Not all streaming services are designed for the living room TV – or phone and desktop screens, for that matter.
Some companies are finding their niche reaching audiences in public.
Atmosphere TV is an Austin-based streaming startup with free ad-supported TV (FAST) channels, which it distributes to gyms, restaurants, airports, waiting rooms and bars. It offers its channels to venues in exchange for the ability to run ads on the content. Atmosphere monetizes exclusively with ads – for now.
The company was conceived in a bar, when the co-founders saw an episode of “Judge Judy” playing, which didn’t quite fit the atmosphere (hence the company’s name), said CRO Ryan Spicer.
Out-of-home TV could capture people’s attention while they’re out and about, but only with the right content strategy, Spicer said. The idea is if customers are looking at the TV, they’re also being exposed to the ads.
As of April, Atmosphere’s channels play in more than 50,000 venues worldwide and reach 115 million unique monthly viewers, which is up from 100 million in March.
The company secured $65 million in Series D funding earlier this year at a $1 billion valuation.
Plugging in
Atmosphere has roughly 50 different FAST channels dedicated to specific content categories, including Tattoo TV, Billiard TV and Paws TV.
The company primarily sources its content either from social media influencers and creators or directly from advertisers and organizations sponsoring a particular channel, such as Red Bull TV and the PGA Tour.
Atmosphere pieces together short-form videos more likely to grab a viewer’s attention than a live linear channel airing full-length episodes of TV shows, often on silent, in the background.
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Venues choose which FAST channels they want to play, and can also upload their own creative within Atmosphere’s ad serving systems to advertise a product or promotion on-screen, such as happy hour deals or a specific mixed drink.
Marketers can also target advertisements on Atmosphere’s channels based on venue type or location. For example, an advertiser could run specific creative based on ZIP code, DMA or the type of location where the ad is running.
Atmosphere runs 60-second ad breaks for every three to five minutes of content and sells ads both directly and programmatically, including through private marketplaces and open exchanges.
But a TV strategy focused solely on digital OOH is “both a blessing and a curse,” Spicer said.
The rate of adoption from venues is considerably higher than that of advertisers and marketers. Streaming advertisers aren’t used to reaching viewers outside the home. To get advertisers more comfortable spending in uncharted territory, Atmosphere pitches the opportunity to reach more exclusive audiences.
Pay to play
One of Atmosphere’s clearest selling points is the chance for advertisers to reach people that only stream ad-free content at home.
Despite the rise of new ad-supported streaming services such as Netflix and Disney+, the growth of AVOD viewership seems to be plateauing in the US, with new subscribers more likely to sign up for ad-free subscriptions. According to research from analytics company Antenna, only 36% of new Disney+ subscribers signed up for the ad-supported offering three months after launch. For Netflix, that number was just 19%.
Plenty of streamers are still opting for ad-free streaming, and the opportunity to reach these viewers elsewhere is a big piece of Atmosphere’s pitch to marketers, Spicer said.
For now, Atmosphere is focusing on expanding its national ad sales team, which includes opening new offices to help raise advertiser demand to match the adoption it’s seeing from businesses. Atmosphere already has sales teams in Austin, New York, Detroit, Chicago and Los Angeles.
The more Atmosphere can exhibit OOH streaming as a promotional vehicle for brands, Spicer said, the more advertisers will consider buying in.
