FAST channels and content owners are losing half of their gross revenue to the programmatic ecosystem, a topic that few are openly talking about.

LOS ANGELES, CALIFORNIA, UNITED STATES, August 20, 2024 /EINPresswire.com/ — Currently, many Free Ad-Supported Streaming Television (FAST) channels are not fully realizing their revenue potential, earning less than a third of what they could by placing their premium content on platforms such as YouTube. This shortfall is largely due to the presence of multiple middlemen, each taking a portion of the advertising revenue. Curated Connected TV (CTV) platforms and premium FAST channels with strict compliance could earn significantly more, but current structures prevent this.

Kapang has successfully integrated the CTV Supply-Side Platform (SSP), CTV Ad-Exchange and Channel Network components into a unified solution and charges only a single commission or fee. By directly integrating content channels with Demand-Side Platforms (DSPs), existing TV agencies, innovative providers and offering its own direct contracts, Kapang reduces the number of middlemen and secures revenue for broadcasters and platforms that depend on programmatic advertising. This approach brings both parties closer to advertising revenue and supports growth.

Understanding FAST channels

FAST channels are a fast-growing segment of the streaming industry, offering viewers access to a wide range of content without a subscription fee. These channels are supported by advertising, sponsorships and product placements, making them cost-effective for consumers and a valuable opportunity for brands.

Comparison with YouTube channels

YouTube and FAST channels operate on different models in terms of payment terms, revenue generated, and overall control. On YouTube, creators receive 55% of ad revenue, while YouTube keeps 45%. Although there is no open market for programmatic ads or multiple ad sales stakeholders on YouTube, Google handles ad sales and receives a cut before revenue hits the YouTube ecosystem. This streamlined process allows YouTube to offer creators higher revenue, even with lower initial ad values ​​compared to CTV.

Challenges in the FAST Channel ecosystem

The programmatically powered FAST channel ecosystem faces significant challenges, particularly around transparency, revenue sharing, and performance accountability. Both FAST platforms and channels rely on the same monetization sources within the programmatic ecosystem, with the platforms often claiming a significant share of revenue. This imbalance can be detrimental to the channels that bear the financial burden.

Kapang aims to solve these problems by balancing the needs of premium free-to-air (FTA) broadcasters seeking to replace cable and satellite services with FAST. By ensuring a sustainable model, Kapang helps traditional broadcasters achieve a monetization model for premium content similar to YouTube’s success.

Ad-fill issues and revenue recognition

Ad fill, the percentage of advertising opportunities sold in a linear FAST channel, is critical to revenue and viewer experience. Currently, about a third of ads are sold, meaning channels could potentially triple their current revenues if they fully sold ad pods. However, the industry average is low and there is limited incentive for traditional program stakeholders to improve.

Kapang AdX: A comprehensive solution

Kapang AdX aims to target top-tier broadcasters and content studios by providing a more efficient connection between advertisers, viewers and content owners. By offering fair prices to content owners and reducing the number of middlemen, Kapang improves the overall quality and sustainability of FAST channels.

Due to low monetization rates, many FAST channels currently rely on monetizing legacy content. To dominate market share, FAST channels must offer linear TV at the quality of traditional cable TV or better. Kapang AdX addresses the root cause of inefficient advertising revenue realization and ensures that content creators receive a fair share of revenue.

Kapang AdX replaces multiple parties in FAST Channel’s monetization ecosystem, takes only 10% of ad sales, and provides a transparent revenue dashboard. By reclaiming revenue from underperforming partners and providing essential services, Kapang opens the doors for premium broadcasters to join the streaming revolution.

For further information please contact:

Jamie Branson

founder

[email protected]

https://viewtvx.com

Don Cardone
View Television Networks Inc
+1 310-557-6351
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