Analysis: How free streaming is reshaping television’s future while viewers drown in choice

The latest wave of market research finds a television industry undergoing fundamental restructuring, with free ad-supported streaming television (FAST) channels emerging as both a solution to and symptom of viewer fragmentation.

Multiple industry reports from this summer paint a complex picture: audiences are making increasingly calculated decisions about their entertainment spending while simultaneously struggling to navigate an ever-expanding content ecosystem.

The data tells a compelling story of rapid change.

State of FAST: Live programming drives growth amid channel expansion

According to Gracenote’s 2025 “State of Play” report, FAST channels rose 21 percent this year alone, with programming increasing by 11 percent. Comscore’s analysis provides even more evidence of growth, showing total viewing hours across major FAST services surged 43 percent from August 2024 to August 2025.

Parks Associates adds another layer to the picture, reporting that 45 percent of U.S. internet households now watch FAST services, a swift adoption for a category that barely existed five years ago.

This convergence of data might suggest a thriving ecosystem, but the research finds a more nuanced reality of consumer adaptation… and financial strain.

The economics of “free”

Perhaps nothing illustrates the current streaming conundrum better than Bango’s finding that 34 percent of U.S. streaming subscribers are now cutting back on other household expenses to maintain their viewing habits.

The promise of limitless entertainment has collided with economic constraints, forcing consumers to make difficult choices about their entertainment budgets.

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Of course, the rise of FAST channels represents the industry’s response to this economic pressure (and a way to monetize older, underutilized content). 

While the adoption has been impressive, Parks Associates notes potential signs of a plateau in early 2025, suggesting the initial growth phase may be maturing. Yet viewing hours continue to climb.

Comscore’s year-over-year increase in total viewing hours indicates that even if new user acquisition slows, engagement among existing viewers remains strong.

But free comes with a price, and that price is advertising.

The industry has come full circle from the early days of streaming, when ad-free viewing was a primary selling point. Today, 60 percent of consumers say they would accept more ads if it meant larger discounts, according to Bango’s research. This represents a change in consumer psychology, from viewing ads as an intrusion to accepting them as a reasonable trade-off for affordable content.

For FAST channels, this normalization of advertising creates both opportunities and challenges.

On one hand, viewers are more accepting of ads than they were five years ago. On the other, FAST channels must compete with subscription services that can offer both ad-supported and ad-free tiers, giving viewers more control over their viewing experience.

The paradox of infinite choice

The proliferation of FAST channels has exacerbated an already significant problem… content fragmentation.

With Gracenote tracking nearly 2,000 FAST channels globally, viewers face an overwhelming array of choices that paradoxically makes finding something to watch more difficult than ever.

Nearly half of all streaming viewers report that it’s getting harder to find content due to the volume of services available. Americans now spend an average of 12 minutes searching for something to watch, up from 10.5 minutes in 2023. In France, that figure balloons to 26 minutes, nearly half the length of a typical television episode.

Streaming paradox: More options, less clarity in business models

This fragmentation has real consequences for viewer retention.

Forty-nine percent of viewers say they’re likely to cancel a subscription if they can’t find something to watch, rising to 56 percent among viewers aged 25 to 34. For FAST channels, which rely on keeping viewers engaged to generate advertising revenue, this presents an existential challenge.

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And let’s not even talk about fragmentation in sports media rights. Watching a complete NFL season now requires access to multiple services including ABC, NBC, FOX, CBS, ESPN, Amazon Prime Video and Netflix, to name a few.

Redefining the meaning of TV

Perhaps the biggest shift in recent data is the evolving definition of television itself.

Deloitte’s research shows that 41 percent of respondents now equate watching videos on social media with watching television. Among Generation Z, 58 percent watch more social media content than traditional streaming video.

This blurring of boundaries has significant implications for FAST channels (and the local broadcast landscape), which must compete not just with other streaming services but with TikTok, YouTube and Instagram.

The traditional advantages of professional production and curation matter less to audiences who value authenticity and relevance over polish.

Half of Gen Z viewers report feeling a stronger connection to social media creators than to television actors — a shift in parasocial relationships that traditional media companies are only beginning to understand.

So what comes next for television?

The current state of FAST channels and broadcast television consumption continues to highlight an industry in transition (or survival mode).

The rapid growth of FAST services demonstrates consumer demand for free, accessible content. Yet the fragmentation crisis threatens to undermine the very accessibility these services promise. Success in this environment will require more than simply adding channels or content. The data suggests several key imperatives for the industry:

First, discovery and navigation must improve dramatically.

When 55 percent of viewers resort to internet searches to find programs, the industry has failed at one of its most basic functions. The platforms that solve the discovery problem — whether through better recommendation engines, unified guides, or innovative interfaces — will have a significant competitive advantage.

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Second, FAST channels must recognize they’re competing for attention across a broader ecosystem than ever before. The distinction between television, streaming and social video is increasingly meaningless to viewers. FAST channels that embrace this reality and adapt their content strategies accordingly will be better positioned for growth.

Third, the industry must address the sustainability question.

While FAST channels have grown rapidly, Parks Associates’ data suggesting a potential plateau raises questions about long-term viability. As viewers become more selective and subscription services continue to launch ad tiers, FAST channels will need to differentiate beyond just being free.

The rise of FAST channels represents neither the salvation nor the destruction of television, but rather its evolution.

As Paul Larbey of Bango observed, subscribers refuse to give up on streaming — they simply adapt their consumption patterns to economic realities. FAST channels are a key part of that adaptation.

The challenge now is creating a sustainable ecosystem where free, ad-supported content can coexist with premium services while providing viewers with a navigable, enjoyable experience.

The data suggests we’re far from achieving that balance, but the rapid growth and evolution of FAST channels indicate the industry is at least moving in the right direction.