The Difficult Truth About FAST Channels & AVOD that people are choosing not to accept

Right, let’s get one thing straight. The world of Free Ad-Supported Streaming Television (FAST) is a bit like a flashy sports car with a dodgy engine. It looks great on the outside, but under the hood, it’s a mess. Many have raised money, invested time, and poured resources into platforms like Amagi, Wurl, and Ottera, only to find out that the whole thing is a bit of a failure.

The Harsh Reality of FAST Channel Monetization

The Programmatic Maze for Ad-funded Content & Broadcasters

Multiple Commissions in Ad-Funded Monetization: Imagine you’re driving down a motorway, and every few miles, there’s a toll booth. That’s what the journey from ad sale to delivery is like in the FAST world. Advertisers post their campaigns to DSPs, which then connect to a convoluted matrix of SSPs. Each SSP, using different technologies, adds its own commission, often 10-30% at each stage. This results in content owners receiving less than 10% of gross revenues. It’s daylight robbery.

SaaS Fees in Ad-Funded Monetization: And if that wasn’t bad enough, SaaS fees are charged for multiple ad trades within the same ad-pod position, further reducing the net revenue for content owners. It’s like paying for the same pint of beer three times over.

Disparity in Earnings Ad-funded Content & Broadcasters

Ad-Tech Companies vs. Content Studios in Ad-Funded Monetization: While ad-tech companies boast billion-dollar valuations, content studios are left struggling to keep the lights on. This disparity highlights the inefficiency and inequity in the current ad-funded positioning. It’s like the rich getting richer while the poor get poorer.

The YouTube Comparison Ad-funded Content & Broadcasters

Higher Revenue Shares for Content Studios and Broadcasters

YouTube’s Content Monetization Model: On YouTube, creators receive about 55% of ad revenue, while YouTube retains 45%. Despite the lower initial ad values compared to CTV, this streamlined process allows YouTube to offer higher revenues to creators. It’s not perfect, but it’s a damn sight better than the FAST model.

Content Worth: Although the content on YouTube might not always be premium, the platform’s efficiency in ad sales and delivery means that creators often earn more than they would through FAST channels. It’s like comparing a reliable family car to a flashy sports car that breaks down every five minutes.

Content Discovery Issues for Ad-funded Monetization

Advertiser Concerns: Advertisers on YouTube are wary of their ads appearing next to user-generated content, which can be unpredictable in quality. This affects the overall ad rates and the willingness of advertisers to invest heavily in premium content. It’s a bit like playing Russian roulette with your brand’s reputation.

Enter Kapang AdX: A Revolutionary Solution

Integrated Platform for Ad-funeed Content Monetization and Broadcaster Earnings

Higher Revenue Share: Kapang AdX offers a platform that returns more than two-thirds of ad revenues to broadcasters and content owners as net revenues. This is achieved by eliminating multiple layers of ad-tech. It’s like stripping down a car to its essentials for maximum performance.

Single-Cost Model: Kapang AdX includes the SSP, audience platform, CDN, and reporting technologies, all for less than one-third of gross ad revenues. This is a stark contrast to the current model, where content owners receive only one-tenth. It’s a game-changer.

Broad Support for Ad-supported Content Monetization

Diverse Content: Kapang AdX supports a wide range of content, including podcasts, live event streams, premium linear TV broadcasts, content archives, and even traffic and surf web cameras. It’s like a Swiss Army knife for content monetization.

Revenue Comparison of FAST, YouTube & Kapang

FAST vs. YouTube vs. Kapang AdX: Traditional FAST channels provide 10% of gross revenues, YouTube offers 30%, while Kapang AdX delivers more than 66%. This significant increase in revenue makes Kapang AdX a game-changer for content owners.

The Difficult Truth for FAST Channels & ad-funded Content Monetization

The difficult truth for those invested in the FAST channel industry is that the current model is deeply flawed. The multiple layers of ad-tech and commissions mean that content owners are left with mere scraps. In contrast, platforms like YouTube, despite their own challenges, offer a more efficient and profitable model.

Kapang AdX is poised to revolutionize the industry by providing a more equitable and efficient ad-funded streaming model. By removing unnecessary layers and commissions, it ensures that content owners and broadcasters receive a fair share of the revenues. This innovative approach not only supports the financial sustainability of content creators but also enhances the viewing experience for audiences.

It’s time for a wake-up call. The future of content monetization lies in streamlined, transparent, and fair models like Kapang AdX. Investors, take note. If it doesn’t work, change it. Stop being hung up on the difficult truth and embrace the future.

Email stephan@viewtvx.com or don.cardone@viewtvx.com and get monetizing