Industry Trends: The Growing Intersection of FAST and SVOD

As the streaming industry continues to evolve, two significant trends are reshaping the landscape: the rise of Free Ad-Supported Streaming TV (FAST) and the maturation of Subscription Video on Demand (SVOD) services. Understanding these trends is crucial for navigating the future of digital entertainment.

The Rise of FAST Services

FAST services are gaining substantial traction, offering viewers a free alternative to traditional pay TV and SVOD services. According to CSI Magazine , FAST channels are now competing head-to-head with major SVOD platforms, capturing significant viewing minutes from traditional giants like Netflix and Disney+.

Key Highlights:

• Increased Engagement: FAST services like Tubi, Pluto TV, and The Roku Channel are capturing a growing share of viewing time, appealing to cost-conscious consumers.
• Original Content: Platforms such as Tubi and Roku are investing in original content to attract and retain viewers.
• Ad Revenue: The influx of advertising dollars is driving innovation in ad-supported streaming, with predictions that FAST ad spending will surpass traditional TV ad spending by 2025

SVOD Trends: Bundling and Market Saturation

The latest research from Ampere Analysis shows the SVOD market in the US is approaching saturation, with 89% of households subscribing to at least one service. However, this high penetration is leading to new strategies to maintain growth and reduce churn.

Bundling trending Services:

• Verizon's +play: Offers discounted bundles of Paramount+ and Netflix.
• Walmart+ and Paramount+: Walmart+ members receive free access to Paramount+ with ads.
• Instacart+ and Peacock: Instacart+ customers enjoy ad-free Peacock.

Market Dynamics:

• Resubscription Trends: 42% of SVOD consumers are "resubscribers," canceling and returning to services based on content availability and promotions.
• Spending Patterns: While some reports suggest a decline in average household spending on SVOD services, others indicate continued growth, reflecting the complex and dynamic nature of the market.

The Future of Streaming: The race has begun!

As both FAST and SVOD services continue to evolve, several key trends are expected to shape the future of streaming. Many viewers are feeling subscription fatigue from juggling multiple services. This move aims to simplify things for viewers, making it easier to access a variety of content without the hassle of multiple subscriptions.

As part of this trend, streaming, media, and tech giants are beginning to combine OTT offerings to create more compelling bundles in order to protect/grow their market shares. For example:

• Increased Bundling/Rebundling: More SVOD services will offer bundled packages to provide better value and reduce churn.
• Content Innovation: Both FAST and SVOD services will continue to invest in original and exclusive content to differentiate themselves in a crowded market
• Ad-Supported Tiers: Major SVOD platforms are introducing ad-supported tiers to attract budget-conscious viewers..

As ad-supported formats continue to outpace the growth and gain share vs. SVOD, it’s likely that we will now see the Streaming Wars fought across multiple fronts — from SVOD to AVOD, FAST, and Hybrid Models.

The Sweet Spot: Sandbox Group's Portfolio Offering

Amidst these industry shifts, the Sandbox Group has positioned itself uniquely with the PlayKids 360 offering. This comprehensive suite meets the versatile needs of families and young learners, seamlessly bridging the gap between SVOD and FAST services.

• PlayKids Learning (SVOD): Offers an extensive library of educational content tailored for young audiences. This platform not only entertains but also enriches children's learning experiences, providing parents with a trusted source of educational material.
• PlayKids TV (FAST): A free, ad-supported channel that provides a variety of engaging and educational content. It caters to the growing demand for free, high-quality children's programming, ensuring accessibility for all families.
• PlayKids+ (App): An all-in-one app that offers interactive games, stories, and videos. PlayKids+ enhances learning through play, fostering creativity and critical thinking in a safe, controlled environment.
• PlayKids Creation (Physical Products): Complements the digital offerings with physical products that encourage hands-on learning and creativity. These products extend the PlayKids experience beyond screens, offering a holistic approach to child development.

Opportunities Ahead

By integrating these diverse offerings, Sandbox Group addresses the industry's pain points: the need for engaging, educational, and accessible content across various platforms. Whether through SVOD, FAST, apps, or physical products, PlayKids provides a versatile solution that meets the evolving needs of families and the industry.

Understanding these trends and leveraging the comprehensive PlayKids 360 offering will be crucial for envolving market and its consumers as they navigate the rapidly changing streaming landscape.

For further reading, you can explore the following links:

• CSI Magazine
• Forbes Streaming Statistics
• PwC Streaming Content Report
• Nielsen Insights