Why Brands Can’t Ignore the Rise of FAST TV in Canada

Free Ad-supported Streaming Television (F.A.S.T.) services represent a significant shift in the television landscape, offering viewers an alternative to traditional linear broadcast TV. In Canada, the rise of F.A.S.T. television has been particularly notable, driven by the ease of access and changes in consumer viewing habits. The Canadian market still has substantial growth potential, especially considering that the usage rates of Pluto TV and Tubi in the US are nearly double those in Canada. According to our proprietary Involved Media survey, Tubi reaches 15% of the Canadian audience compared to 22% in the US., while Pluto TV reaches 9% in Canada and 18% in the US.

As the usage of these channels increases, the available media inventory for purchase will also rise, leading to competitive scaling.

The rise of F.A.S.T. television services has significant implications for the traditional linear broadcast TV environment:

Audience Fragmentation

As more viewers migrate to F.A.S.T. platforms, traditional broadcasters face a fragmented audience, making it challenging to maintain high viewership levels. This fragmentation is exacerbated by the variety of content available on these platforms, which caters to niche interests and personalised viewing experiences.

Advertising Revenue

With viewers shifting to ad-supported streaming services, advertisers are reallocating their budgets away from linear TV and towards digital platforms. This shift is impacting the revenue of traditional broadcasters, who are finding it increasingly difficult to attract the same level of advertising spend as they once did. The digital platforms offer advanced targeting capabilities and detailed analytics, which are highly attractive to advertisers aiming to maximise their return on investment.

Content Strategy

Broadcasters are being forced to rethink their content strategies, investing more in digital and on-demand offerings to remain competitive. The flexibility and variety provided by F.A.S.T. services compel traditional broadcasters to innovate and offer content that resonates with the modern viewer. This includes producing exclusive digital content, creating interactive experiences, and leveraging data analytics to understand viewer preferences better.

Partnerships and Collaborations

To stay relevant, some traditional broadcasters are forming partnerships with F.A.S.T. providers or launching their own streaming services to capture a share of the growing market. These collaborations can help broadcasters expand their reach and offer a more comprehensive content portfolio. By aligning with F.A.S.T. platforms, traditional broadcasters can leverage their technological infrastructure and audience base to enhance their own offerings.

The Canadian linear broadcast providers will face challenges in content licensing and the cost of regional content windows compared to US-based companies like Tubi (owned by Fox Entertainment) and Pluto TV (owned by Paramount with Corus sales and marketing support) whose parent companies produce and own their content globally. Tubi and Pluto currently focus on 'previously loved' and harder to find content. This competitive disadvantage makes it increasingly difficult for Canadian linear broadcasters to compete for the viewership of Canadians and support the multitude of specialty channels with 24-7 content. As media consumption trends towards streaming, F.A.S.T. services are poised for growth, often at the expense of traditional linear television. 

As the category evolves, viewers will prioritise accessing the content they want, over the delivery method.

Television, streaming, and Connected TV (CTV) represent a complex and fragmented space with numerous access points for consumers to find the content they desire. Advertisers require comprehensive strategies to understand the reach, efficiency, and effectiveness of modern 'TV' buying in this dynamic environment.

If you wish to navigate these new waters effectively, contact me at Involved Media. We are here to discuss the market landscape and provide insights on optimising your marketing budgets to achieve maximum impact.