It’s the weekend. You have the entire day to relax and watch interesting movies. You wind up all your chores, get some popcorn and sit in your favorite chair. As you switch on your video device and begin browsing through a huge collection of apps each with a huge collection of movies, you realize something—you don’t know what to watch!
Having multiple S-VOD subscriptions in hand doesn’t excite us any more as more options simply mean more chaos. Audiences across the US and Europe are showing signs of this phenomenon called subscription fatigue, forcing them away from the S-VOD model towards linear TV experience delivered by Free Ad Supported TV (FAST).
The question before content brands and distributors in the APAC region is, does FAST stand a chance in this part of the world? Will the demand for linear content in the Asia-Pacific region see a boom? What are the opportunities for content owners in the ad supported streaming TV space?
The outlook seems bright thanks once again to CTV that is making steady inroads into households across countries such as Japan, Vietnam, Australia, India, and Singapore.
While the APAC region continues to be a strong mobile first market, the adoption of CTV is projected to witness a robust growth as well. Here’s a quick snapshot of people viewing streaming TV from the GlobalWebIndex 2020 report:
If we talk about Indonesia alone, 7 in every 10 consumers already have access to a connected TV. The COVID-19 pandemic proved to be fruitful for the growth of connected TV adoption as more and more people switched to family viewing. This led to a 92% increase in the consumption of streamed content.
CTV adoption figures from Australia are impressive as well. 8 in every 10 consumers have access to a connected TV and prefer it for viewing over a mobile device.
Giant consumer electronics companies like Samsung, Xiaomi, LG, and TCL have already taken the cue and are hence looking at capturing the space that combines linear television viewing and federation of third-party S-VOD and A-VOD apps.
Looking at these numbers, it’s safe to say that connected TV-based viewing is only going to exponentially rise in the APAC region.
This also means big things in terms of advertising spends for connected TVs. In an interesting study by Video Advertising Bureau, it was discovered that when people consume ads as a group, they tend to get more emotionally invested in them. The emotional response of solo viewers was recorded as 37%, while group viewers had a whopping 71%.
Why APAC content brands must think FAST
Higher adoption of connected TVs means a brighter horizon for FAST resulting in better content monetization chances. Currently, content owners in Asia are primarily looking at international FAST markets to carry their content. Especially, channels catering to diaspora like Indian/Filipino as well as internationally popular content like Korean drama.
Given the rising connected TV adoption rates, and the fact that APAC consumers are more tolerant to ads, they are ready to hop on to FAST. Content owners, therefore, automatically have a large user base to target. They can create niche content and leverage dynamic ad-insertion technology to launch highly impactful ad campaigns, successfully monetizing their content.
According to YouTube’s Internal Data from Japan, Australia, and India for 2021, audiences are streaming content for longer hours and choosing longer videos to watch. Longer videos mean increased opportunities for ad placements and hence, better monetization chances.
There’s a significant proportion of regional audiences who love to watch long-tail content either in their local language or English. Creating and distributing such content with subtitles, on an ad-funded OTT model can massively help content brands.
Is FAST the future in APAC?
As people move away from traditional cable TV and even S-VOD, A-VOD is predicted to be the fastest-growing content model. Based on a study by Digital TV Research, A-VOD revenues are set to increase by 100% between 2020 and 2025. On the other hand, revenue from S-VOD is projected to grow by a mere 59% for the same timeframe.
What makes FAST the new black?
COST | CONTENT | CONVENIENCE
Have any brands already taken the free ad supported route in APAC?
The answer is, YES!
There’s no better time than now for content owners to enter the FAST lane and create unforgettable viewing experiences for users while making the most of their content in terms of monetization.
The APAC market is ready for FAST. It is ready for YOU. Are you?
If you are all set to thrive in the FAST world, it’s time to get the Amagi advantage.
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