There is much talk about FAST channels, but approaching this distribution model without the necessary precautions can be disastrous.

The UK market benefits from the English language, but we already have 100 channels in the Italian language. Hardware manufacturers decide independently and play a crucial role. We are in a good position through the channel down. Perhaps we are talking about a content discovery process that can be easily directed, especially with the evolution of remotes towards models without numbering.

However, thinking of maintaining market position through regulatory interventions (prominence) is a residual position.

RaiPlay is AVOD?

RaiPlay is an AVOD (Advertising Video On Demand) platform that also includes linear broadcast channels, but in our opinion, its entry into the FAST channels market would outperform any competition.

It has repeatedly covered the FAST Channels phenomenon (free ad-supported streaming television) which, in the UK – often ahead of Italy, think only of DAB or Sky – is experiencing a particularly lively moment.

The value of the FAST market in Italy As reported in our recent article, according to Omdia, the current (2023) value of the Italian market is only 50 million dollars but with prospects for doubling by 2027.

The role of Fast Channels Network Therefore, we found it interesting to speak with an Italian startup led by experienced managers who have participated in the launch of major satellite platforms such as Fox. Here is the exclusive interview with Mauro Panella – co-founder & COO – of Fast Channels Network (FCN).

Interview with Mauro Pannella on Fast channels

First, a brief introduction of you and FCN. (Mauro Panella) – I have been in the television industry for 25 years.

I began my career in 1996 with the Arab satellite network Orbit (which was based in Rome and later merged into Orbit Showtime Network, N.d.R). Afterward, I worked for the Organizing Committee of the Turin Olympics and then at Globecast.

Fox In 2006, I joined Fox, where I remained for 13 years until its acquisition by Disney. Initially, I was responsible for starting up operations in CEE, Northern Europe, and North Africa, and later for operations in Italy, France, and Spain. Since 2012, I served as VP Broadcast & Programming Operations for Italy, Germany, and the UK.

Fast Channels Network

FCN Fast Channels Network is the first Italian player dedicated to the world of FAST, with a clear proposition that unfolds in three interconnected directions.

We have an editorial project for a multi-channel FAST brand with international distribution, which will be available on aggregation platforms with a revenue-sharing model. We have defined the catalog and editorial offering for this project, which we will present at MIPcom in October.

Consulting Services Thanks to the expertise of our partners and our network, we offer consulting services for business model creation and validation, content scouting, creative and promotional strategy, advertising optimization, technology selection, and operations management.

Essential Precautions We have firsthand experience confirming that despite much talk about this distribution model, tackling it without the necessary precautions, guided by experience, can be economically disastrous.

One Hundred Channels in Italian Through our network of Fast Channels Network partners, we have access to approximately 100 international channels, also available in the Italian language. These channels are proposed for distribution on Italian and European aggregation platforms, typically following a revenue or inventory sharing model.

The UK Scenario (NL)

Let’s try to frame the Fast Channels phenomenon: in the United Kingdom, there have been a series of announcements, often by traditional networks, while in Italy, it seems that we are still somewhat behind… (M.P.) – Yes, in recent weeks, there have been announcements of the launch of new FAST channels by traditional networks in the UK. To name a few: UKTV with 4 thematic channels on Samsung TV+ and Pluto in the UK, and Channel 4 with 2 FAST channels for distribution in the US – Says-.

The Importance of the Language Clearly, the English-language market has an advantage considering the peculiarities of the FAST model because it does not require dubbing or subtitling of its content.

Diversifying Revenues However, it would be shortsighted not to recognize the clear strategy, including that of the BBC, which involves diversifying revenue, expanding distribution, and positioning their own brand.

Programmatic Advertising The programmatic advertising market on CTV is already very promising in the US, UK, and Germany, and it’s continuously growing in Italy as well.

Italian Interest Interest in this field is certainly present in Italy, and some players have already started making moves.

Italian Market

FCN’s Role Our project aims to support those who want to explore this market in Italy and abroad. We aim to clearly define the risks and opportunities and develop launch strategies that align with each entity’s unique characteristics. It’s in the interest of the Italian TV entertainment industry and FCN to build networks and act promptly to avoid falling behind and having to catch up when it might be too late.

The Share (NL) – However, there’s a general sense that FAST content generates a very modest share. So, where is the business? (M.P.) – I disagree. In more advanced markets, this is not the case. In the USA, as early as Q3 2022, Pluto reached a 1% share of the Total Audience, and from Q2 2023, it was surpassed by Tubi with 1.4%. Considering the scale and competition in the US market, these numbers don’t seem small for entertainment offerings that require significantly lower investments compared to traditional players or OTT/SVOD operators.

FAST Channels vs. SVOD

The FAST channels business will not replace SVOD or traditional TV. It will be complementary and increasingly relevant in a market that has undergone at least two epochal revolutions in the last 15 years with the introduction of streaming first and the subscription model later.

Complementary Offering The complementary role of a free, linear, multi-distributed, self-sustaining, and economically profitable entertainment offering is clear when we observe market signals. The introduction of advertising in SVOD subscriptions, the need for OTT operators to stay relevant, the cost of acquiring new customers, the emergence of new service aggregators, and user frustration in searching for on-demand content.

Reach Furthermore, given the challenges of the traditional advertising market, investors are considering how to differentiate themselves, especially through CTV services. In general, through FAST services, wherever they are consumed, it’s possible to reach an audience that, in many cases, cannot be reached otherwise.

Increasing Investments I agree with those who predict a continued increase in programmatic investments on CTV, even in Italy, mirroring what’s already happening in more mature markets.

Tv manifactures

The Role of TV Manufacturers (NL) – An essential role seems to be played by TV manufacturers. For instance, LG independently decides where to position (let’s say, at what number in their pseudo LCN) the various “channels.” What are the general procedures typically adopted for this selection? (M.P.) – When I spoke about new service aggregators, I was particularly referring to TV manufacturers.

As hardware manufacturers, with the introduction of CTVs and thanks to their operating systems, they define the user experience and have a crucial role in accessing entertainment.

A Negotiation Issue Regarding proprietary platforms with their own applications, of course, the positioning decision is an editorial one that should support the user experience. However, on aggregation platforms and especially on CTVs, usually operating on a revenue-sharing model, numbering becomes a negotiation issue. Naturally, stronger and more relevant brands will have more negotiating power, and this is where the need to position oneself early comes into play.

Content Discovery Apart from this, there’s a thematic logic that aims to facilitate “content discovery,” which should be supported by careful and informed brand and promotion work by the publisher.

An Important Partner This is why we were very pleased when Pino Cormaci, former creative head of Discovery Italy, agreed to become a partner and Creative Director of FCN. With his experience in this field, we can define the right strategy for both our channels and those of our clients.

The issue of channel identifiers (LCN) is relevant

On LG and Samsung, we’re talking about very high numbering. Hasn’t the logical channel numbering of DTT taught us anything? (M.P.) – Definitely relevant, and the numbering is indeed very high. However, you may have noticed that this is precisely why FAST channels on LG and Samsung are often the first channels after Rai Uno. If instead of doing a channel up with the remote, I do a channel down. This makes me think that perhaps we are discussing a content discovery process that can be easily directed, especially with the evolution of remotes towards models without numbering.

Prominence (NL) – On NL, we are paying extreme attention to initiatives for the prominence of general-interest audiovisual media services (i.e., the current FSMA services authorized for DTT) – Says- What is your position on this? (M.P.) – I understand the importance of this issue for traditional TV, but as FCN, we do not have a specific position on it.