The 13th Global FAST Report, released by Amagi on October 23rd, 2023, highlights a significant shift in the streaming landscape, driven by the robust growth of sports content on Free Ad-Supported Streaming Television (FAST) platforms.
The report details a staggering 150% increase in global sports channel viewership on FAST platforms, far exceeding the overall 40% growth in viewership across all content types. This upward trend points to a growing appetite for sports content on these free streaming platforms.
According to Srinivasan KA, co-founder and chief revenue officer of Amagi, the addition of sports content on FAST is set to reshape the streaming landscape. "With sports channel viewership outpacing overall growth, it’s clear that FAST is becoming an increasingly important platform for sports leagues and broadcasters as a source of distribution revenue," he stated.
The report, based on data from over 2,800 channels utilizing Amagi's server-side ad insertion platform, Thunderstorm, also incorporates insights from a survey of 128 executives across streaming, broadcast, and sports sectors. The survey findings reveal that live sports are emerging as a top priority, with one-third of executives either already incorporating or planning to incorporate live sports into their FAST offerings. Furthermore, advertiser interest in live sports programming is surging, with 67% of respondents witnessing increased demand for ad placements during live sports broadcasts.
FAST, a model where streaming platforms provide content at no cost to viewers, but generate revenue through advertisements, has gained traction among both traditional broadcasters and emerging digital players. The flexibility of FAST allows networks to expand into more specialized markets, including regional sports and new leagues that might not find a wide audience on conventional TV networks.
The report's regional analysis reveals particularly strong growth in sports streaming viewership in the U.S. and Canada, where triple-digit growth rates have been observed. These two markets currently account for 60% of global sports viewership on FAST platforms.
Europe, the Middle East, and Africa (EMEA) have also experienced significant growth, with a nearly fivefold increase in sports channel viewership. This surge is primarily attributed to the addition of new channels, which now account for about one-third of the overall increase in FAST viewership. Additionally, live sports content is gaining prominence, with a 65% increase in live sports hours streamed on FAST platforms.
This trend is creating new opportunities for leagues, teams, and advertisers to engage with a larger audience. The ability to deliver live sports through FAST is considered a game-changer for both major sports leagues and niche sports, enabling them to reach fans who may have abandoned traditional pay-TV services.
As FAST continues its growth trajectory, new channels are playing a crucial role in driving viewership. Nearly one-third of the growth in FAST viewership is attributed to channels launched within the past year, highlighting the importance of fresh content in the ecosystem's continued expansion.
Amagi, recognized for its cloud-based SaaS solutions for TV and streaming, collaborates with prominent broadcasters such as NBCUniversal, Lionsgate Studios, and DAZN to assist them in launching and monetizing their channels. The company's report suggests that the growth of FAST, particularly in the sports sector, is poised to continue as more viewers turn to free streaming options.