U.S. FAST market to reach $4.1 billion in 2023Thursday, August 26th, 2021
US FAST market to reach $4.1 billion in 2023
- The FAST industry will reach 216 million monthly active users (MAUs) in 2023
SUNNYVALE, Calif. — According to new research from nScreenMedia sponsored by Verizon Media, the US free ad-supported streaming TV (FAST) industry is locked into a virtuous cycle. Expanding audiences attract more and better content, attracting more advertisers, and driving up ad values. And, in turn, the growth in content attracts more viewers. This market dynamic will drive ad revenue earned by virtual linear (vLinear) channels from $2.1 billion in 2021 to $4.1 billion in 2023.
The new free white paper Getting FAST: The explosive vLinear market and why content providers need to jump in explains that streamers, hardware manufacturers, and content providers are now fully engaged in the FAST market.
Smart TV manufacturers have FAST services built into their devices. They are launching new vLinear channels, and some are even re-orienting their business around them.
Content providers have recognized the value of vLinear delivery. They understand the channels can provide strong monetization and promotional opportunities for new and library shows and movies.
As viewers migrate more of their viewing time to streaming, linear TV channels remain a popular option. Interest in vLinear channels has helped FAST market leader Pluto TV more than double its monthly active users over the last two years.
The white paper details the state of the FAST industry today. Some of the findings revealed by the paper include:
- Ads occupy between 13 and 14 minutes per hour
- Ad breaks occurred every 6 to 9 minutes, with 3 to 6 ads per break
- FAST viewers report spending as much as 20 minutes per day with the services.
The white paper’s author, Colin Dixon, Founder and Chief Analyst at nScreenMedia, commented: “There was a time when many forecast the death of linear TV viewing. However, it is now clear that the format continues to deliver value to viewers. The FAST market has just begun a long period of rapid expansion.”
The paper’s findings support the investment in the FAST market made by video platform providers, including the white paper’s sponsor Verizon Media: “At Verizon Media, we’ve witnessed the evolution of OTT and the rapid adoption of FAST platforms as our customers look to increase their audience reach and provide greater pricing flexibility to consumers,” said Ariff Sidi, GM and Chief Product Officer, Verizon Media Platform. “We are encouraged by nScreenMedia’s market validation as we continue to deliver the industry’s leading platform for both subscription and ad supported video consumption.”