▲ ⓒpexels
‘FAST‘ (ad-based free streaming TV) is attracting attention as a relief pitcher to overcome the stagnant growth of paid broadcasting.
According to the digital TV research industry on the 31st, the global FAST market size is expected to grow approximately three-fold from $6 billion in 2022 to $18 billion in 2028.
As of the third quarter of 2023, the proportion of households watching FAST at least once a week in the United States is 47%, and the total number of channels provided is approximately 1,600. Interpret, an American analysis company, analyzed that FAST advertising revenue will exceed $20 billion by 2022, which has more than doubled since 2020.
The reason for the activation of the FAST service in the United States is considered to be the expensive paid broadcasting fee of about 100,000 won per month. In addition, there is analysis that the ‘streamflation’ phenomenon, in which OTT operators increase fees, has promoted the introduction of FAST.
In Korea, the market size is growing, led by smart TV operators, with attention being paid to the high growth potential of FAST. Market research firm Digital TV Research predicted that Korea’s FAST market size will reach 1.18 trillion won in 2028.
FAST is also discussed as a way for the domestic OTT and content industry to advance overseas. Previously, the Ministry of Science and ICT announced the creation of the ‘Global K-FAST Alliance’ when announcing major policy implementation plans for 2024. The purpose is to create a dedicated channel that gathers content from major domestic media companies and CP companies and provides it through global FAST.
Although FAST is attracting attention as a way to improve the profitability of the paid broadcasting industry, its introduction does not appear to be progressing quickly in the industry. Currently, the only operator operating FAST in the paid broadcasting industry is D’Live. ‘Playjet’, launched by SK Broadband, was discontinued in February.
Pay-TV operators are weighing the introduction of FAST and are having a hard time taking action. In a situation where the number of paid subscribers is decreasing, it is questionable whether advertising revenue through FAST will be greater. They all agree that assessing the impact on the media ecosystem should be prioritized rather than promoting FAST, and that easing policies and regulations to ensure the safety of the paid broadcasting market is more urgent.
An industry official said, “FAST is called a rival to OTT, but the cost of building the service, the loss of existing subscribers, regulations, etc. must be considered,” adding, “Securing quality content is essential for revitalizing the service, but it is questionable whether it has sufficient competitiveness.” “He said.
