FAST in Europe: Growth opportunities and market trends

Free streaming television has crashed ashore in Europe. Almost overnight, a flood of new platforms offer audiences thousands of channels without monthly bills. Just as in America, the FAST model proves to be seriously turning heads on the continent.

In the United States, major media giants like Fox and Paramount jumped into the FAST ecosystem with offerings such as Tubi and Pluto TV, fueled by viewers cord-cutting expensive pay television packages. Now, European broadcasters and tech companies want to claim their stake.

According to projections by Statista, revenue in Europe’s FAST market could pass $490 million in 2024. Compare that to America’s $1.3 billion market, which is projected to triple in five years.

Given rapid adoption Stateside, experts predict an impending shakeup of broadcast media across the European Union. Legacy television faces an existential threat from this insurgency of apps and targeted advertising, but what is the current state of FAST in Europe?

Fragmented market, premium potential

Europe’s FAST market remains highly fragmented compared to the consolidation happening stateside.

Samsung TV Plus, Rakuten TV, LG and Rlaxx compete with familiar names including Pluto TV and Freevee.

Almost 1,200 unique FAST channels operate across Britain, France, Germany, Italy and Spain (EU5), run by 243 different channel owners, according to data from the 3Vision FAST Tracker. However, industry data suggests quality is improving. In 2023, Germany saw a 6% bump in new channels, less than past years, indicating a pivot from quantity to quality programming.

Global forecasters predict such premium content will drive Europe’s FAST ecosystem.

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Fast4EU, an industry consortium, estimates regional revenue share could rise from 17% to 22% in the next five years. As a benchmark, North American FAST revenues are forecasted to grow from $1.3 billion in 2023 to $3.8 billion by 2029.

Ad dollars, however, reflect this fragmentation with CPMs reflecting a wide range across the EU5. 

Opportunities and open questions for European broadcasters

Advocates pitch FAST’s free streaming experience as the best of both worlds compared to subscribers’ frustration over complex channel bundles and expensive pay television. FAST allows cost-conscious viewers, especially younger demographics, access to desirable shows supported by highly targeted ads.

According to data from MNTN Research, Gen Z viewers spend nearly three times more time on streaming than cable, with millennials watching nearly twice as much on streaming vs cable. 

However, FAST faces immense challenges before it graduates from niche disruptor to mainstream television alternative across Europe’s diverse cultural and regulatory landscape. The cost of traditional pay TV remains relatively low in many areas. Established broadcasters still dominate market share in their regions.

Some analysts question whether ad-based financial models can sustain quality programming over the long-term without eventually phasing in subscriber fees like popular streamers such as Netflix or Disney+.

Ripe for consolidation

Assuming FAST platforms grow as envisioned, industry observers forecast inevitable consolidation among the crowded field of channel providers and networks.

Currently, 243 different channel owners operate across Europe’s five biggest economies. Production costs incentivize economies of scale for studios serving continental audiences. Advertisers gravitate toward outlets with growing reach.

Regulators play a pivotal role too. Thus far, no unified policy framework exists across the European Union’s 27 member countries. Analysts view cohesive rules and incentives as necessary for the industry to spread its wings.

Until then, expect a patchwork evolution.

Established brands and pay television operators may continue to launch FAST offshoots to hedge bets, with Tier 1 Content Owners rapidly increasing offerings. However, nimble startups will continue leveraging apps and connected devices to foster grassroots audiences.

FAST’s flexibility fits Europe’s varied cultures and regulations. However, growing pains remain inevitable. Near-term forecasts are rosy on paper. But long-term outcomes hinge on strategic vision. Executives must weigh short-term metrics versus lasting brands and consumer loyalty.

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Europe’s free ad-supported television market has entered an embryonic stage of risk, competition and opportunity. Savvy leaders can grasp lessons from America’s rapid growth. Europe’s diverse landscape means change will emerge in fits and starts. But make no mistake − momentum builds towards a crossroads that may redefine our viewing experience.

Key factors for future FAST success

For FAST to succeed in Europe, providers must grasp the competitive landscape and understand how to differentiate. Major broadcasters still command viewer loyalty across many European nations.

Luring audiences requires offering quality programming that resonates locally. This demands significant investments in localized content production and marketing. Many questions remain regarding how effectively small startups can compete here.

There also exists skepticism about whether FAST can fully recreate the linear television experience audiences still covet. The ability to quickly flip channels and easily discover content proves a key factor. Providers focused purely on centralizing shows within apps face challenges. Integration with existing channel guides provides one potential bridge until viewing habits evolve.

Furthermore, regulation plays a decisive role in the speed of FAST adoption. Policymakers want to ensure a competitive balance between public broadcasters and private companies. There exists debate around mandating minimum content quotas. Approaches vary widely depending on local sensibilities and existing media landscapes.

Securing continental reach means mastering nuanced regulatory environments market-by-market. Savvy leaders should engage openly with public stakeholders. Those taking initial steps may target nations with lower barriers to entry and runway to build audiences.

Industry insiders expect the next year pivotal for Europe’s FAST future. Significant funding currently flows into the space. Leading media conglomerates have begun buying smaller channel networks to jumpstart their streaming presences. Additional mergers likely lie ahead.

For new entrants, the coming months represent a precarious but promising window. The ability to secure first-mover advantage and early market share provides rewards for those acting decisively. However, the long runway ahead means focusing on sustainability rather than short-sighted growth alone.