target audience: TECH BUYER Publication date: Aug 2023 - Document type: IDC Perspective - Doc Document number: # US51124523
Free Ad–Supported Television Impact in 2023
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Abstract
This IDC Perspective discusses the impact of FAST in 2023. It won't be long before technologies like generative AI and data analytics applied to the content creation, channel assembly, management, and improvement of FAST take hold, taking it to an even greater growth rate with the goal of profitability. That said, there is enough interest in FAST to a new diverse and global consumer connected to the internet that are either "cord-cutters" or "cord nevers" that prefer it to a subscription service. This is clear by its rapid adoption and share capture in the United States and its increasing demand globally. The question now is about making sure that measurement, ROI, and profitability drive both existing and new streaming platforms that are taking advantage of FAST. The UX and CTV OS implementations will help this by making FAST seem like traditional TV with electronic programming guides (EPG) with easy content discovery, personalization, and advertising that is targeted and actionable. This, along with interactive and social services integrated into the FAST-streaming platform, will add value, differentiation, and ease-of-use adding the "stickiness" factor further separating them from traditional television.
"Media customers are at an inflexion point driven by key technology and market trends, new cloud-based products and services offerings, and general discussions about the overall health of the M&E industry," says Alex Holtz, research director, Worldwide Media and Entertainment Digital Strategies at IDC. "Over-the-top (OTT) distribution, free ad–supported streaming television (FAST) cloud channel playout, and direct-to-consumer (DTC) business models are popular with the adoption of cloud services for M&E. Technology vendors are addressing these challenges with new offerings of native cloud solutions for parts or all the business cycle, including production, distribution, and monetization. Shared risk, strategic partnership, and alignment of both engineering principles and road maps are the keys to success."