Free ad-supported television (FAST) platforms like Pluto TV (ViacomCBS) and Tubi (FOX Corp.) have steadily increased their share of streaming viewership over the last handful of years as cord cutting consumers look for alternatives to the cable bundle.
The basic model for these types of services is pretty simple: offer up a potpourri of cheaply acquired content – anything from syndicated shows like Divorce Court, to old Nicolas Cage movies like Gone in 60 Seconds – and sell advertising inventory over top of them.
In addition to on-demand scripted content, FAST platforms offer a variety of live programming on FAST channels, ranging from news content like NBC News Now – where aspiring MSNBC anchors get reps delivering live news to a smaller (and younger) audience – to sports content like CBS Sports HQ, a sports news and highlights network similar to old ESPNews programming, but with more emphasis on gambling.
Altogether, these platforms put together a package of content comparable to the cable bundle, albeit maybe not exactly what the viewer wants. But the content is free, so who can really complain?
The Numbers
Data from February’s edition of Nielsen’s The Gauge indicates that of all television viewing consumption, 34.3% is attributed to streaming, followed by 30.2% for cable, 23.8% for broadcast, and 11.7% for other. In the past year, streaming has overtaken cable as the most popular way to watch TV.
The aforementioned FAST platforms, Tubi and Pluto TV, account for 1.0% and 0.7% of all television viewing consumption respectively. While that might not seem like much, that share is not far off from more well-known services like Peacock (1.0%), HBO Max (1.3%), and Disney+ (1.8%).
For context, YouTube (just regular YouTube, not YouTube TV) and Netflix are the leaders in the category accounting for 7.9% and 7.3% of all television viewing consumption respectively.
Why FAST?
For consumers, FAST platforms offer a free supplement to whatever combination of paid streaming services they subscribe to. For television executives, FAST platforms offer wide distribution for their content (and advertisements) given its practically nonexistent barrier to entry.
This wide reach is why certain live sports properties should consider partnering with FAST platforms. For leagues in their relative infancy like the NWSL, wide distribution on a free and easily accessible platform, in conjunction with a supplemental linear package for their biggest games, could prove to be a spark plug for growth.
The reality is, broadcast networks have limited inventory for smaller leagues to get their foot in the door. Having last season’s NWSL championship on broadcast TV with CBS was certainly great exposure, but it is arguably more important to have regular season games that are widely accessible. Last year, the NWSL was behind a paywall on Paramount+. A move to a FAST platform could mean more viewers.
While some may point to netlettes, such as The CW or ION, as natural fits for NWSL or similar properties given their linear distribution, FAST channels serve the needs of these leagues better. Netlettes offer wide distribution, but are competing for viewers among an audience that is primarily watching via cable or over-the-air antenna, and therefore competing with more established sports properties.
The audience on FAST platforms are different. Data released by Tubi in February indicates that between 46-57% of Tubi viewers in a variety of key streaming demographics do not have a cable subscription. That means – unless they are one of the few to use an over-the-air antenna – access to live sports is almost nonexistent for half of FAST users.
Competition for the eyeballs of sports fans is substantially diminished on a FAST platform as compared to traditional linear television. Since there are fewer options to choose from, a sports fan using a FAST platform likely has a higher propensity to watch a live event, even if they are unfamiliar with the league, than a sports fan watching traditional television.
The Demographics
Tubi cites that 36% of their viewers are in the key younger demographic of 18-34 years old. Additionally, they reach an increasingly multicultural audience with more than 50% growth year-over-year in African American and LGBT audiences, and 25% in the Hispanic audience.
These are demographics that are traditionally difficult for advertisers to reach. Any doubts about how much advertiser’s value these audiences should look no further than Tubi’s soaring valuation. FOX Corp. purchased Tubi in 2020 for a price of $440m. Earlier this year, Bloomberg reported that FOX declined an offer of more than $2b for the FAST platform, more than 4x what the company paid just three years ago.
If there are two things nascent leagues want in their audience, it’s young and diverse – exactly what FAST platforms specialize in. Widespread distribution to a valuable audience would be a solid combo for any sports property, not just growing ones.
CBS Sports Golazo
Last week marked the launch of a new FAST venture from ViacomCBS. Already an early adopter of the FAST model with CBS Sports HQ, the network is doubling down with CBS Sports Golazo. CBS is advertising the FAST channel as a 24/7 location for live soccer content including daily studio shows and crucially, live matches.
For the first time, live sporting events of consequence will be broadcast via a FAST channel. In their first weeks, Golazo will be airing matches from Italian Serie A, Europa League, the top Brazilian and Argentinian leagues, and even “tactical cam” broadcasts of Champions League.
On paper this makes perfect sense. Soccer is a sport whose demographic skews young and multicultural, so there should be plenty of overlap between users of FAST platforms and fans inclined to watch these matches.
Although it’s unlikely we’ll get too much in the way of viewership data for Golazo, keep an eye on how the programming strategy changes over time. Adding more shoulder programming, more live matches – high profile matches especially – would signal success, while cutting back would signal failure.
Either way, the performance of Golazo will go a long way toward determining the future of live sports on FAST platforms. As consumers, we should root for the success of Golazo. In a time of extreme fragmentation in live sports rights, and a never ending list of subscriptions required to watch live games, having access to games for free – no strings attached – is a rarity, and should not go unnoticed.
