By Cesar Sponchiado, CEO of Tunad
In recent months, we have seen a boom in the rollout of a free, ad-supported TV model known as FAST (Free Ad-Supported TV Streaming). In the US, Amazon launched the Fire TV Channels app this week, offering more than 400 FAST channels. In Brazil we are also seeing this trend grow, with Globo debuting the GE channel and another connected TV revenue channel. This phenomenon is a response to changing media consumption trends.
Conventional linear TV, transmitted via antennas, cables and satellites, is in decline. Audiences are migrating to the new OTT (Over-The-Top) model, where content is delivered directly to the consumer via internet streaming.
Video on demand (VOD) services like Netflix, HBO Max, Star+, Apple TV and others work on this online infrastructure and are successful. But audiences were asking for something that complemented this model: channels with a continuous flow of content with curated programming, just like linear TV today.
This trend is being driven by people becoming tired of looking for content to watch on video-on-demand platforms.
Another reason for the growth of FAST channel launches is the demand for free content. As subscriptions to various streaming platforms become more and more expensive, many consumers are looking for free alternatives. In Brazil, where not everyone has access to these platforms, the free TV model tends to take hold and progressively replace the open linear TV model.
Obstacles
However, Brazil’s Internet infrastructure is one of the biggest obstacles to FAST’s expansion. According to IBGE data from 2021, 90% of Brazilian households had access to the Internet, but limitations on the quality of the Internet connection still exist throughout the country. Between 2019 and 2021, the percentage of households equipped with internet in rural areas increased from 57.8% to 74.7%, while in urban areas it increased from 88.1% to 92.3%. The high cost of the internet and lack of access in rural and poorer regions are significant barriers. The arrival of 5G in the next few years could be the solution for spreading a quality internet network throughout the area – and this is a trend that could accelerate the adoption of the FAST model.
Conversely, the increase in smart TVs in homes is a positive indicator for FAST. In 2021, TV was the main Internet access device in 44.4% of households, overtaking computers for the first time (42.2%).
The FAST model is here to stay. With the combination of free content, relaxed viewing experience and demand for affordable alternatives, FAST positions itself as the natural evolution of free-to-air TV. In Brazil in particular, the growth potential is huge and improving the internet infrastructure will be key to success. We can expect many launches in the future and this model tends to be a success, offering a viable and attractive alternative for both consumers and advertisers. The reinvention of free streaming TV is here and FAST is leading the way.
The post New TV open? Free channel platforms gain strength first appeared on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
