Streaming will only grow in the future. Consumers want convenient and affordable avenues to access content. From a trade perspective, media companies invest heavily in content creation to keep up with demand. While being price competitive, they must monetise their content. To reach more consumers across multiple platforms, distribution strategies need to be reevaluated.
At KC Global Media, we focus on collaboration and matching suitable content with our fans and viewers. In our opinion, free, ad-supported TV (FAST) channels are steadily on the rise, which affects the way viewers consume information and how platforms curate it.
Why are FAST channels gaining popularity? FAST channels and streaming services aren’t mutually exclusive. Research shows that most consumers use both types of services. However, we are seeing a clear shift among viewers, many of whom are now gravitating towards classic TV, often for the same reasons that made it fall out of fashion when streaming first came along.
One of the main reasons FAST channels are growing is because of costs. Consumers are fatigued from subscribing to (and paying for) multiple services, especially on the back of recent price increases and efforts to stop account sharing. Another reason is that these channels are often curated around specific themes, niches, or content pillars. If a viewer finds a channel that they enjoy, they will often stay and watch for longer periods of time. This also eliminates the oft-heard complaint from viewers that there’s “nothing to watch” because with a FAST channel, the content is already curated for them.
Accessible across digital and mobile platforms, FAST channels also offer a wide variety of content and make it easy for consumers to discover new and niche content, which may not be available on streaming platforms.
It’s not just viewers who are finding the benefits in FAST channels. Many platforms are also looking to roll out these channels to increase revenue from their existing content libraries—which often contain popular and tried-and-true content—especially since acquiring fresh content can be costly.
Research demonstrates that these channels are making a comeback, especially in the US. Variety has shown that the number of FAST channels available in the US is on the rise, with an increase of 29 percent from last year. Market leaders are also taking note, and so are we. KC Global Media just launched KCM, our first-ever FAST channel in Asia. It is now available in India and will be rolled out to other Asian markets progressively. KCM is our first general entertainment FAST channel and features over 300 hours of drama series, movies, and factual titles in English.
As content providers, we want to make premium entertainment accessible to everyone. KCM is a prime example of that. Our extensive range of both well-known and unique popular entertainment shows our dedication to curating content for our channels.
India is a market close to our hearts. We have a good understanding of the country and have excellent partners to work with. With over 850 million viewers, India has the world’s second-largest television market and demonstrates a rapid growth for digital and smartphone penetration, creating a favourable environment for FAST channels.
Its TV landscape is diverse and fragmented, with a variety of regional and niche channels enjoyed by viewers. This presents an opportunity for a FAST channel like KCM to reach specific audiences, and an ideal platform to meet the growing demand for free and ad-supported content in India.
What does the resurgence of linear TV portend? While many predicted its demise in favour of streaming services, there is still a strong demand for the former. The average household may subscribe to multiple streaming platforms but will probably cut back eventually on those that do not meet their content needs. As costs rise, we predict more will also cut for economic reasons.
Most will eventually return to content from reliable linear channels such as AXN, Animax, GEM and ONE, which offers the entertainment niche fans have been familiar with over the years. Smart TVs allow accessibility to a variety of streaming apps and services directly from their TV, with no separate streaming device. This enables viewers to watch linear TV (along with their cable subscription) and streaming content side-by-side.
There is still a strong preference for linear TV among advertisers. For companies to promote their products, new ad formats, data-driven targeting, sponsorships, and product placement remain the most preferred methods. At KC Global Media, our focus is on collaboration and matching appropriate content with our fans and viewers.
