{"id":4034,"date":"2023-04-19T21:45:48","date_gmt":"2023-04-20T01:45:48","guid":{"rendered":"https:\/\/vpms1.humber.smartmanagedservers.com\/scribemag\/?p=4034"},"modified":"2023-04-26T15:35:48","modified_gmt":"2023-04-26T19:35:48","slug":"tv-is-changing-f-a-s-t","status":"publish","type":"post","link":"https:\/\/humberjournalism.com\/scribemag\/lifestyle\/tv-is-changing-f-a-s-t\/","title":{"rendered":"TV is changing F.A.S.T."},"content":{"rendered":"\n

By Andre La Rosa Rodriguez<\/h3>\n\n\n\n

TV analyst Alan Wolk came across free ad-supported streaming television (FAST) in 2018<\/a> as it was expanding into Europe. While skeptical of how much it would grow, he knew the type of service needed to be taken as a serious contender alongside Netflix.<\/p>\n\n\n\n

\u201cAll these big streaming services have global ambitions. Netflix is in [almost] every country in the world,\u201d Wolk said. \u201cBut once you get out of the U.S., Canada, Japan, Europe, people don\u2019t have money for subscription TV services.\u201d<\/p>\n\n\n\n

\u201cFree was going to have to be the way for the rest of the world.\u201d<\/p>\n\n\n\n

FAST services offer their content like traditional cable TV with commercials and linear channels that show programming from different networks. The trade-off is that it\u2019s free and channels can stick to one program, meaning a channel named Doctor Who will play Doctor Who episodes 24\/7. Subscription video-on-demand (SVOD) streaming services like HBO Max and Netflix have shown interest<\/a> in offering FAST as they chase further expansion. Amazon Prime has already set up their own free streaming service as Amazon Freevee.<\/p>\n\n\n\n

\u2018A tiered pricing system\u2019<\/strong><\/p>\n\n\n\n

Canada welcomed Pluto TV<\/a>, a FAST service owned by Paramount, in December 2022 which is the latest free streamer that is now available in the country. Pluto TV is the third service that Paramount has made available to Canadians after launching Paramount+ as both an SVOD and a less expensive commercial-filled version called ad-supported video-on-demand (AVOD).<\/p>\n\n\n\n

If you give me free content, I’ll watch a few ads.<\/p>Alan Wolk<\/cite><\/blockquote><\/figure>\n\n\n\n

A 2022 TVRev report, co-created by Wolk, highlighted Paramount as an example of a forming \u201cthree-tier system\u201d where a company offers SVOD, AVOD, and FAST. Wolk noted that the majority of streaming companies will have to eventually offer all three types of service if they want to be able to keep up with the industry. The report labeled Pluto TV as the largest FAST platform currently offered globally. Because of Paramount’s success, he\u2019s sure that it\u2019s only \u201ca matter of time\u201d before Netflix and Disney+ launch their own free channels.<\/p>\n\n\n\n

Both companies have recently launched AVODs to create cheaper options for users as their subscription prices continue to grow because producing more content for their library is becoming more expensive. Netflix has hiked up their subscription prices six times<\/a> since their $8 plan at launch in 2008. They have their SVOD plans subdivided into three categories \u2014 basic, standard, and premium. As of April 2023, the Canadian premium Netflix monthly plan, the most expensive tier, is $20.99.<\/p>\n\n\n\n

Brett Caraway, an associate professor in the Institute of Communication, Culture, Information, & Technology at the University of Toronto, called the variety of services and subdivisions in one company as hybrids and highlighted that FAST is the latest addition to the tier system that\u2019s taking shape amongst streaming services.<\/p>\n\n\n\n

\u201cIt\u2019s based on the ability and willingness to pay,\u201d he said. \u201cIt allows [companies] to extract more value out of people with more income, while still retaining the people with less income by offering them a cost-conscious pricing mechanism.\u201d<\/p>\n\n\n\n

He added that it’s also a way to counter the growing frustration of \u201csubscription stacking\u201d since content is getting increasingly scattered across multiple services. Star Wars and Marvel franchises are only on Disney+. Friends and HBO shows are found in Crave. Stranger Things is exclusive to Netflix. A Hub Entertainment analysis found that last year over half of streamers in the U.S. were subscribed to at least three of the top five SVOD companies \u2014 Hulu, Amazon, Netflix, HBO Max, and Disney+.<\/p>\n\n\n\n

\u201cAll of a sudden you find you\u2019re paying subscription fees across all of these different services and it gets expensive. Really expensive. Maybe even more expensive than what it was when we were just paying for cable,\u201d Caraway said.<\/p>\n\n\n\n

\u201cWhat we\u2019re seeing is a realization that we need a tiered pricing system,\u201d he said.<\/p>\n\n\n\n

A 2023 report by Roku Canada, a video streaming service, found that about 57 per cent of streamers are feeling more economic pressures than in previous years with inflation, and cost of living. Roku found that these factors are pushing users to pay more attention to what each TV streaming service has to offer and whether that justifies the monthly price. <\/p>\n\n\n\n

Caraway highlighted that FAST services will attract the \u201cprice-conscious\u201d and the \u201ccasual\u201d viewers which is why there is a tolerance to commercials.<\/p>\n\n\n\n

\u2018There\u2019s a comfort factor to it\u2019<\/strong><\/p>\n\n\n\n

While the majority of the TV industry shifted to ad-free services in the 2010\u2019s, Wolk noted that not everything needs to be commercial free. He divided TV watching into a category of content where people don\u2019t want to be disturbed, and the content where there will be less attentive viewing or is placed as background noise.<\/p>\n\n\n\n

Wolk said that the majority of content in FAST services take advantage of the less attentive viewing experience. The majority of channels include news, reruns of older shows, and movies.<\/p>\n\n\n\n

Tubi, another streaming platform known for its FAST service, reached 64 million subscribers<\/a> in January 2023. They doubled the number of users within two years. It took them six years to get the first 30 million. David Soberman, a marketing professor at the University of Toronto, said that the growing number of viewers is only one of several factors that needs to be considered when looking at the growth in FAST.<\/p>\n\n\n\n

\u201cAnytime you\u2019re running a business there\u2019s not an absolute answer, right? So [it] sounds like a lot of subscribers, but that doesn\u2019t mean very much. What\u2019s important is the percentage of viewing time spent on FAST,\u201d he said.<\/p>\n\n\n\n

A 2023 Tubi insights report said that average viewing time rose by 27 per cent in 2021 and pointed to their growing library as a factor. As the content in FAST services diversifies and expands, Tubi has determined that one in three streamers will want to cut back on their monthly subscription fees.<\/p>\n\n\n\n

I\u2019ve gotten so used to advertising-free viewing that it\u2019s hard for me to go back.<\/p>Brett Caraway<\/cite><\/blockquote><\/figure>\n\n\n\n

Pluto TV\u2019s expansion to Canada was launched with an additional 30 Canadian-based channels after striking a deal with Corus Entertainment. Some of those include local news channels like Global News, kid-friendly channels like Franklin, and serial show channels like Degrassi. Wolk highlighted that FAST streaming libraries will aim for casual content.<\/p>\n\n\n\n

\u201cThis is free, it\u2019s easy, no commitment, no one is asking for my email, and there\u2019s a comfort factor to it,\u201d he said. \u201cIt\u2019s a mindless thing I can have on. I know the characters, I\u2019ve probably seen this episode three times, I know what\u2019s going to happen. It feels comforting.\u201d<\/p>\n\n\n\n

\u201cIf you give me free content, I’ll watch a few ads. That gives me time to run to the kitchen, to run to the bathroom, whatever I need to do,\u201d Wolk said.<\/p>\n\n\n\n

\u2018It\u2019s an evolving ecosystem\u2019<\/strong><\/p>\n\n\n\n

Despite the growth in FAST, Wolk predicted it will be another five years before the majority of the TV industry fully accepts free channels as another section of streaming.<\/p>\n\n\n\n

\u201cIt\u2019s been a journey watching the industry change, but really slowly,\u201d he said. \u201cThere\u2019s a lot of moving pieces in TV.\u201d<\/p>\n\n\n\n

He noted that \u201cit\u2019s an evolving ecosystem\u201d that is halfway through the current transformation. The other half will rely on the continued expansion of the channels, how companies view the service in comparison to other types of streaming, and most importantly what audiences think of FAST.<\/p>\n\n\n\n

Soberman stressed that as of now the appeal of ad-free streaming is still stronger than whatever FAST is offering. He knows people who have gone to \u201ccheck out\u201d the service, but still feel that SVOD is more suitable for them.<\/p>\n\n\n\n

\u201cWill these services that are free with advertising carve out a portion of the market, the answer is yes,\u201d Soberman said. \u201cWill it be higher than 25 or 30 per cent, I don’t think so because I think one of the reasons that people are so addicted to streaming is because they don\u2019t have to watch advertising.\u201d<\/p>\n\n\n\n

Caraway echoed that ad-free is a custom that most consumers have gotten used to as part of their tv experience. Caraway is currently subscribed to four SVOD streaming services. He has only taken \u201ca peek\u201d at FAST streaming.<\/p>\n\n\n\n

\u201cI\u2019ve gotten so used to advertising-free viewing that it\u2019s hard for me to go back ,\u201d he said. \u201cWhen the commercials are interjected into the content that I\u2019m after it feels so much more intrusive now than it used to 20 years ago when I was more acclimated to listening to advertisements.\u201d<\/p>\n\n\n\n

However, Wolk highlighted that commercials in FAST will be more targeted to its viewers and be shorter than what is shown on cable TV. A 2022 TVRev advertising report predicts that cable networks will continue to lose revenue made from advertisements because viewership will decrease each passing year and that the shift away from cable is inevitable.<\/p>\n\n\n\n

\u201cEventually it will no longer be profitable for the cable companies to strike deals with cable networks,\u201d Wolk said. \u201cAt some point [cable companies] are going to say \u2018yeah, it\u2019s not worth it anymore\u2019.\u201d<\/p>\n\n\n\n

But he stressed that the changes in the industry are as slow and as small as a \u201cdrip\u201d of water and said that \u201ccord-cutting\u201d and the full switch to streaming will be a long process. His interest remained in FAST as it follows in the same footsteps as cable TV did during its growth in popularity many years ago.<\/p>\n\n\n\n

\u201c[Cable TV] grew up,\u201d he said. \u201cYou\u2019re starting to see that with FAST now. That they\u2019re growing up and becoming better versions of what they were.\u201d.<\/p>\n\n\n\n

Wolk predicted that by 2027 the majority of TV viewership will be in streaming. That SVOD will be viewed as the new primetime, and FAST will be viewed as the new cable.<\/p>\n","protected":false},"excerpt":{"rendered":"

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