“On TV & Video” is a column exploring opportunities and challenges in advanced TV and video.
The future of TV is free and ad-supported.
AVOD allows viewers to pick what they want to watch, while FAST instantly immerses them in a program that’s already running, meaning you’re stuck with whichever episode happens to be on.
But, turns out, viewers can be paralyzed by choice. Despite their lack of viewer control (or that you might miss the first part of an episode), FAST is growing faster than AVOD. A recent Comcast study says 60% of US households now watch FAST channels. According to Kantar, FAST is the fastest-growing tier of streaming.
Without sign-ins, payment or the burden of deciding what to watch, FAST channels have a lower barrier of entry, making it easier for viewers to discover content, said Adam Lewinson, chief content officer of Fox-owned Tubi.
That’s why Tubi started adding FAST to its library to channel (pun intended) more viewers into its VOD offerings. Ideally, viewers who find themselves in the middle of, say, a Tubi Original or an episode of “Kitchen Nightmares” on FAST will continue watching the series more regularly in VOD.
To capitalize on the FAST trend, Tubi’s in the middle of trying to double its original titles overall, Lewinson added.
Lewinson spoke with AdExchanger.
AdExchanger: Why did Tubi decide to tack on FAST channels?
ADAM LEWINSON: We launched FAST channels initially with news, then with sports. Those are still the key opportunities in live television.
But FAST channels can also help solve for one of the biggest challenges in streaming from a viewer perspective, which is content discovery.
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That’s why FAST is a great complement to VOD. If viewers happen to land themselves in the middle of an episode, there’s every opportunity to switch over to VOD and continue or restart that episode.
Has this content delivery approach worked for Tubi before?
Yes. We’re seeing this type of cross-viewing behavior with Tubi Originals and “The Masked Singer,” which are both available via VOD and FAST on Tubi.
We just launched our new Gordon Ramsay FAST channel in July, because we’ve already had most of Gordon Ramsay’s content in our library for years.
And we plan to up the ante on original content.
How is Tubi’s approach currently split between AVOD and FAST?
Tubi has always been an AVOD streamer, and, predominantly, we still are. Most of our viewers are still in VOD.
We’re fairly new to FAST. We only started a year and a half ago, and FAST channels are already the fastest-growing portion of Tubi viewership.
The potential of FAST to drive content discovery also pairs well with our strategy to “super-serve” original content. Our algorithms recommend a very high volume of content that speaks to certain audience segments, which could lead to deeper engagement.
We’re also only in our second year of producing original content, but we’ve already announced we’re doubling down on our investment in original content this year. The more viewers end up watching Originals in FAST, the more we can tailor our recommendations to bump up viewership of Originals in VOD.
FAST channels are a great discovery mechanism for content. But, ultimately, VOD is where viewers are more engaged – and much younger.
What exactly does Tubi see in FAST?
VOD sees higher engagement, because viewership is more intentional. But FAST is growing because it gives viewers optionality. Some viewers are looking for that basic, lean-back experience they’re used to in cable, and FAST channels can satisfy that in a streaming environment.
More and more advertisers are also looking to achieve incremental reach with audience-based targeting, which our personalized content recommendation algorithms can support.
What does FAST channel growth say about the future of TV consumption?
The vast majority of content viewing will be both free and ad-supported.
And, especially this year, the TV industry is really seeing the scales tip away from SVOD and pay TV.
Tubi’s core business will remain AVOD, but FAST channels are a great opportunity to drive content discovery in streaming and, ultimately, engagement.
This interview has been edited and condensed.
