Netflix pioneered the streaming service model by asking viewers a very simple question – do you want to watch entertainment whenever you want? The answer was a resounding yes, leading to one of the most popular and competitive markets today. Now, as competition ramps up, more and more viewers are opting for FAST plans with rigid, linear programming schedules instead.
Why FAST Appeals to Customers
FAST, or Free Ad-supported Streaming Television, is a hybrid between the on-demand streaming model and traditional, scheduled TV. It’s free, giving users access to ‘channels’ that feature shows and even movies tied to the service. The catch is that they have to sit through ads but, considering the whole service is free, it’s a small price to pay for many consumers.
People like getting things for free, or with something to sweeten the deal. We see this with trials, discounts and other rewards in e-commerce stores, streaming bundles and online casinos. For example, there’s a bustling industry of poker sites that use welcome bonuses or deposit matching to bring users on board. Once there, they can choose to stick around or leave once the bonuses expire.
This same process happens with Amazon Prime trials and other offers you can find online. FAST taps into this kind of marketing by offering a whole library of content for free. In return, viewers watch ads and give up on the ability to stream movies or shows on demand. That said, some FAST services also offer a limited selection of on-demand content that viewers can tap into.
The Great Re-Bundling
To understand why FAST is becoming more popular, it helps to have a crash course in what has been called the streaming wars. Throughout the 2010s, Netflix was relatively unrivalled as the #1 video-on-demand streaming service. Then, in 2019 and 2020, many high-profile competitors launched including Apple TV+, HBO’s Max and NBC’s Peacock.
Following this streaming boom, each service gathered its library of content, even recalling rights that had been licensed to Netflix in the past. These new services also started to produce their own movies and TV shows, a blueprint already established by Netflix and Amazon Prime Video. Some even developed their own niche, like how Apple TV+ has become the home of sci-fi adaptations. Much like Netflix in its early days, this led to a lot of great TV shows and movies that might not have been made in Hollywood before streaming came along.
However, each new streaming service puts pressure on the consumer, or at least the ones who want to subscribe to multiple services at once. Many pundits have quipped that they are reinventing the cable system, but now every channel costs money. In that climate, FAST services become a better alternative for many consumers.
Streamers seem to have recognised this, leading to something called the great re-bundling. This is a correction where streamers are either merging or bundling their content together, so only one payment is required to get the content from each service. By giving the viewer an alternative, FAST services like Roku, Rakuten TV, Tubi and Pluto TV are acting as a release valve in a saturated market.
Ultimately, it’s a problem that will solve itself if it hasn’t already, and to the benefit of the consumer. FAST channels will continue to gain prominence, and even leading services like Netflix have considered offering a FAST service in the future.
