to hop between platforms for varied entertainment options. Crucially, the platform’s revenue model should prioritize sustainability for content creators and broadcasters, enabling them to continue producing and broadcasting the latest content seamlessly.

View TV’s meticulous review of the existing CTV market unveils a landscape rife with inefficiencies and inequities. Despite pioneering the creation of AVOD libraries and original FAST channels, View TV encountered formidable roadblocks with platforms like Pluto TV, Samsung Plus, and Vizio. The platform’s stringent selection criteria and hefty revenue shares hindered the proliferation of premium content, ultimately stifling consumer engagement.

Are audiences engaging with FAST in their droves?

Amidst these challenges, the paramount importance of audience satisfaction cannot be overstated. As consumer preferences evolve, demand for new, high-quality content accessible across all platforms surges. However, existing FAST channels struggle to attract sizable audiences due to inadequate curation, metadata optimization, and marketing efforts. Pluto TV’s meager 1% engagement rate in the US underscores the urgency for platforms to prioritize audience-centric innovation and premium content engagement.

The future of television hinges on the seamless integration of premium content, equitable revenue-sharing mechanisms, and audience-centric innovation. As View TV advocates for a paradigm shift towards exclusive platform-driven solutions, the onus lies on industry stakeholders to pave the way for a vibrant, inclusive CTV landscape where creativity thrives and audiences rejoice.

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