FAST Channel Monetization Explained: How to Maximize Revenue and Manage Costs

As we have approached the StreamTV Show in Denver today, this marks the conclusion of our blog series about the dynamic world of FAST channels in 2025. Our first two articles laid the foundation, exploring FAST channels' growth and global expansion and describing the essential steps to successfully launch and position a channel in today’s crowded media space.

This final article spotlights the economic engine behind FAST: how FAST channel monetization works, the emerging business models shaping revenue streams, and, critically, how content licensing costs, one of the heftiest line items for FAST operators, can be managed smartly without compromising on quality or variety.

Understanding the FAST Ecosystem: Stakeholders, Monetization Tactics, and What Makes a Channel Advertiser-Friendly

The FAST ecosystem is a complex network where multiple players intersect—content owners, channel operators, platform providers, advertisers, and technology vendors—creating synergy to achieve mutual benefit.

Revenue models in FAST vary but generally include the following:

• Revenue share agreements, where platforms and channel owners split ad revenue generated on the channel. This is the most common setup today and is the most optimal option if the channel owners do not have a dedicated ad sales department. The most common setup is 60% to the channel and 40% to the platform, but it depends on a case-by-case basis.

  
  

• Inventory share deals, granting channel owners’ rights to sell a portion of ad slots themselves, providing more control and data visibility.

  
  

• Flat fees or licensing deals, channels pay platforms or vendors a fixed price to distribute content or technology.

  
  

  

Data transparency is crucial for effective monetization as it benefits everyone: channel owners who can plan and program based on numbers and advertisers who can get relevant brands to spend. In general, advertisers are warming to FAST’s potential. 

According to a Comcast Advertising study, around one-third of U.S. advertisers plan to increase FAST ad spending in 2025. This is supported by data from Amagi and One Touch Intelligence, showing double-digit growth in viewing hours and ad impressions, alongside a sharp decline in unfilled ad time—from 42% in early 2023 to 14% by late 2024—improving viewer experience and platform credibility. Geo-targeting precision down to ZIP code levels makes FAST attractive to local and regional advertisers, offering a degree of targeting unmatched by traditional linear TV.

A vital factor repeated across the industry is metadata (yes, again). Rich, detailed metadata doesn’t just help viewers find content; it powers advertisers’ ability to serve relevant ads, enhancing the value of inventory and CPMs.

What Makes a Channel Attractive to Advertisers?

Advertisers look for a mix of quantitative and qualitative signals:

• Strong and growing viewership metrics: total hours watched, average session duration, and repeat visits.

  
  

• Clear branding and identity that aligns with advertiser values and target demographics.

  
  

• Broad and specific channel reach — including key geographic and demographic slices.

  
  

• Content quality and genre relevance that match advertiser targets.

  
  

Advertisers are also keenly interested in audience engagement metrics and the predictability of inventory fill rates, so channels with consistent traffic and low ad slot wastage stand out.

Advertising Formats for FAST Channels in 2025

While traditional pre-, mid-, and post-roll ads are the base, FAST channels increasingly adopt interactive and engaging ad formats. Shoppable ads allow viewers to purchase products seamlessly through their remote controls, lowering the barrier from discovery to purchase. Ad pods with choice offer viewers options during ad breaks, enhancing control and reducing ad fatigue. Clickable overlays provide interactive polls, banners, or calls to action, keeping viewers engaged beyond passive watching.

The latter goes beyond just branded ads. For example, Vizio’s Jump Ads exemplify cross-platform interactivity by inviting viewers at the end of linear TV programs to continue watching via streaming apps. This integration bridges broadcast and OTT and opens new avenues for subscriber acquisition.

Advertisers are still figuring out how to spend their budgets across many platforms, from traditional TV to social media to streaming. That means some ad spots go unsold, leading to empty gaps or repeated ads, which frustrate viewers. However, data shows that unfilled ad time on FAST channels has dropped dramatically in the last two years, smoothing viewer experiences. 

Innovations like Amagi’s “zero slate” technology help with slots that are still unsold. Instead of showing blank screens or doubled ads during unsold ad breaks, the system skips ahead to the show, keeping the viewing experience smooth and reducing the chance viewers switch away.

Sponsored and Branded Content Growing on FAST Channels

Beyond traditional FAST channel advertising, sponsored and branded content models are a meaningful way to generate revenue. For example, Vizio’s branded content studio produces custom shows that integrate brand messages naturally within entertaining content. 

A series called “3 Pointers,” sponsored by sports betting company BetMGM, offers viewers sports-themed recipes and tips while subtly featuring the brand throughout the episodes. Similarly, music network Vevo recently launched a branded series called “Vevo Origin Stories,” which highlights artists’ journeys and is sponsored by Intuit TurboTax. Like Linear TV and VODs, branded content and product placement allow advertisers to connect authentically with audiences.

What about the cost of Launching and Operating a FAST Channel?

Entering the FAST space is surprisingly accessible from a technology standpoint. According to StreamTV Insider, leading FAST tech companies estimate it’s possible to launch a monthly channel for roughly $10,000 — covering tech infrastructure like playout, scheduling, streaming, and ad insertion — excluding content acquisition and staffing.

Dave Bernath from Wurl said that content acquisition remains the highest and most variable cost, particularly for “hook” content such as premieres, live events, and sports—all of which are increasingly demanded by audiences but command premium licensing fees. Live sports, for example, can command CPMs 2-3 times higher than typical FAST content, making it an enticing yet costly investment.

However, expensive premiere and live content can’t stand alone. FAST channels need to backfill with “long-tail” library content to ensure enough hours of programming. Moreover, content must rotate frequently to keep viewers engaged and prevent burnout, as viewers won’t tune in to watch the same episode endlessly, even on nostalgia-driven channels. Continuous refreshment with fresh classic or new titles is critical, and this frequent content rotation requires ongoing licensing, which can strain budgets.

Nowadays these content challenges now have a solution. FAST platforms can use a subscription-style content licensing Content-as-a-Service (CaaS) licensing model designed for VOD and free streaming. Instead of costly, long-term deals for individual titles, this licensing model offers access to a vast, diverse library that can be regularly rotated and refreshed with just one subscription contract.

This approach keeps channels dynamic and engaging, preventing viewer fatigue by swapping titles to match changing tastes. It also reduces the financial and operational strain of traditional licensing, helping balance premium live content with a steady flow of library titles for cost-effective programming.

As competition grows, this flexible content strategy is key to keeping FAST channels attractive to viewers and advertisers while managing costs and maintaining programming agility.

See You at StreamTV Show 2025

FAST channels continue to reshape streaming in 2025 with strong growth, evolving monetization, and more innovative content strategies. Quality programming, interactive ads, and flexible licensing models are driving better viewer engagement and advertiser interest.

Our Content-as-a-Service model was honored to be a finalist for “Innovation in Content Delivery & Distribution” at the upcoming StreamTV Show. Nik Bars and Chris Beaver will be there to network, gather insights, and stay on top of FAST market trends. Come by and say “hi” if you are attending, too!

About allrites

Located in Singapore and globally, allrites is a premier marketplace for buying and selling film, TV, and sports rights. We provide a vast catalog of Film and TV content, from major studios to independent producers, available in any language and genre. Our innovative licensing models, including allrites Content-as-a-Service, offer flexible and efficient content monetization and acquisition solutions, accommodating the evolving needs of content buyers and sellers worldwide.

Want to learn more about our content library, licensing models, or industry trends?

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