One of the prominent streaming services in the US, Disney, announces featuring an ad-supported TV-style channel on its platform. Unlike the streaming service’s initial framework that allows users to watch films and series on demand, the TV channel eliminates the users’ choice and will remain active 24/7. Disney joins the list of Roku, Tubi, and Pluto TV, who previously introduced always-on channels to expand their platform’s visibility and earn through ads.
According to the announcement published by TheInformation, the proposed channel will feature Marvel events, Star Wars, and Pixar-made movies to make viewers stick with it. Notably, only the subscribers can enjoy The upcoming Disney TV channel while seeing advertisements continuously. The streaming industry refers to these TV-styled channels as so-called Fast Ad-supported Streaming Television (FAST).
The report noted that the core purpose of featuring traditional TV channels and pampering users with diverse TV shows is to keep the audience active on the Disney service. Besides, Disney intends to launch multiple channels to offer old and new shows alongside genre-specific channels.
The announcement reads that FAST channels are “part of the broader focus of streaming services to increase the amount of time subscribers spend on their apps, as the industry pivots from trying to sign up more people to trying to actually make money.”
FAST Channels To Become A Broader Trend
Streaming services introducing FAST channels mark the growing popularity of free Ad-supported TV channels. Similarly, viewers are spending more time on Fox-owned Tubi compared to Peacock, Paramount Plus and MAX, according to a Bloomberg report last week. FAST channels prevent the pain of hanging with the search term and thinking about what to watch as it already programms what to show.
Amazon Prime Video is also hosting always-on channels through its FAST Service Freevee. Unlike Disney, which plans to offer its TV channels to subscribers only, Amazon allows everyone to enjoy FAST services through its dedicated app.
Cablefication of streaming platforms will undoubtedly become a broader trend in the coming years. For example, Disney plans to develop a streaming-only ESPN version alongside the live sports package in partnership with Fox, Warner Bros., and Discovery.
Streaming services growth in recent years has minimized the popularity of cable and became a great disrupter of it. With too many streaming platforms entering the market in the last decade, viewers began perceiving cable operators as an expensive and constricting option.
However, the gap between cable and streaming platforms has been narrowed in recent years. Apart from streaming services now adopting TV-styled channels, they are becoming even more expensive than cable. Given the streaming platforms ‘ constant rate hikes, this could push viewers back to cable again.
