Too FAST ….. no BRAKES

The FAST (Free Ad-Supported Streaming TV) industry is experiencing a surge reminiscent of the dotcom boom of the late 1990s. Much like the early internet companies, many FAST channels are focusing more on raising capital than on generating revenue. This shift away from traditional television’s legacy business models is driven by the allure of rapid growth and the promise of technological innovation.

However, this rush to raise funds is often based on inflated Key Performance Indicators (KPIs) and underwhelming performance metrics. As a result, significant amounts of investor money are flowing into adtech, cloud-based TV scheduling, and FAST channel agencies. Despite this influx, content owners and creators are not seeing a sustainable model emerge. They are losing substantial sums daily due to poorly executed strategies by partners more interested in fundraising than fulfilling their promises.

Investors are drawn to the sector’s potential, likening it to a modern gold rush, yet only about 10% of these businesses are projected to be sustainable in the long term. The ecosystem is bloated with intermediaries, and for the content side of the business—which only sees 10-20% of the gross revenues—to be sustainable, a significant reduction in the number of middlemen is necessary. Content creators bear two-thirds of the total costs, yet they receive a minimal portion of the revenue.

This imbalance raises concerns about the long-term viability of the FAST channels. Without a focus on creating value and a sustainable revenue model, the industry risks a collapse similar to the dotcom bubble burst. For the FAST industry to thrive, it must prioritize solid business practices over the frenzy of fundraising and ensure that content creators are adequately compensated for their contributions to the ecosystem.

Check out the Kapang Adx model that turns the traditional FAST model on its head and delivers great revenues to quality broadcasters and premium content libraries. Click Here

, Rathergood TV
fast makes me furious 1

Discover more from Rathergood TV

Subscribe to get the latest posts to your email.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top

Discover more from Rathergood TV

Subscribe now to keep reading and get access to the full archive.

Continue reading