FAST is booming as branded content and sports drive the surge

What do Chuck E. Cheese, Lego and Hot Wheels have in common?

In addition to being kids-focused brands, they’re also brands with their own free ad-supported streaming TV (FAST) channels. Chuck E. Cheese even launched a digital out-of-home (DOOH) network as part of a larger modern makeover.

It’s indicative of a rapid expansion of FAST in recent years. According to a report by Nielsen’s Gracenote, the number of FAST channels has surged 42% since mid-2023. It’s thanks to not only brands taking part but TV operators investing in their own platforms, as well as sports making a bigger splash in the space.

“FAST is not a passing fad,” says Brandon Katz, director of insights and content strategy at Greenlight Analytics. “That has given the industry more confidence to invest in the field and expand its operations.”

Bottom line: FAST could take on greater significance in the connected TV (CTV) ecosystem for both advertisers and consumers in the coming years.

“As nascent as a lot of people think this [FAST and advertising video-on-demand] industry is, it’s matured very quickly,” says Vikrant Mathur, co-founder of CTV company Future Today.

“The industry is starting to look a lot like the traditional linear TV industry, from a standpoint of distribution. The likes of Roku and Samsung are the next generation of TV service providers because they have access to the consumer.”

FAST could reap the benefits of CTV growth

Marketers are embracing CTV, even amid current global economic uncertainty.

Fifty-six percent of marketers globally say they plan to increase spend on CTV this year, a slight uptick from 53% in 2024, according to a Nielsen survey published last month. In North America, the gains are even greater: Sixty-six percent say they plan to increase their investment, up from 44% last year.

FAST could reap the rewards. Last year, Goldman Sachs projected that the space could grow by 15% annually through 2027.

Consumers have taken notice too. Both The Roku Channel and Tubi topped subscription video streamers Peacock and Max in viewership in May, according to Nielsen. Combined, the viewership of Pluto TV, Roku Channel and Tubi was larger than any broadcast network in the month.

While YouTube led viewership overall, FAST offers advertisers and consumers alike a compelling alternative in a brand-safe, premium environment. And notably, the time U.S. viewers spend watching FAST platforms could grow more than that of YouTube this year, according to a new eMarketer estimate: nearly 11% versus 6.4%.

For Mathur, FAST offers the best of both YouTube and premium subscription platforms.

As he puts it: “All the bells and whistles from a privacy and brand-safety standpoint that something like Disney+ provides” without “charging an arm and a leg.”

FAST gets family-friendly

When it comes to FAST versus YouTube, it’s “easier for brands to slot in programmatic ads into traditional content versus user-generated social content,” Katz says.

But the safety element that Mathur alluded to could also help position the space as a more family-friendly alternative to YouTube, according to Katz.

Last year, toy company Mattel announced the debut of three channels dedicated to Barbie, Hot Wheels and Mattel Jr. for Samsung’s FAST platform, Samsung TV Plus.

Chuck E. Cheese, aiming to carve out a comeback after filing for bankruptcy in 2020, wanted in on the FAST action.

In partnership with Future Today — which also operates the Lego FAST channel — Chuck E. Cheese last month launched the CEC Media Network throughout its locations.

Out are the animatronics that entertained (or terrified, depending on who you ask) young people for years; in are a network of digital screens featuring family-friendly content (and ads) that consumers can also watch on Future Today’s HappyKids FAST channel.

Kids are intentional about what they watch, says David Di Lorenzo, SVP of kids and family at Future Today — and the in-location content may drive home viewership.

“Kids today aren’t in the mode of flipping on the TV and finding their favorite show [at a certain time] like when I grew up,” he says. “For families, a single-branded channel may work better than a mixed-program channel.”

Sports surge on FAST platforms

It’s not just brands driving the surge in FAST channels.

The number of sports channels has swelled 105% since the middle of last year, according to Gracenote, which observed 118 individual FAST channels that feature team sports events as of February.

Sports have broken through on FAST in other big ways, particularly with a deal between The Roku Channel and the MLB, and the Super Bowl airing on Tubi this year.

At the recent Cannes Lions festival, Tubi CEO Anjali Sud jested that her platform is “free Netflix” and expressed hope for more sports opportunities in the future.

“When you can offer live sporting events that are also cultural moments … for free — it works,” she said. “It expands the pie.”

As sports programming grows on FAST platforms, it reflects how closely they resemble traditional linear networks in the digital age, which could be to its advantage.

“FAST platforms cater to young and diverse audiences, especially among price conscious cord-cutters and cord-nevers, and serve as the first logical TV destination for older cord-cutting audiences with disposable income looking for a similar experience to the traditional pay-TV bundle,” Katz says.

“Name me a single brand that doesn’t want to tap into these demographics, and I’ll introduce them to the bankruptcy lawyer they’ll be needing soon.”