Ladies and gentlemen, let’s dive into the world of Free Ad-Supported Streaming Television (FAST) with the same intensity we bring to a nail-biting sports final. The FAST industry, much like a promising rookie, has shown flashes of brilliance but is plagued by fundamental flaws. For sports rights owners and live event streamers, the reality is a bit like watching your team dominate possession but fail to score. The ad-tech world is taking almost half of the possible content earnings due to multiple sales commissions within an SSP and SaaS fees for multiple ad-trades for the same ad-pod position. It’s time to blow the whistle on these inefficiencies and explore a game-changing solution: Kapang AdX.
The Programmatic Maze for Sports Broadcasting and Sports Archives
Multiple Commissions for Sports Broadcasters
Ad Sale to Delivery: Imagine a football match where every pass incurs a fee. Advertisers post their campaigns to DSPs, which then connect to a 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 like playing a match where the referees take a cut of every goal scored.
SaaS Fees for Sports Broadcasters
Ad Trades: SaaS fees are charged for multiple ad trades within the same ad-pod position, further reducing the net revenue for content owners. It’s akin to paying for the same ticket multiple times just to watch one game.
Disparity in Earnings for Sports Broadcasters
Ad-Tech Companies vs. Content Studios: 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 top clubs getting richer while grassroots football withers away.
The YouTube Comparison for Sports Broadcasters
Higher Revenue Share: YouTube’s 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: Efficiency in Ad Sales: 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 well-oiled team to one bogged down by bureaucracy.
Content Discovery Issues for Sports Broadcasters
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 for Sports Broadcasters
Integrated Platform for Sports Broadcasters
- 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 Sports Broadcasters
- 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 for Sports Broadcasters
- 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
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 – Don.cardone@viewtvx.com
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