FAST Channels and content owners are losing half of their gross revenue to the programmatic ecosystem, an issue that few openly discuss.

LOS ANGELES, CALIFORNIA, UNITED STATES, August 20, 2024 /EINPresswire.com/ -- Currently, many Free Ad-Supported Streaming Television (FAST) channels are not maximizing their revenue potential, earning less than a third of what they could by placing their premium content on platforms like YouTube. This shortfall is largely due to the presence of multiple intermediaries, each taking a portion of the ad revenue. Curated Connected TV (CTV) platforms and premium FAST channels with strict compliance have the potential to 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, taking only a single commission or fee. By directly engaging content channels with Demand-Side Platforms (DSPs), existing TV agencies, innovative providers, and offering its own direct deals, Kapang reduces the number of intermediaries and reclaims revenues for broadcasters and platforms dependent on programmatic advertising. This approach brings both parties closer to the advertising revenue and supports growth.

Understanding FAST Channels

FAST channels are a rapidly growing segment of the streaming industry, offering viewers access to a wide range of content without a subscription fee. These channels are supported by advertisements, 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 regarding payment terms, revenue earned, and overall control. On YouTube, creators receive 55% of ad revenue, while YouTube retains 45%. Although YouTube does not have an open market for programmatic ads or multiple ad-sales stakeholders, Google handles ad sales and takes a share before the revenue reaches the YouTube ecosystem. This streamlined process allows YouTube to offer higher revenues to creators, 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 in terms of transparency, revenue sharing, and performance accountability. Both FAST platforms and channels rely on the same monetization sources within the programmatic ecosystem, with platforms often demanding a substantial portion of the revenue. This imbalance can be detrimental to channels, which bear the financial strain.

Kapang aims to address these issues by aligning the demands of premium Free-to-Air (FTA) broadcast channels seeking to replace cable and satellite services with FAST. By ensuring a sustainable model, Kapang supports traditional broadcasters in achieving a premium content monetization model similar to YouTube's success.

Ad-Fill Issues and Revenue Realization

Ad-fill, the percentage of ad opportunities sold within a linear FAST channel, is crucial for revenue and viewer experience. Currently, around one-third of ads are sold, meaning channels could potentially triple their current revenues with full ad-pod sales. However, the industry average is low, and there are limited incentives for traditional programmatic stakeholders to improve.

Kapang AdX: A Comprehensive Solution

Kapang AdX aims to attract top-tier broadcasters and content studios by offering a more efficient connection between advertisers, audiences, and content owners. By providing fair rates for content owners and reducing the number of intermediaries, Kapang enhances the overall quality and sustainability of FAST channels.

Currently, many FAST channels rely on monetizing older content due to low monetization rates. To dominate market share, FAST channels must deliver linear TV at or above traditional cable quality. Kapang AdX addresses the root cause of inefficient ad-revenue realization, ensuring content creators receive a fair share of the revenue.

Kapang AdX replaces multiple parties in the FAST channel monetization ecosystem, taking only 10% on ad sales while providing a transparent revenue dashboard. By reclaiming revenues from underperforming partners and delivering essential services, Kapang opens the doors for premium broadcasters to join the streaming revolution.

For more information, please contact:

Jamie Branson

Founder

jamie.branson@viewtvx.com

https://viewtvx.com

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