June Sees FAST Platforms Outperforming Premium Streamers in TV Share

Free, ad-supported streaming television has been steadily growing, challenging premium subscription services in terms of viewership. In June, Tubi, the Roku Channel, and Pluto TV collectively garnered a larger share of television viewership at 4.3% compared to premium services like Max, Paramount+, and Peacock at 3.7%, according to Nielsen’s latest edition of The Gauge.

Tubi saw a 2% share of TV usage, marking a significant 14.7% increase from the previous month, aligning closely with Disney+. When Disney+ is factored into the premium services’ total, it slightly surpasses the combined usage of the FAST channels at 4.7%. The appeal of FAST channels lies in their free offerings, particularly attractive as premium services’ costs rise.

Andrew Rosen, founder of streaming newsletter PARQOR, highlights that the success of FAST channels stems from prioritizing product quality and viewing experience over content. These platforms focus on being user-centric and accessible, resonating with audiences seeking an engaging viewing experience.

Chief Content Officer at Tubi, Adam Lewinson, emphasizes that while subscription video on demand (SVOD) remains significant, free, ad-supported streaming will dominate the market. The shift towards free, ad-supported television reflects a historical trend in television viewing models, now evolving into the streaming era.

The emergence of streaming services led legacy studios to create exclusive, subscription-based platforms. However, the appeal of free, ad-supported channels challenges this model, emphasizing the importance of user experience and diverse content offerings.

The success of FAST channels hinges on personalized recommendations and user-friendly interfaces that enhance viewer satisfaction. By focusing on the overall user experience, these platforms aim to keep viewers engaged and entertained.

Younger audiences, accustomed to personalized content recommendations from social media platforms like YouTube, prefer on-demand, streaming services. The FAST channels cater to this preference by offering relevant, long-form content in a user-friendly format.

While content plays a role in streaming service success, FAST channels primarily rely on acquired content rather than original productions. Licensing partnerships with legacy studios enhance their content libraries, providing viewers with a wide array of options.

As the streaming landscape evolves, the appeal of free, ad-supported television challenges the value proposition of paid services. The user-centric approach and diverse content offerings of FAST channels raise questions about the necessity of premium subscriptions in a competitive streaming market.

In conclusion, the rise of free, ad-supported streaming television reflects a shift in viewer preferences towards accessible, user-friendly platforms offering diverse content options. As the streaming wars continue, the success of FAST channels underscores the importance of prioritizing user experience and personalized content recommendations in a competitive streaming landscape.