By adopting the revenue sharing business model for FAST channels, you, as editor, renounce control over how your ad inventory is managed by the platform provider.
As Paul Coster, founder and CEO of UK-based VOD365, which owns FAST channel Ketchup TV points out: “That leaves your destiny in their hands, and if they aren’t filling the inventory, that is really a concerning point” (https://kidscreen.com/2023/05/04/breaking-down-fast-business-models/ ).
It’s concerning because you’ll have inventory that’s not generating revenue, but longer-term damage will be wrought on the viewer experience: once your viewers tune-in to find that your proposing an ad break of 2 minutes with, let’s say, only a single 15” ad inserted and with the remaining 1 minute 45” “filled” with “ever-green” material or repeated ads, they won’t have an incentive to stay tuned to arrive at the next program segment and, worst still, might switch channel and not return.
What’s the solution? It’s not a straight-forward path, but setting out your editorial requirements from the beginning of contractual discussions (in terms of how that empty inventory will be managed, what material will be used to fill and who gets to decide that) might help shape clearer terms and lines of responsibility which will enable editors to balance ad revenue with viewer engagement. Optimizing this balance is in the interests of all parties.
Get in touch for more information on optimizing ad and promotional inventory on FASTchannels: tuckermedia.eu@gmail.com