The world of television and streaming continues to evolve, and one of the most exciting trends in recent years is the rise of FAST (Free Ad-supported Streaming Television). These channels deliver linear TV programming to viewers over the internet at no cost, with revenue generated through advertisements. This model is growing in popularity as audiences seek more affordable and diverse content options. However, FAST channels face several challenges in terms of profitability, technical complexity and reaching mass audiences.
Satellite technology, particularly platforms like Eutelsat’s HOTBIRD, leveraging HbbTV technology (Hybrid Broadcast Broadband TV), offers a compelling solution to many of these issues by extending the reach of FAST channels to millions of homes. In this post, we’ll explore the unique advantages satellite offers to FAST channels and how it can overcome their most pressing challenges.
Satellite: A Game-Changer for FAST Channels
One of the most important benefits of satellite is its ability to immediately reach massive audiences. For example, Eutelsat’s HOTBIRD satellites have the potential to deliver content to over 160 million homes. This scale is unmatched, providing a significant opportunity for FAST channels to expand their audience base. By tapping into satellite distribution, these channels can broaden their reach and bring a wide variety of content to audiences who are eager for new programming.
Overcoming Commercial Challenges: Ad Monetization
Despite their potential, many FAST channels still face commercial challenges, particularly in emerging markets where ad revenue is often lower. Two significant hurdles are the low ad fill-rate (the percentage of ad inventory that is sold) and the technical complexity of maintaining operations. These issues can result in situations where operating costs outweigh revenues, threatening the sustainability of many channels.
To succeed, FAST channels must build robust and customized advertising strategies tailored to the specific markets they serve. Satellite’s reach can play a critical role in this process by bringing channels to audiences at scale, which can, in turn, attract more advertisers. Furthermore, as the industry evolves, satellite-integrated platforms offer the potential for more sophisticated ad-targeting technologies. For example, with CTV (Connected TV) penetration growing globally, there is an opportunity to serve targeted ads based on viewer behavior, increasing the value of ad impressions and boosting revenue in regions where it has traditionally been low.
Eutelsat and its technology partners are working to bridge the gap by leveraging new solutions that allow for more precise audience measurement, particularly on CTVs. These advancements enable advertisers to make better-informed decisions and increase ad effectiveness, creating a more sustainable revenue model for FAST channels operating via satellite.
Navigating Technical Complexities: Streamlining Operations
Launching and maintaining FAST channels requires navigating a complex technical landscape. From content delivery networks (CDNs) to ad servers and device compatibility, operating a FAST channel is no small feat. Each step of the process—from content encoding to delivery—must be optimized to ensure that viewers receive a seamless experience. Furthermore, the diversity of devices on which FAST content is consumed (ranging from CTVs to mobile devices) adds another layer of complexity.
Eutelsat and its technological partners can help streamline operations, making it easier for channels to focus on content and ad monetisation. In addition to broadcast services, satellite offers hybrid options, particularly for CTVs. With solutions like HbbTV, satellite can be combined with broadband to offer a rich viewing experience. Viewers can switch between linear TV and an on-demand library with the press of a button, creating a seamless user experience while giving broadcasters more control over how content is delivered. This solution was chosen by global AVOD and FAST channel programmer and distributor, wedotv, to enhance and extend their reach across Italy to a larger audience of connected TVs, as well as a new audience of non-connected TV viewers.
Expanding FAST Channels’ Reach and Maximizing Revenue Potential
The fragmented media landscape presents another challenge for FAST channels—attracting and retaining significant viewership. Even once the technical and commercial challenges are overcome, FAST channels operate in a highly competitive space, often struggling to build a loyal audience. Satellite can provide a solution by extending the reach of these channels to large, underserved markets that are eager to discover new content.
Eutelsat’s recent launch of three channels on HOTBIRD underscores the potential of satellite in supporting the growth of FAST channels. Together with partner MuxIP, a pioneer in next-generation media SaaS technologies for ad-supported streaming, they are bringing together a selection of global sports channels from FAST platforms around the world, via satellite to audiences in Europe, the Middle East and North Africa. The first channels launched are World Poker Tour, covering internationally televised events, with exclusive content, hosted commentary and analysis, Cricket Gold, drawing on 40 years of classic cricket action and Outdoor Channel, celebrating life in the great outdoors and the personalities that go with it. By reaching over 160 million homes, these channels are positioned to attract a diverse audience and maximize their monetization.
Conclusion: Satellite as the Key to FAST Channel Success
In a world where audience is highly fragmented, satellite platforms can be a powerful ally for FAST channels seeking to scale their operations and reach new markets. By leveraging the vast reach of platforms like HOTBIRD, channels can expand their audience base, overcome technical and commercial challenges, and build a more sustainable model for growth.
Eutelsat’s commitment to advancing satellite technology is helping broadcasters and content owners navigate the complexities of content distribution and monetization, ensuring that FAST channels can continue to thrive and deliver exciting new content to viewers around the globe.