Free Ad-Supported Streaming TV: What Marketers Need to Know

Streaming services have long been seen as a more cost-effective alternative to traditional cable TV packages. But after years of economic uncertainty and rising living costs, paying for programming is no longer making the cut, and viewers are looking for ways to reduce what they’re paying to consume content. If that means watching a few ads, well, bring it on.

According to the New York Times, there were 93 million ad-supported subscriptions in the US at the end of 2023, and 56% of new streaming service subscribers chose a lower-priced ad tier in the first quarter of 2024 (an increase of 39% from a year earlier).

To date, nearly every major streaming service has introduced an ad-supported tier, decreasing the flow of subscription cancellations while increasing revenue. 

But there’s a whole subset of consumers who are tired of paying for multiple streaming services (or don’t want to pay at all), and for that, they’re turning to free ad-supported streaming television (FAST).

What Is FAST?

Free ad-supported TV is a streaming service category that provides viewers with access to linear television and video-on-demand programming. Unlike traditional streaming services, viewers don’t have to sign up and pay for a subscription. Users can stream content for free. The only catch is that they have to watch more ads, similar to over-the-air and cable TV.

Once a niche, FAST streaming services now represent 4.1% of the entire TV viewership market (that’s more than Amazon Prime Video), with one-third of the US population expected to use a FAST service at least once per month in 2024.

With such a big audience and so much inventory, marketers are beginning to realize FAST’s full potential and how it can be used as part of a multi-channel or connected TV (CTV) marketing strategy to achieve more scale while remaining efficient with their ad spend.

How FAST Works

FAST streaming services provide viewers with access to a variety of linear TV and on-demand content—including TV shows, movies, news, and live sports—directly through their smart TVs or over-the-top devices. 

Viewers can access streaming services by either downloading an app or accessing it directly from their home screen (many FAST services, like the Roku Channel or Samsung TV Plus, come pre-loaded in select smart TVs and CTV devices).

Some FAST streaming services and channels are dedicated to a specific show or category, airing reruns and curated content on a linear schedule 24 hours a day. Viewers can select what they want to watch from a channel guide, and ads are shown at set times, often before or after programming and during traditional commercial breaks, similar to cable or satellite TV.

Other streaming services offer an on-demand or hybrid viewing experience, allowing viewers to select from a library of titles in addition to streaming linear programming. Ads are dynamically inserted into the content, with advertisers targeting users based on their demographics, viewing behaviours, and geolocations.

Differences From Other Streaming Models

FAST’s content and commercial breaks resemble other streaming models and traditional TV, but here’s a quick overview of their key similarities and differences:

• Linear TV is a traditional television format delivered via cable, over-the-air or satellite, where viewers watch scheduled programs on specific channels at designated times. It typically includes commercial breaks shown before, during, or after broadcasts. 
• SVOD (subscription video on demand) services like Netflix and Disney+ require a monthly or annual subscription fee to view their content. They provide access to content on-demand and don’t show ads to viewers who subscribe to ad-free plans. 
• AVOD (ad-supported video on demand) is a subset of SVOD that lets viewers watch content at a lower cost by showing them a certain number of ads during streaming. Most major streamers now provide lower-priced, ad-supported tiers (with the exception of Apple TV+).
• FAST is a subset of AVOD. It offers linear and on-demand programming and is completely ad-supported. Viewers don’t pay, but watch more ads in exchange.

Popular FAST Platforms

Major media conglomerates, technology companies, and TV device makers are all getting in on FAST.

According to Nielsen, some of the most popular FAST platforms include Tubi, the Roku Channel, and Pluto TV. Other examples of popular FAST platforms include Samsung TV Plus, Xumo Play, Vudu, Plex, LG Channels, Vizio WatchFree+, Freevee, and BBC iPlayer.

Benefits and Features of Streaming With FAST

Despite a plethora of premium options, FAST continues to be a hit with streamers. Here are four of the reasons why:

Accessibility and Affordability

Because revenue is generated entirely through advertising, FAST platforms don’t require monthly subscriptions to use their services. Users don’t have to log in, and many FAST services come pre-installed on smart TVs and devices, making it more accessible for many viewers.

Easy Transition from Linear TV and SVOD

FAST platforms provide user experiences and programming that are familiar to anyone who’s watched traditional linear TV or used a subscription-based streaming service before. Live and scheduled programming can be accessed from channel guides similar to traditional cable and satellite services or select TV shows and movies to watch on-demand. FAST platforms can also be accessed from various devices, including smart TVs, smartphones, and tablets. All you need is an internet connection.

Quality Programming

Unlike paid-for subscription services, which provide access to lots of original content, FAST platforms are often unfairly mischaracterized as being a dumping ground for classic TV shows and movies. Although much of the content on FAST streaming services is licensed content, research shows that the average person prefers to watch acquired content (between August 26 and September 1, 2024, the most streamed TV show in the US was Prison Break, a show whose original run ended in 2009). Plus, because FAST platforms don’t rely on dual revenue streams, they’re forced to update their programming more often to appeal to more viewers and incentivize them to watch for longer periods of time.

Broad Reach

According to Goldman Sachs and other media analysts, because “cord never” members of millennial and Gen-Z cohorts (i.e., people who have never signed up for cable before) and older generations both stream content through FAST services, advertisers can gain access to a broader audience than traditional cable or paid-for streaming services alone.

FAST Trends: Reasons Behind Its Adoption and Growth

In 2018, only about 10% of the US population regularly streamed content through a FAST service. 

Fast-forward seven years, and nearly 115.6 million Americans are expected to use a FAST service at least once per month in 2025. By 2028, that number will increase by 12.47%, with 35.8% of Americans projected to stream content through a FAST platform.

According to EMARKETER, part of the reason why FAST viewership has grown so much is because smart TV makers continue embedding FASTs into their operating systems, making it easy for viewers to access FAST services the second they turn on their TV.

The cost of streaming services is another factor. Recent research found that 63% of viewers were likely to sign up for a streaming subscription service to watch a specific TV show or movie and then cancel or pause their subscription shortly after watching it.

Whatever the reasons for its growth, marketers are paying attention. According to The Hollywood Reporter, FAST US ad revenues will reach $6 billion USD in 2025. Although FAST revenues in Europe are expected to reach only a fraction of that (€570 million) by the end of 2024, global FAST ad revenues are forecasted to reach $18 billion USD in 2028.

Advertising Opportunities With FAST

FAST is lowering the barriers to entry, not just for viewers but also for marketers looking to get into CTV or complement their existing campaigns.

Digiday reports that CPMs for FAST inventory are often more affordable than premium options, running between $10 to $12 USD per 1,000 impressions, compared to upwards of $40 USD for top-tier publishers like Netflix. This makes it easy for smaller brands and businesses, like local car dealerships, to access inventory and experiment with CTV.

Meanwhile, the share of time is expected to increase as premium publishers continue to pullback on original content (only 516 original scripted TV series were released in the US in 2023 compared to 600 the year prior), shifting viewers’ focus more toward feel-good content and classic TV shows, which FAST services prioritize with their programming.

But it’s not all about nostalgia. Live sports increasingly are being added to ad-supported streaming services like Amazon Prime Video and Peacock, as well as FAST services like The Roku Channel, which recently inked deals with the MLB and NBA to showcase in-game highlights, interviews, and original programming.

Although top-tier publishers shouldn’t be ignored, it’s clear that FAST platforms are making it easier for advertisers to access niche audiences, incremental reach, and more scale than premium publishers alone.

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