LONDON—Free ad-supported streaming TV (FAST) channels are set to produce revenues of $6.3 billion in 2023, with about 80% of that figure coming from the U.S., according to new research from Omdia.
While the U.S. currently dominates the market, Omdia found that the U.K., Canada, and Australia are major growth contenders with rapid expansion expected over the next four years.
The study also found that the U.K., Canada, Australia, Germany, Brazil, Italy, Mexico, France, Spain, and Sweden are the top ten non-US markets poised for growth. While the US will continue to dominate the market, a $1.6 billion revenue opportunity will emerge for FAST channels outside of the US by 2027.
"Although three of the five-largest FAST markets are English-speaking nations, Canada, Germany, and Brazil, in third, fourth and fifth place, respectively, will offer mainstream FAST opportunities for non-English content,” according to Maria Rua Aguete senior director at Omdia.
Earlier this year, Omdia reported that FAST revenue grew almost 20 times between 2019 and 2022, and is set to triple between 2022 and 2027 to reach $12 billion. Much of this growth will be driven by the U.S., which currently accounts for almost 90% of the global FAST channel market value. By 2027, the U.S. FAST channel market will exceed $10 billion in revenue.
The U.K. and Canada, which enjoy a significant overspill of content from the U.S., will have FAST markets worth over $500 million and $300 million, respectively, by 2027.
Meanwhile, Omdia forecasts that FAST channels in Germany will generate just over $200 million in 2027, when those in Brazil will hit revenues of $100 million – representing around half of the total Latin American FAST market, which will be worth $207 million in 2027. FAST revenue in Mexico will be $93 million in 2027, making it the seventh-largest individual FAST market.
"$12 billion in revenues for FAST channels is impressive, but when viewed in the wider context of online video, social video remains the growth story for the next five years. FAST channels are another window to monetize content but not the only one," concludes Rua Aguete.
