How are FAST Channels making content companies bankrupt….?

FAST Channels Are Driving Content Companies to the Brink – Picture this: you’re a content company, cruising along in your reliable old sedan, making decent money from your shows and movies. Then, along comes the shiny new sports car of the streaming world – FAST Channels. They promise you the world: more viewers, more ad revenue, and a slice of the digital pie. But before you know it, you’re skidding off the road and heading straight for bankruptcy.

So, how did we get here? Well, FAST Channels – that’s Free Ad-Supported Streaming Television for the uninitiated – seemed like a brilliant idea at first. They offered a way to monetize content without the pesky subscription fees. But here’s the rub: the ad tech companies running these channels are raking in the dollars, while content creators are left counting pennies.

Imagine you’re at a posh dinner party. The ad tech companies are the hosts, serving up lavish dishes and fine wine. Meanwhile, the content companies are the waitstaff, scraping together tips just to get by. It’s a raw deal, and it’s driving many content creators to the brink.

The problem lies in the so-called “tech tax.” This is the hefty cut that ad tech companies take from the ad revenue before it ever reaches the content creators. In some cases, this can be as much as 90% of the earnings. It’s like being promised a gourmet meal, only to be handed a stale sandwich.

And let’s not forget the perception problem. FAST Channels have become synonymous with low-quality, throwaway content. Viewers aren’t flocking to these channels for the latest blockbuster or critically acclaimed series. They’re tuning in for reruns and reality TV. This tarnishes the brand of any content company associated with FAST Channels, making it even harder to attract premium advertisers and viewers.

So, what’s the solution? Some companies, like Kapang, are ditching the FAST terminology altogether. They’re focusing on “streaming” as a way to attract higher-quality content and more discerning viewers. It’s a smart move, akin to trading in that clunky old sedan for a sleek, modern electric car.

In the end, the lesson is clear: if you’re a content company, beware the siren call of FAST Channels. They might promise you the world, but more often than not, they’ll leave you stranded on the side of the road, wondering where it all went wrong.