Omdia sees FAST channel revenue reaching $6.3bn in 2023

By NewscastStudio

A new report from Omdia estimates that free ad-supported streaming television (FAST) channels are set to generate $6.3 billion in revenues by 2023, with the US market accounting for 80% of these earnings.

The research also highlights rapid growth in the United Kingdom, Canada, and Australia, with a potential $1.6 billion revenue opportunity for FAST channels outside the US by 2027.

Maria Rua Aguete of Omdia noted that while English-speaking countries account for three of the five largest FAST markets, countries like Canada, Germany, and Brazil are emerging as significant players for non-English content.

Omdia previously reported a nearly 20-fold increase in FAST revenue between 2019 and 2022 and predicts the market will triple between 2022 and 2027, reaching $12 billion. The US is expected to remain the dominant force, with its FAST channel market surpassing $10 billion in revenue by 2027.

The UK and Canada, benefiting from a considerable influx of content from the US, will see their FAST markets grow to over $500 million and $300 million, respectively, by 2027. Meanwhile, Germany’s FAST channels are projected to generate just over $200 million by the same year, with Brazil’s market reaching $100 million – approximately half of the total Latin American FAST market, valued at $207 million in 2027. Mexico’s FAST revenue is expected to reach $93 million in 2027, making it the seventh-largest individual market.

“$12bn 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,” said Rua Aguete.