The development of the video streaming industry caused the emergence of new forms of content delivery. Viewers indeed appreciate online streaming services for a variety of content forms, such as video-on-demand content, live streams, and TV programming. Moreover, they offer different access types: some content is available on a subscription basis, and other videos are accessible for free. Viewers can find content and an access type for their tastes and capabilities.
Both a FAST channel and an AVOD platform utilize advertising as a revenue-generating model. However, they differ: AVOD platforms deliver on-demand content, while FAST is quite similar to TV programming. For example, it is like watching Albanian TV channels but via the Internet on any device.
Let’s talk about that in detail.
FAST and AVOD Explained
Let’s start with AVOD. AVOD stands for advertising-based video-on-demand. AVOD platforms stream a variety of content on a free basis. Viewers don’t purchase access to content but watch ad commercials instead. They usually don’t mind viewing ads since the content is chargeless.
FAST, in turn, stands for free ad-supported television. It is also free and ad-based for viewers. People can stream content without recurring payments. FAST channels are almost indistinguishable from linear television. FAST platforms run scheduled programs in real-time. However, they are streamed instead of being broadcast. Providers can also add VOD content so that viewers enjoy both FAST and AVOD.
Viewers benefit from FAST and AVOD since they get access to a plethora of content at no cost. Those who don’t want to or cannot afford to purchase a subscription appreciate such services the most.
Furthermore, FAST platforms blur the boundaries between streaming and TV broadcasting. This can be comfortable for viewers who prefer the scheduled television.
Content providers generate revenue by placing ads during video playback. It is a win-win for all parties involved. Viewers watch content for free, providers make income by advertising, and advertisers reach their target audiences.
Finally, these platforms are accessible on various devices, including mobile phones, tablets, desktop computers, and TVs.
FAST and AVOD Compared
The advertising-based revenue model is growing in the OTT industry now. And experts predict its further growth. Viewers switch to such platforms because there are too many subscription-based streaming services in the market. They cannot pay for all they desire, and ad-supported platforms become an alternative.
AVOD platforms usually offer various content formats, including movies, series, tutorials, lectures, and TV shows. On the other hand, FAST channels usually follow the TV broadcasting style.
With FAST, commercials are inserted at intervals during content playback, while AVOD doesn’t provide strict regulations. Ads can be inserted before, during, or after content with SSAI or CSAI.
However, FAST platforms usually generate revenue only by advertising, whereas AVOD platform providers can combine advertising with other monetization models leveraging a hybrid approach.
AVOD platforms provide more control over what people watch since these videos are available on demand. But with FAST, consumers may relax and not make decisions on what to watch. They turn on the channel and enjoy what airs at the moment.
Generally, AVOD and FAST are very similar but differ since FAST requires a user to follow a schedule, while AVOD offers on-demand content.
FAST and AVOD Statistics
Based on the report, global AVOD revenue will reach $91 billion in 2028. That is up from $38 billion in 2022.
Moreover, analysts predict that FAST channel revenue will amount to $12 billion during the forecasted period of 2022-2027. In the USA alone, there are more than 1,500 FAST channels. And the number is set to grow.
Drawing the Line
AVOD and FAST are pretty similar to each other. But while AVOD provides more control over viewership, the FAST experience resembles TV broadcasting as viewers are to watch what is on air at the moment.
AVOD allows users to choose what they want to watch. For example, they can choose any episode of a series with AVOD. But with FAST, viewers will view the episode that happens to be on. In both cases, people will do that for free but watch commercials during the playback.