The FAST Frontier: How Free Ad-Supported Platforms Are Transforming Streaming and Cable Television

As streaming fatigue sets in, consumers increasingly opt for FAST (Free Ad-Supported Television) platforms, with traditional cable providers feeling the pinch and subscription services fearing a subscriber exodus.

Once considered fringe players, FAST platforms capture significant market share with their ad-supported, cost-free models, while SVOD giants drive premium content strategies and global expansion efforts.

For media executives and distributors, the shifting numbers tell a compelling story of disruption, adaptation, and the strategic recalibration of both streaming and cable models.

---

The Rise of FAST: Samsung TV Plus Leads the Charge

Samsung TV Plus, Samsung’s native FAST platform, has witnessed explosive growth, reporting 88 million monthly active users globally. This number surpasses that of Tubi, a leading FAST platform with “just under” 80 million users as of Q1 2024. Samsung’s dominance in the smart TV market, with 26.6 million U.S. households owning Samsung smart TVs, reinforces its competitive advantage. The platform’s user growth in September 2024 to 0.61% of U.S. TV viewing, a notable increase from the previous two months, signals rising engagement potential.

Although Samsung’s FAST platform does not yet match Tubi’s or The Roku Channel’s viewing time (at 1.7% and 1.6%, respectively), its broad reach and pre-installed app position Samsung TV Plus for continued growth, particularly as more households adopt smart TVs.

According to recent research, 79% of U.S. homes owned a smart TV in early 2024, with 62% of users streaming weekly. This trend suggests Samsung TV Plus and other integrated FAST services are well-positioned to capture consumer attention, especially as streaming fatigue pushes viewers toward free options.

---

FAST’s Value Proposition: An Answer to Subscription Fatigue

The appeal of FAST channels is rooted in their no-cost model, contrasting with the ad-supported tiers of SVOD services like Netflix and Disney+, which, while less costly than their ad-free options, still require monthly payments. Rising subscription fees across premium SVOD platforms have increased consumer churn as users seek cost-effective alternatives.

This financial belt-tightening is proving favorable to FAST platforms like Tubi, which saw a 43% increase in viewership year-over-year as of May 2023, and The Roku Channel, which grew by 36%.

FAST services also capitalize on content licensing, often streaming older series and popular movies — assets once central to SVOD’s appeal before the shift to high-cost original programming.

Platforms like Tubi and Roku have built massive content libraries that cater to the diverse tastes of viewers unwilling to commit to yet another subscription. With ad-supported viewing as the price of entry, these services deliver substantial value, reshaping the competitive landscape by appealing to cost-sensitive consumers and driving engagement through sheer content volume.

---

SVOD Expansion and Ad-Supported Models: International Variability and Strategic Adjustments

SVOD giants, meanwhile, continue to refine their global strategy through selective adoption of ad-supported models. Netflix, for instance, only offers its ad-supported tier in 12 of its 190+ countries, focusing on markets where consumer demand for ad-free experiences is balanced by higher willingness to pay. Disney+ has followed a similar model, launching ad-supported tiers in affluent regions like the U.S., Canada, and Western Europe, where subscribers are more accustomed to higher streaming costs.

In price-sensitive regions such as India, the SVOD model skews differently. Netflix has even reduced subscription prices in India, avoiding ad tiers altogether and aligning with local economic dynamics. However, in Latin America, AVOD revenue is projected to outpace SVOD over the next five years, and major U.S.-based platforms like Netflix, Disney+, and Max have laid plans to introduce ad-supported offerings.

By selectively leveraging AVOD models, these companies aim to optimize revenue in diverse regional markets, appealing to price-sensitive users while maximizing ad-based income streams.

---

Discover What Global Streaming Platforms Pay to License Films and Shows

Unlock unparalleled access to detailed market intelligence drawn from financial data and agreements between leading industry players, including distributors, producers, and streaming platforms.

Gain a competitive edge by understanding the real-world distribution rates and terms driving global licensing deals. By leveraging most-favored-nation rates, our data reflects a diverse range of content and distributors, ensuring relevance across multiple availability windows and content tiers.

---

The Cable Challenge: Linear Channels on the Decline

As FAST and SVOD thrive, cable channels face declining viewership and diminishing profit margins. Cable, once a reliable revenue generator for media conglomerates, is now struggling under the weight of cord-cutting. Disney CEO and Comcast President have both floated the idea of offloading their linear channels. However, Wall Street’s cautious response to such suggestions underscores the challenges inherent in divesting these assets, even as streaming remains less profitable per user.

The potential solution some industry insiders propose is a “channel rollup” — combining discarded linear channels from various companies into a single entity to consolidate resources and extend the brands’ life spans. Such a strategy, however, appears unlikely given the lack of distinct brand value for many of these channels. Additionally, leveraging must-have cable channels like ESPN in negotiations for weaker channels will no longer hold the same power, weakening the bargaining position of traditional media companies.

---

The Ad Market Shift: Opportunities and Limitations for FAST and Cable

The shift in ad dollars is evident as advertisers pivot towards digital-first platforms. FAST channels, leveraging their free, ad-supported format, are increasingly attractive for brands seeking broad reach across multiple demographics. Tubi’s and The Roku Channel’s viewing shares, now competitive with Disney+, have made them significant contenders for ad spending once directed toward cable.

Cable’s limited audience growth contrasts with the engagement potential of FAST platforms, making the latter more compelling for advertisers interested in extensive reach. However, cable still holds some appeal for advertisers targeting older demographics that remain loyal to linear viewing. This transitional phase provides a clear opportunity for FAST platforms to further cement their value proposition to brands by delivering high engagement at a fraction of cable’s cost.

---

FilmTake Away: FAST and SVOD Reshape the Viewing Ecosystem

As FAST and SVOD continue to reshape the streaming and cable markets, media executives face strategic choices that will define the industry’s future. The rise of Samsung TV Plus exemplifies how proprietary FAST platforms, bolstered by smart TV growth, can capture significant audiences without the viewer fatigue associated with subscription services. Simultaneously, the regional expansion of ad-supported SVOD tiers signals a nuanced approach to balancing revenue with accessibility, particularly in economically diverse markets.

The decline of cable channels, once stalwarts of media conglomerate portfolios, reflects the broader shift toward digital and on-demand content consumption. The challenge lies in guiding this multifaceted market, where the ad-supported model of FAST, the selective growth of SVOD, and the struggles of traditional cable coalesce. Future success in this space will require an agile approach, leveraging both the low-barrier engagement of FAST and the premium appeal of SVOD while recognizing that linear TV, though diminished, remains a valuable piece in a rapidly evolving puzzle.

---