Why build a FAST channel: The business case for streaming

Guy Tasaka

The question isn’t whether you can afford to start a FAST channel — it’s whether you can afford not to. In an era where audiences expect content on their terms, FAST channels let you meet them where they are.”

Guy Tasaka, founder and managing partner of Tasaka Digital

In today’s media landscape, video consumption is exploding. The Paris Olympics, the most-streamed in history at 82% higher than the 2021 Tokyo Olympics, proves that digital video is the present, not the future.

This shift presents a unique opportunity for local newspaper publishers: FAST channels.

FAST (Free Ad-supported Streaming Television) offers a linear, TV-like experience streamed over the internet. It delivers content 24/7, like traditional TV, with digital platforms’ flexibility and reach. If you’re not using an antenna or old cable box, you’re likely already watching FAST channels without realizing it.

I’ve long advocated for non-broadcast, local media publishers to leverage streaming video. According to Forbes, Americans spend 21 hours weekly streaming digital media, and 99% of U.S. households pay for at least one streaming service.

This strategy aligns with Local Media 3.0, breaking down traditional swim lanes. Newspaper publishers aren’t just print entities anymore; they’re comprehensive local information providers. FAST channels are another avenue to serve your community and monetize content.

Why local newspaper publishers should care

1. Relevance and brand extension: Reach audiences on streaming platforms.
2. New revenue streams: Combat declining print revenue.
3. Younger audiences: Attract future readership/audiences.
4. Content repurposing: Maximize existing content value.
5. Local focus: Serve your specific community.

The FAST business model: It’s all about math

Here’s the math behind a FAST channel, let's break it down:

• A FAST channel runs 24/7, offering 730 streaming hours monthly.
• Assume 24 ad opportunities per hour.
• That's 17,520 ad opportunities/slots per viewer per month.

With 200 concurrent viewers:

• 17,520 ad slots x 200 viewers = 3.5 million ad opportunities
• Selling 25% of inventory at $40 CPM, and 30% of remaining inventory programmatically at $10 CPM, you could earn $43,000/month or $515,000/year.

To achieve 200 concurrent viewers, you'd need about 9,733 unique monthly viewers (assuming an average viewing of one hour daily, 15 days monthly). This is achievable for many local newspapers.

While programmatic advertising is tempting, don’t rely on it exclusively. Consider the “dollar a holler” strategy from early radio days, selling ads at $1 per spot. With over 17,000 monthly ad spots, this approach could be lucrative with smaller audiences.

Infrastructure: Simpler than you think

You don’t need to start with expensive equipment or a server room. Here’s what you do need:

1. Playout system: This stores your video and creates the stream. Software like a very basic InstaPlayout (around $200) can run on a decent gaming PC with a GPU.
2. Content Distribution Network (CDN): 5CentsCDN is a cost-effective option I’ve used for over a decade. This prepares the signal and delivers the stream over the internet.
3. Decent internet connection: You only send one stream to the CDN. I ran two FAST channels from my home office for three years flawlessly.

This lean setup aligns with Local Media 3.0's principle of doing more with less.

Cost breakdown:

Upfront costs can be under $1,000, with monthly expenses around $100. Compare this to traditional broadcast infrastructure costing $100,000+.

Key cost factors:

1. Video quality (bitrate): Quality of the streams you create.
2. Number of streams (for different devices): Number of target devices/profiles you create. You likely need 3 — mobile, desktop and CTV.
3. Bandwidth for delivery: Shop around for competitive delivery rates. Current reasonable bandwidth pricing is $0.03-0.05 per gigabyte.

These are variable costs that go up based on your number of viewers.

You will also need CTV apps. Roku and FireTV/Android are the most popular in the U.S. There is no charge for submitting your app to the various stores. In 2024, several companies serving the local media market provide CTV apps, including Telvue and BLOX Digital.

Getting started: Crawl, walk, run

Start small and simple:

1. Use affordable playout software.
2. Leverage existing content.
3. Focus on one quality stream initially.

As you grow, scale up infrastructure and content. This approach minimizes financial risk.

If you want to jump straight to walking and want an intermediate solution, consider Telvue, a market leader in PEG (public, education and government) playout infrastructure. We used them at Calkins a decade ago. I would highly recommend you look at them for the best intermediate solution. 

Content strategy: Think beyond news

While news is a natural fit for local media, it shouldn’t be your sole focus for a FAST channel. Remember, news is expensive to produce and has a short shelf life. 

Consider:

1. Community spotlights: Local businesses, events and personalities.
2. Evergreen content: Remains relevant over time.
3. Local sports: High school and community games.
4. Cultural programming: Local arts, music and history.
5. Local YouTube creators: There are a lot of them, and they would benefit from the local association and audience. They may ask you to hook them up with some of your advertisers for sponsorship dollars.

This diverse approach keeps production costs manageable and broadens audience appeal.

Monetization beyond traditional ads

FAST channels offer various monetization opportunities:

1. Sponsored content: Create branded segments or shows with local businesses. The old radio strategy of selling time, not ads, comes into play.
2. Cross-promotion: Drive subscriptions to print or digital products.
3. Event streaming: Offer pay-per-view for special local events.
4. Data insights: Inform overall content and advertising strategies. Audience tracking is key to understanding monetization opportunities.

Overcoming common objections

Address internal resistance with these responses:

1. “We’re not a TV station:” You’re a local information provider; video is just another medium.
2. “We don’t have enough content:” Start by repurposing existing content and gradually build your library. Don't go it alone; find other local creators and use their content.
3. “It’s too technically complex:” Modern solutions make it simpler than ever.
4. “We can’t compete with big media:” Your local focus is your strength, offering content national and regional players can’t.

The bottom line

FAST channels allow local newspaper publishers to:

• Extend their brand into video.
• Tap new revenue streams.
• Reach younger audiences.
• Leverage existing content.
• Stay relevant in a changing media landscape.

With low entry costs and significant upside potential, FAST channels embody Local Media 3.0 — innovative, multi-platform and community-focused.

The question isn’t whether you can afford to start a FAST channel — it’s whether you can afford not to. In an era where audiences expect content on their terms, FAST channels let you meet them where they are.

Ready to step into the streaming world? Your next big revenue source might be a FAST channel away. It’s time to think beyond traditional boundaries and embrace your local media brand’s full potential.

Guy Tasaka is a seasoned media professional with a 35-year track record of leading change in the industry. He has collaborated with renowned organizations such as Macworld Magazine, Ziff-Davis and The New York Times, where he honed his expertise in research, strategy, marketing and product management. As the former chief digital officer at Calkins Media, Guy was acknowledged as the Local Media Association's Innovator of the Year for his work in advancing OTT and digital video platforms for local news organizations. He is also the founder and managing partner of Tasaka Digital, specializing in helping media and technology companies navigate business transformations using his extensive experience and forward-thinking approach. Guy can be reached at guy@tasakadigital.com.