At the start of 2025, the Free Ad-Supported Streaming Television (FAST) model was hailed as a golden opportunity in the streaming world. Advertising dollars were pouring in, and the ad-driven monetization strategy attracted a massive audience already burdened by subscription costs.
But this promising era appears to be unraveling, and Amazon’s aggressive tactics deserve much of the blame. The tech giant’s moves have slashed FAST channel ad revenues by a staggering 50%, with no clear bottom in sight.
Amazon’s streaming platform, Prime Video, has flooded the market with an abundance of low-cost ad slots, a strategy that smacks of predatory pricing.
The expectation was that this would spur advertisers to embrace new media platforms, fueling growth in ad-supported subscriptions. Instead, demand has flatlined. Even Amazon, with its vast resources, failed to sell roughly 20% of its ad inventory. Smaller players, unprepared for such steep price cuts, are struggling to compete.
FAST channels are particularly vulnerable. While their audiences continue to grow, their revenues are not keeping pace.
The model relies heavily on ad income, but with Amazon undercutting prices, advertisers are gravitating toward the tech giant’s platform, leaving FAST channels starved for funds. If this trend continues, the FAST ecosystem risks collapsing by year’s end, handing a victory to deep-pocketed competitors like Amazon.
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The implications are stark: Amazon’s dominance in TV advertising could reshape the streaming landscape, sidelining innovative models like FAST and consolidating power among a few tech giants. For FAST channels, survival may hinge on finding new ways to differentiate themselves — or bracing for a brutal market shakeout.
