The Evolution of Content Monetization in Linear TV & VOD and the fall of FAST Channels

In the ever-evolving landscape of television broadcasting, the art of delivering episodic TV and film to audiences has always been fundamentally about content monetization. Whether through ad-funded models, subscription services, or pay-per-view options, the primary goal remains the same: to generate revenue from content.

Linear TV Broadcasting: The Traditional Model

Linear TV broadcasting, the traditional method of delivering content, relies heavily on scheduled programming. This model has been successful for decades, with networks like Hallmark and the BBC curating content to attract and retain viewers. The monetization strategies here are straightforward: advertisements during commercial breaks, subscription fees for premium channels, and pay-per-view for special events.

The Emergence of FAST Channels

In recent years, Free Ad-Supported Streaming Television (FAST) Channels have emerged as a popular alternative. These channels offer niche content through streaming platforms, monetizing through ad insertions in a playlisted format rather than traditional curated experiences. This model has gained traction due to its cost-effectiveness and the ability to reach specific audiences.

Challenges in the FAST Channel Ecosystem

Despite their advantages, FAST Channels face significant challenges. The lack of compliance and transparency has led to a “wild west” scenario in both the technology used for FAST Channel Playout and the advertising sales side of the industry. The reliance on programmatic trading with multiple intermediaries has further complicated the landscape, making it difficult for content owners to ensure fair monetization.

View TV’s Approach to Standardization

View TV has attempted to address these issues by introducing FAST 2.0 and FAST Plus, aiming to standardize processes and improve transparency. However, these efforts have been undermined by technology intermediaries who have copied and devalued the approach. Despite these setbacks, View TV remains committed to content monetization, leveraging their content library, creation capabilities, and broadcasting expertise.

The Role of YouTube and the COMO Playbook

Interestingly, View TV’s analysis revealed that YouTube could provide four times the revenue in content monetization without the associated technology fees. This insight led to the creation of the Content Monetization Streaming Playbook (COMO), designed to guide content owners towards more effective monetization strategies.

Kapang: A New Paradigm in Content Monetization

To further support content owners, View TV re-launched Kapang, a walled garden platform that mimics the YouTube ecosystem but targets premium content studios, linear broadcasters, and live event production companies. Kapang offers a more lucrative revenue model, with content providers retaining a larger share of ad sales and additional opportunities for sponsorships and product placements.

The Future of Content Monetization

While FAST Channels represented a significant step forward, they are now seen as a legacy model. Platforms like Kapang, powered by View TV Cloud, offer a more efficient and profitable alternative. With features like live revenue dashboards, 100% fill rates, 28-day payment terms, and comprehensive audience reporting, Kapang promises to deliver significantly higher revenues at a fraction of the cost.

Industry Adoption of the COMO Approach

View TV’s efforts have not gone unnoticed. Several CTV and legacy platforms are now integrating the COMO approach by integrated the white-labelled View TV Cloud, recognizing its potential to enhance monetization and reduce costs. By adopting these new standards, content providers can offer a broadcast-grade experience while earning more revenue.

Conclusion

The landscape of content monetization is rapidly evolving. While FAST Channels provided a valuable stepping stone, the future lies in more sophisticated and transparent models like COMO adopted by Kapang. As the industry continues to adapt, platforms that prioritize ethical relationships between audiences, content providers, and advertisers will lead the way in the next era of television broadcasting.

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