Free Ad-Supported Streaming Television (FAST) channels have rapidly gained popularity, offering viewers a plethora of content without the need for a subscription. However, beneath the surface of this seemingly advantageous model lie several critical issues that affect content creators, advertisers, and viewers alike.
Non-Transparent Intermediary Commissions
One of the most significant challenges within the FAST channel ecosystem is the lack of transparency regarding intermediary commissions. Content creators often find themselves navigating a complex web of intermediaries, including platforms, ad-tech providers, and distribution partners. Each intermediary takes a cut of the revenue, often leaving content owners with less than 10% of the gross revenues. This opaque system makes it difficult for creators to understand where their earnings are going and how much they are truly making from their content.
Underperforming Ad-Tech provides low ad-fill without penalties
Another pressing issue is the performance of ad-tech within FAST channels. While the promise of targeted advertising is a major selling point, the reality often falls short. Many FAST channels struggle with ad insertion technology, leading to poor ad delivery and viewer experience. Issues such as ad load times, mismatched audio levels, and even complete ad failures are not uncommon. This not only frustrates viewers but also diminishes the potential revenue for content creators and advertisers.
Selling Dreams to Content Creators rather than a business model
FAST channels often market themselves as a golden opportunity for content creators to become broadcasters. However, the reality is far less glamorous. The promise of reaching a broad audience and generating significant revenue is often overshadowed by the harsh economic realities of the platform. Content creators are lured in with the dream of becoming major broadcasters, only to find that the majority of the revenue is siphoned off by intermediaries and platform fees.
Content Owners as the Major Losers in the commision deductions race
In this ecosystem, content owners are frequently the biggest losers. Despite providing the core value—content—they receive a disproportionately small share of the revenue. This imbalance is exacerbated by the high costs associated with maintaining and distributing content on these platforms. As a result, many content owners struggle to sustain their operations, let alone profit from their work.
Poor Viewer Experience for FAST Channel Audiences
Finally, the viewer experience on FAST channels often leaves much to be desired. While the allure of free content is strong, the reality of frequent ad interruptions, poor ad targeting, and technical glitches can lead to a frustrating viewing experience. Viewers who are accustomed to the seamless experience of subscription-based services may find FAST channels lacking in comparison.
Conclusion
While FAST channels offer a unique and potentially lucrative model for distributing content, the current system is fraught with challenges. From non-transparent intermediary commissions and underperforming ad-tech to the unrealistic promises made to content creators, there are significant issues that need to be addressed. Until these problems are resolved, content owners and viewers will continue to bear the brunt of the system’s shortcomings.
We developed a model which is show below very clearly on the deductions and revenues earned:
Amazing breakdown of the facts is shown at https://viewtvx.com/streaming-playbook/
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