Why the FAST Model is Failing Content Creators

Over the past few years, the FAST (Free Ad-Supported Streaming Television) channel approach has been a significant player in the monetization of episodic TV, film content, and linear TV broadcasting. While it provided a much-needed kickstart to the industry, it has become evident that the FAST model is biased towards technology companies and fails to meet the needs of content owners and audiences alike.

The Challenges of FAST Channels

FAST channels have relied heavily on traditional programmatic advertising, which has raised concerns about transparency and ROI tracking. Technology companies like Wurl and Amagi have championed the FAST model, but View TV, one of the pioneers of FAST channels, has conducted a thorough audit and found significant flaws. The ROI on content investments is poor, and the technology companies often reward themselves with high commissions, leaving broadcasters and content studios at a dead end. View TV reports that only 10% of gross ad-sales revenues reach content owners and creators, who bear two-thirds of the costs and have little control over their destiny.

The Rise of YouTube and the COMO View TV Model

View TV has observed that YouTube’s content monetization model (COMO) delivers significantly higher returns without the burden of technology fees. YouTube allows around a third of the revenues to reach the creators, making it a more attractive option for content creators, especially those producing high-cost content. However, this model does not work as well for major broadcasters and premium content studios.

Legacy FAST: A Failed Model

With YouTube surpassing FAST as an ad-funded monetization platform, View TV refers to the FAST model as “Legacy FAST,” acknowledging its failure to transform the industry for broadcasters and content studios. FAST became a cult-like phenomenon, attracting content creators and broadcasters with the allure of television but ultimately disappointing advertisers and audiences with unpolished formats and subpar viewing experiences.

The View TV Approach: Content Monetization and Transparency

View TV recognized the need for a new business model that prioritizes content monetization and stakeholder self-regulation. They have introduced the VIEW TV model, which stands for Video Initiative for Enhanced Worth. This model emphasizes the importance of content and aims to provide a transparent and balanced ecosystem for all stakeholders.

The VIEW TV Cloud Ecosystem

The VIEW TV Cloud platform offers a comprehensive solution that integrates advertisers, adtech, audiences, CTV platforms, content owners, broadcasters, and technology providers. Each party has a predetermined approach to their earnings, ensuring transparency and fairness. The platform provides live audience and revenue reports, 24/7 monitoring, and 28-day payments for content studios, acting as a YouTube or OnlyFans for content studios and linear broadcasters.

A Sustainable Business Model

In the VIEW TV model, content studios and broadcasters pay for storage, encoding, and CDN, while advertisers cover adtech fees. Platforms pay for the value added by the other parties. This approach ensures that two-thirds of gross revenues go to content owners and broadcasters, aligning with historic television models and allowing them to operate as they have for decades.

Empowering Content Studios

The VIEW TV approach also empowers content studios to greenlight projects without waiting for TV channel commissions. Agencies can fund and monetize content they are passionate about, fostering creativity and innovation.

Predictable Returns with Minutes Watched

A key metric in the VIEW TV model is “minutes watched,” which allows content partners to predict their returns and market their approach effectively. While VIEW TV cannot guarantee viewership, it provides a plan to turn minutes watched into dollars.

Conclusion

Although View TV has faced resistance from traditional parties benefiting from the Legacy FAST model, they remain convinced that content owners and broadcasters will realize the need for change. The VIEW TV model offers a sustainable and transparent solution for the future of content monetization, ensuring that content remains king.

For more information, contact the View TV team.