Vizio is outperforming Roku in Q3 2023, with 12% higher engagement and 9% higher ARPU. Despite a tough ad market, Vizio has leveraged the home screen to capture more revenue and increase its ARPU by 14%. Conversely, Roku saw a 7% decline and higher Platform+ revenue from strong home screen revenue.
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FAST video services are highly engaging; US leads the world due to local news, weather, and major providers like Weather Group TV, Pluto TM, Amazon Freevee, LG, Roku, Samsung and Rakuten. Content is easily located through friends’ and family’s recommendations.
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The Amagi FAST Report reveals potential growth for the Free Ad-supported Streaming TV (FAST) model with estimated 1.1bn users and $12bn revenue by 2027; Ragul Thangavel is an engineer-turned-writer experienced in media, OTT tech, video production who now drives innovation at CTV offering addressability and interactivity.
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Vizio enters TVOS space with SmartCast OS to grow ad business, compete with Google, Amazon, Roku, etc. It offers unique FAST WatchFree+ service to succeed against competition and increase households with greater scale in advertising.
Read MoreAd-supported streaming services are becoming more popular, offering cheaper and targeted content to consumers. Services like Netflix and Disney are introducing ad-supported subscriptions, alongside advancements in ad-tech to ensure ads are seen, generating more revenue from dual models. Apple is also potentially exploring an advertising product for its service. Interactive T-Commerce ads offer additional income potential.
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DEG, an investment firm, saw a 20% increase in profits this quarter due to investments in private equity and venture capital. Consumer spending on movies and TV rose 16.8%, with digital formats accounting for 96%. Ad-supported premium AVOD and FAST content hit an estimated $4.5B in ad revenue. Theatrical release delays may impact upcoming quarters.
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Samsung TV Plus has seen a 60% viewership increase over the last year. The product upgrade includes a range of new features, including Kids Hub, Music Destination, Movie Hub and a News offering. These are available on Samsung Smart TVs, Galaxy devices, Smart Monitors, Family Hub refrigerators and the web.
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Freevee, Pluto TV, The Roku Channel and Tubi are rising platforms with increasing user awareness. They offer commercial-free TV without costly subscription fees, from live streaming channels to movies and reruns. Freevee features ad-breaks every 15 minutes, while Pluto TV has 350+ channels, Roku 450+, and Tubi 200,000+ movies and shows. 55+ news channels are also available on Tubi. Viewers are increasing FAST content watched in 2023.
Read MoreFAST services, vMVPDs and OTA are expanding quickly, with 8.8 million switching from traditional pay TV to other options. SVODs gained 1.6 million subscribers, while Smart TVs and UltraHD help drive the shift away from pay-TV. However, industry price woes may stall growth.
Read MorePersonalised content discovery tools can increase revenue by 25%. Omdia and Plum Research show viewers concentrate on five channels, limiting those from being discovered. Using personalised search, recommendations and guide follows helps users find the right channel to boost loyalty.
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Companies don’t reveal usage metrics, only provide claims of viewership without specifying what defines a “viewer”. Third-party reports give numbers without factual basis.
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I see two main reasons why FAST might not be the savior that many believe. First, it will be hard to generate enough money only on advertising to be able to create the catalog of content that the viewers expect. But maybe more importantly, FAST doesn’t solve another main reason why people leave the linear channel packages… User Experience.
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