Analysis: FAST to make up 20% of UK AVoD market
March 2, 2023
Findings released by Global Distributor Blue Ant International at London Screenings point to the significant growth in the UK’s emerging FAST arena over the next four years. Conducted by technology research firm Omdia as a follow-up to its recent global study on FAST, the UK-focused findings reveal that FAST will account for nearly 20 per cent of the UK’s $3 billion (€2.82bn) premium online ad-supported video market by 2027 (of which $500 million will be attributed to FAST).
That discovery points to FAST channel revenue in the UK quadrupling in the next four years, from the current $128 million earnings.
Growth numbers, previously released in the now-updated Omdia report, signalled the exponential audience adoption of FAST platforms and a growing need for producers and content owners around the world to navigate and access this emerging market.
“As a global distributor with a proven track record, our goal with these new findings is to demystify how FAST will perform outside of North America, specifically in the UK where free-to-air still reigns supreme,” said Lilla Hurst, Global Head of Acquisitions & Partnerships, Blue Ant International. “The updated data highlights FAST as an opportunity for creators to maximise the value of their IP in the UK via windowing strategies that will extend the life and revenue of their productions. We’re here to help them navigate through that journey.”
New FAST Trends Highlighted in the report:
- UK FAST channel revenue has already increased 180 times between 2019 and 2022
- FAST is a weekly habit for 15 per cent of UK online viewers
- The general movement of consumers from free TV towards free online video is a key driver of ad-based online video monetisation, as advertisers start to follow eyeballs from traditional TV towards digital and CTV environments
- In terms of content, in the US, local news channels have carved out an important niche on FAST.
- News was the top FAST channel genre is the US according to Amagi, with 33 per cent of hours of viewing, 8 per cent for movies and crime, 7 per cent for entertainment and 3 per cent for sports (Amagi Global FAST Report Edition #5)
- News is the leading genre in APAC (14 per cent), but in Europe, documentary channels are number one (15 per cent), while in Latin America, movie channels (21 per cent), according to Amagi
- New interviews with leaders in the FAST space reveal that anywhere from 50 to 500 hours of content are required to launch and keep programming fresh for audiences
- An increasing number of channels are FAST-native. These are typically focused around a niche programme genre or target audience
- FAST is often described as ‘lean-back’ entertainment designed for people wanting to relax with minimal effort. Audiences will not research a channel, so its purpose needs to be clear through its branding. The name of the channel often highlights its genre or niche