The FAST channel race is on

With all the recent activity around ad-supported streamers, what's the draw for both audiences and advertisers?

Free ad-supported streaming television (or FAST) channels are quickly becoming a big part of the media landscape in Canada.

Two launched just within the last week. CBC News Explore not only a simulcast of flagship shows like The National, Marketplace and The Fifth Estate, it also features a roster of original news-focused programing created just for the platform, alongside reported stories from CBC stations across Canada. Paramount’s PlutoTV – already one of the most popular FAST services in the U.S. – arrived in Canada on Thursday, thanks to a partnership with Corus Entertainment.

Those join the FAST channels that have already gotten up and running. Blue Ant Media has been expanding access to its roster of FAST channels, which in Canada currently include home renovation channel Homeful, paranormal-themed HauntTV and true crime channel CrimeTime. Tech companies that provide the TVs and hardware many people use to watch FAST channels, such as Samsung and Roku, have had FAST channels for years.

Although Bell Media hasn’t released a FAST channel as yet, a spokesperson told MiC that Bell Media is always assessing opportunities to maximize audience reach, which includes participation in the FAST channel environment.

FAST is not to be confused with AVOD services; whereas streamers like CBC Gem, Tubi and – most recently – ad-supported subscription tiers from Netflix and Disney+ are a fully on-demand experience, FAST channels organize their programming into curated lineups, similar to a traditional network’s broadcast schedule. And Greg McLelland, Corus’ CRO, says that is one reason FAST is becoming so popular around the world: it’s a lean-back experience.

“People can turn on a FAST app and you’re right there. All the programming is already done for you and there are hundreds of channels to choose from,” McLelland says, adding that adoption of new technology has helped motivate the growth. “Connected TV (CTV) is a very big part of it. People are more comfortable using CTV and downloading apps to CTV than they were a few years ago.”

Another benefit of FAST from the consumer point of view, he says, is there’s no sign up. It’s totally frictionless, and viewers can begin watching as soon as they download the app.

FAST channels are also an answer to advertisers looking for more digital advertising options, particularly those skewing to younger demos, says McLelland, because there are a lot of 18-to-34-year-olds in the FAST environment.

“In addition, FAST channels are completely brand safe,” McLelland says. “All the content usually comes out of big studios where it’s great content and totally safe to watch.”

Program discoverability is also a benefit of FAST since viewers choose shows from a menu somewhat like a cable TV directory, something they’re already familiar.

But beyond the product itself, economics will likely also be a driving force behind the growth of FAST. With the possibility of an economic downturn on the horizon, many Canadians are looking for ways to cut costs and are thinking of eliminating some of the SVOD services they pay for. FAST channels give them a way to access a lot of content and lower home entertainment costs at the same time.

Christina Summers, country manager for Canada at Roku, says FAST channels offering a free alternative to both SVOD and cable is more important than ever with the shift in the economy that’s taking place, because it allows people to switch their habits and behaviours and reduce their entertainment costs – in return for watching light advertising.

“We are running about half the ad load of traditional linear television,” Summers says, which – despite less inventory to go around – has its advantages for advertisers. “They’re going to stand out within a less cluttered ad environment while still being associated with top tier quality content. From consumers we see that there’s higher engagement and satisfaction – they get to enjoy more for less. For advertisers, they get to have their ads in a less cluttered environment.”

She adds that within the CTV space, different types of ad formats and cross-screen targeting are available because it’s digital. This includes layering interactivity into standard video creative formats to allow users to take an action, whether that’s asking for more information through a QR code or using a remote.

Dave Pauk, sales director for Samsung Ads Canada, says that even though revenue growth of all advertising-based streamers (both FAST and AVOD) has already surpassed that of subscription-based streaming (SVOD), SVOD will almost certainly continue to hold a greater market share. But on the other hand, that growth means ad-supported services will still be important to anyone looking for comprehensive reach.

“More consumers will resort to free, advertising-based video on demand solutions, and FAST channels as they tighten their purse strings in the face of rising inflation and recession fears,” he says. “With the emergence of streaming, the media landscape is changing, and we can expect to see legacy corporations with significant budgets competing to outwit, outplay and outlast one another.”