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27 February, 2025 | 16:42
The growing fatigue of viewers with traditional cable television and their shifting preferences towards digital platforms, the advancement of technologies, and advertisers' access to highly targeted advertising have driven the rapid growth of the FAST market, with regional specificities. Global data platforms and business analysts forecast further market expansion.
Growth Factors
Expansion of high-speed internet infrastructure and connected devices
In Europe and the US, broadband internet coverage (5G, fiber-optic networks) is increasing, lowering barriers to streaming.
Smart TVs, media players (Roku, Fire TV), gaming consoles, and mobile devices provide easy access to FAST platforms.
Rapid development of content delivery technologies
Modern FAST platforms utilize AI and machine learning for dynamic content optimization, viewer preference prediction, and personalized ad insertion. This enables not only adapting streaming quality in real-time but also automatically adjusting content across different devices, ensuring the best viewing experience.
FAST platforms offer premium content for free
Unlike subscription-based services (Netflix, Disney+), FAST does not require payment for viewing.
Companies invest in licensed content, including news, movies, TV series, and sports events, attracting viewers and increasing ad value.
Viewers transition to personalized watching
FAST combines linear TV (its traditional scheduled programming and continuous broadcasting) with the advantages of digital platforms (recommendation algorithms tailor content to user preferences, and viewing is available anytime, on any device).
Advertisers gain precise targeting and new monetization opportunities
FAST leverages data-driven advertising, including SSAI (Server-Side Ad Insertion) and programmatic ads, enabling precise audience segmentation.
Thematic FAST channels further enhance targeted reach through specialized content.
Financial Indicators
The FAST market is demonstrating rapid revenue growth in both the US and Europe. According to market research conducted by Grand View Research, in 2023, the revenue of the FAST segment in North America (primarily the US) was approximately $2.55 billion, while in Europe, it amounted to about $1.91 billion. Dataxis estimates that the combined FAST revenues in the US and Canada were about four times higher than in Europe by the end of 2023 (around $4.1 billion vs. ~$1 billion).
Globally, more than 25% of FAST’s total revenue in 2023 came from North America.
Grand View Research projects continued growth with regional variations. In North America (primarly the US), FAST revenue could reach nearly $9.8 billion by 2030, while in Europe, it is expected to grow to $7.5 billion.
However, the revenue growth rate for FAST in Europe is slightly outpacing that of the US (21.6% vs. 20.5% per year, respectively). This is due to the more mature market in the United States, where about 60% of households already use free ad-supported streaming services (Deloitte). In contrast, the penetration rate in Europe is lower, leaving more room for growth.
Leading FAST platforms like Pluto TV, Samsung TV Plus, and Rakuten TV are expanding their presence in the region, offering European viewers a traditional TV experience with the benefits of VoD. About 30% of European households watch only free over-the-air TV, making FAST a natural alternative.
Key Trends
Increasing fragmentation of the streaming landscape
The number of streaming platforms and available content continues to grow, making this one more fragmented.
As a result, consumers need multiple services to access their desired content, leading to higher costs and potential subscription fatigue.
Media companies are adapting by creating FAST-exclusive channels featuring only their own content.
There is also a rise in thematic and localized FAST services, offering free content tailored to specific audience preferences.
The rise of data-driven targeted advertising
Dynamic Ad Insertion (DAI) enables precise audience segmentation based on user characteristics and viewing behavior, leveraging advanced data analytics.
Different ad delivery methods allow ads to be inserted on either the server-side (SSAI) or the client-side (CSAI).
FAST audiences are accustomed to ads as a natural part of linear TV, making them more accepting of ad-supported content.
Additionally, FAST viewers have limited ability to use ad blockers, encouraging brands to increase their budgets for CTV advertising (used on smart TVs, streaming devices, gaming consoles, and OTT platforms).
The rise of hybrid monetization models
Many platforms are testing hybrid business models combining SVOD + AVOD + FAST.
They adjust ad strategies based on user preferences, offering a choice between free content with ads or paid, ad-free options.
Additionally, media companies use FAST as a customer acquisition tool for their premium subscription services.
Increased investment in local and niche content
In both Europe and the US, demand for local FAST channels featuring content in native languages is rising.
Local TV networks and studios are launching FAST formats to compete with global platforms.
Niche thematic channels (sports, esports, true crime, classic cinema, and news feeds) are gaining popularity and expanding their audience base.
Advancements in technology and AI-driven innovations
AI-powered personalization is improving content recommendations on FAST platforms.
Optimized content delivery reduces latency, ensuring stream stability and high-quality viewing.
New interactive features, such as integrated chat, voice control, augmented reality, and advanced content consumption options (multi-angle camera views, multiple streams on one screen), are significantly enhancing the FAST viewing experience.
Market consolidation and strategic partnerships
Major players are merging or acquiring smaller FAST services (e.g., ViacomCBS acquiring Pluto TV).
FAST platform integrations with device manufacturers (Samsung, LG, Amazon Fire TV) provide access to massive audiences.
Media companies are also signing exclusive distribution deals to stand out from competitors.
Conclusion
The FAST market in both the US and Europe is entering a phase of sustained growth, driven by audience demand for free content and the industry's shift toward ad-supported models.
From a financial perspective, FAST is one of the fastest-growing media segments, with revenues doubling every few years and major investments continuing.
The FAST audience has become a significant part of TV and online viewership, especially among younger and budget-conscious consumers.
Technological advancements will continue to enhance FAST’s appeal for both users and advertisers.
Advertising models are evolving toward greater targeting and interactivity, balancing monetization with audience experience.
Free ad-supported streaming is becoming a global phenomenon, positioning itself as a serious competitor to subscription-based platforms.
According to forecasts, in just a few years, a significant share (30–40%+) of all streaming viewership will be attributed to FAST and other AVOD platforms.
The industry's challenge now is to keep improving user experience, advertising technologies, and content strategies to retain audience interest and ensure continued FAST market growth in both regions.
Sources and References:
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