SAN JUAN, PR — Why new free, ad-supported TV (FAST) services may seem like they are defining a new media model, ad-supported TV was the way much of TV always used to be.
Over the last decade, and largely as a response to how the 2009 economic crash hit advertising, subscription video services became the driving force in TV.
In this video interview with Beet.TV, Bill Condon, VP, Enterprise Sales & Partnerships, Xumo, says the rise of TV services like his mean: “Old TV is the new TV, new TV is the old TV.”
Back in time?
“The future of TV is FAST – free, ad-supported streaming TV services,” Condon says.
“Yes, it feels like we’re going back in a time machine, but that is where we are right now and what’s driving those trends.
“Platforms as well as these media companies cannot live on subscription SVOD services alone, charging five bucks a month, 10 bucks a month with no advertising. They need additional revenue streams.”
FAST forecast
A January 2023 Omdia forecast spills some numbers on FAST:
- $12 billion global revenue by 2027, up 3x from 2022.
- US revenue up from almost $4 billion in 2022 to more than $20 billion in 2027.
- Largest markets will be US, UK ($500 million) and Canada ($300 million), followed by Germany, and Brazil.
New ad scale
For Xumo’s Condon, the FAST boom is an opportunity for programmers to entice more viewers into subscription services through “sampling”, to make advertising revenue and for advertisers to get new powers.
He says the new channels offer enhanced reach and scale.
“I think it opens up a huge opportunity for advertisers,” Condon adds. “They’ve been jumping into this in the past four or five years, and I think they’ll continue to do so.
“You’re running in this environment where you have the same abilities for digital video from a targeting and a measurement standpoint and the reach and frequency.
“And I think that’s extremely compelling because it’s an ask and a solve that is currently there. And that’s why I think advertisers are in it now and they will continue to participate and spend and run in FAST channels.”
Zooming forward
Comcast acquired Xumo in 2020.
Xumo has partnerships with a range of content providers, including NBC News, Fox Sports, and Sony Pictures Television.
Xumo also produces its own original content, including web series and documentaries.
The outfit sells ads programmatically.
You’re watching coverage of Beet Retreat San Juan 2023, presented by LiveRamp, Madhive, Magnite, Paramount, T-Mobile Advertising Solutions and VideoAmp. For more videos from the Beet Retreat, please visit this page.
