News Broadcasting: FAST channels catch eyeballs, but can they catch up with OTT giants?

The rise of Free Ad-supported Streaming Television (FAST) channels is carving out a new revenue avenue for news broadcasters in India's evolving Connected TV (CTV) landscape. While it’s a step forward, the revenue generated from FAST still lags significantly behind platforms like YouTube. According to experts, while the revenue-sharing percentages might be similar, earnings from FAST account for less than 20% of what is generated from OTT platforms.

This disparity highlights the challenges FAST channels face in scaling up their monetisation potential, even as they gain traction among cord-cutters and premium audiences. As per industry insiders, the nascent stage of FAST in India, combined with a limited advertiser interest compared to established platforms like YouTube, has kept its revenue growth modest.

However, as the CTV ecosystem expands and more advertisers recognise the value of reaching high-value audiences, FAST channels are poised to play a bigger role in the digital ad landscape. Despite the substantial ad revenue potential of CTV, estimated to reach $1 billion by 2025, the industry continues to grapple with challenges such as revenue-sharing models between CTV platforms and content providers.

On the negotiations or deals happening between the FAST platforms and channels, Abhijeet Rajpurohit, Co-Founder and COO, Cloud TV, says it is lucrative for a channel to work with the platforms for two main reasons. “Firstly, the platform already has an established reach of millions which the channels can tap into as potential viewers. Secondly, by working with the platforms the channels can enable that reach at a fraction of the cost and scale much quicker as compared to creating their own app.”

FAST revenue gap

Industry experts emphasize the growing but still limited revenue potential of FAST channels. An anonymous broadcaster noted that while platforms like Samsung provide a viable revenue stream, it still pales in comparison to earnings from YouTube or Direct-to-Home (DTH) services. “For instance, channels like Aaj Tak might earn between ₹10 to 20 lakhs per month from FAST, whereas YouTube revenues could reach ₹1.3 to 1.5 crore monthly. This disparity underscores the potential for growth in the FAST segment, especially as more viewers cut the cord and seek alternative content delivery methods.”

According to them, it is “too early to say if advertisers are taking a lot of interest in FAST; the advertisers also have the choice of investing in OTT advertisements like Jio, Hotstar, and others. But News is a good space for FAST TV because it gets you a premium audience while it’s not behind a paywall.”

FAST options in India

In India, several brands have embraced the FAST model, offering a diverse range of content across platforms. Some of the popular options include Samsung TV Plus which provides a free streaming TV service featuring channels like Superhit Beats, Kaanphod Music, Fully Faltoo, and Colors Infinity Lite from Viacom18. Jio offers free content alongside live sports. Then there is also Amazon Mini from Amazon. Additionally, Victory+, in partnership with Amagi, has launched over 60 FAST channels. FAST channels are accessible on smart TVs from leading brands like Samsung, LG, TCL, and Xiaomi, delivering a TV-like experience with genres spanning news, entertainment, food, and lifestyle.

FAST revenue sharing explained

However, as the market matures, discussions around fair and equitable revenue-sharing models are gaining momentum. Currently, revenue sharing models vary across platforms and content providers, with factors such as content exclusivity, viewership numbers, and advertising inventory influencing the distribution of revenue.

Prabhvir Sahmey, Senior Director for Ad Sales at Samsung Ads, elaborated on the various revenue-sharing models currently in play within the FAST ecosystem. He explained that there are three primary models: revenue sharing with channel owners (20%-50%), inventory sharing where content owners bring their ads (30%-50% of inventory), and outright licensing where providers retain 100% of revenue. He anticipates further innovation in these models as the Indian market matures, emphasising that “India being India – it will be innovative in its approach for revenue models.”

To further capitalise on the CTV opportunity, industry players are focusing on improving measurement and targeting capabilities. Advanced analytics tools are being deployed to measure ad performance, audience demographics, and content consumption patterns.

Additionally, programmatic advertising platforms are being integrated to enable targeted ad delivery and optimise ad spends. As the CTV ecosystem continues to evolve, it is poised to revolutionise the Indian advertising landscape, offering advertisers greater precision, scale, and impact in reaching their target audiences.

“In other markets there are some new models coming up as well. They are called – pop up. Meaning, a piece of content is aired for a specific duration of time and it can have multiple monetization models including sponsorship or other brand integrations. In India, FAST remains in its early stages and I would anticipate things to evolve,” says Samhey.

CTV and FAST: Growing reach and revenue potential

Currently, CTV reaches between 42 to 55 million households, and this number is expected to grow significantly, with projections suggesting it could reach 45 million by the end of 2024. This growth positions CTV as a critical medium for advertisers targeting affluent and upper-middle-class audiences.

The financial outlook for the FAST market in India is promising. According to recent reports, the Indian FAST market is projected to reach $63.69 million in 2023, with expectations of growing to $104.10 million by 2027. As more consumers embrace smart TVs—currently estimated at 34 million households, potentially increasing to 45 million—the revenue potential from targeted advertising becomes increasingly evident. The ability of FAST channels to provide engaging content without subscription fees makes them an attractive option for both viewers and advertisers alike.

Advertisers warming up to CTV and FAST opportunities?

And as CTV adoption increases, advertisers are recognizing its value in reaching high-value audiences. The CEO of a leading media agency noted that brands like Mondelez, L’Oréal, and Zydus have achieved significant success through CTV campaigns. “Currently, CTV reaches between 42 to 55 million homes, according to our internal data and broader market estimates. Its effectiveness is largely due to the precision targeting capabilities of CTV, which allows brands to tailor their messaging to specific audience segments—cord shavers, cord cutters, and cord nevers—each representing different viewing habits and preferences.”

Cord shavers maintain both traditional cable or satellite connections alongside CTV. These are often households with older family members preferring cable TV while younger members lean towards OTT content. Cord cutters, on the other hand, have completely moved away from traditional cable, relying solely on CTV for their media consumption. Lastly, cord nevers represent a new generation—typically younger audiences—who have never subscribed to cable or satellite services and consume all their content digitally.

The way ahead

Shradha Agarwal, Co-Founder and Global CEO of Grapes Digital, reinforced the advantages of FAST platforms over traditional subscription models. She pointed out that “FAST channels not only generate additional revenue while running on linear TV but also allow for more straightforward ad targeting based on viewer demographics. “

With FAST platforms,” she stated, “targeting is very simple. You can say, 'I can show your ads only to women,' or specify other demographics.” This flexibility is crucial as advertisers increasingly seek to align their campaigns with viewer intent.

In conclusion, as India’s CTV landscape continues to evolve, the integration of FAST channels represents a pivotal moment for advertisers seeking to connect with premium audiences. With innovative revenue-sharing models and advanced targeting capabilities, FAST platforms are not just complementing traditional media—they are redefining it.

“FAST is hot, but FAST on CTV is even hotter. Most agencies or brands already advertise via AVOD content available. The difference with FAST is that now they have access to showing ads on LINEAR high-quality content. The result is a much happier brand and user,” says Rajpurohit, adding that most agencies are not innovating anything for their clients if they don’t have CTV as a line item.

As Agarwal aptly put it, “With the right audience and the right mindset at the right time, ad placements work exceptionally well.” This evolution marks a significant step forward in how content is consumed and monetized in India’s rapidly changing media environment.