Why is it Worth Protecting FAST Content?

We have seen a debate emerging around the topic of security for Free Ad-Supported Television (FAST)  video services. While these services are very distinct from subscription VOD or live event delivery, where the need for multiple layers of security is well established, there are some general considerations that we think are highly relevant to the delivery value proposition.

The FAST approach to a service lineup is, at least in theory, simple and compelling. Offering a themed series of curated content episodes, supported by a moderate load of advertising content, is a popular option that mimics legacy broadcast and avoids the need for frequent “discover and select” activity in the way that VOD services require. When a service provider offers a range of interrelated FAST services, complete with cross-promotional breaks, it creates the illusion of an old channel-surfing paradigm that is particularly comfortable for many big-screen consumers.

We recently posed a question on LinkedIn asking if DRM was essential for protecting content on FAST channels. The results are not conclusive. 42% of respondents said yes, DRM is essential, while 33% said it is essential sometimes. On the other hand, 14% said DRM is not essential, while 11% were unsure.

Simplicity is clearly the watchword here for providers and consumers. But what are the downside risks for business ventures based on FAST?

Preventing Service Re-casting

Simplicity is certainly a virtue, where any consumer who knows the stream URLs can join the channel and enjoy the content and advertising. And, of course, from an advertising point of view, more consumers means a broader footprint for the promoted brands.

While the content used for such FAST channels may often be “long tail”, there is always a considerable investment by the service operator in the licensing of content,  playout infrastructure, curation, delivery, and promotion of the offering.

Perhaps the slim margins of such businesses suggest that security takes a back seat to broad accessibility. We believe this may be a potentially problematic trade-off. An unprotected content stream can be captured and re-cast almost trivially by a pirate service, where the advertising load that supports the operator's investment is stripped out and replaced with promotions that support the pirate’s revenue stream. The consumer may not even notice the difference between the legitimate and illegitimate operator services. Why would any operator allow for  such revenue loss, where it would be easy to create a much higher barrier to theft of the content and the substitution of the advertising revenue? Adding security for your FAST revenue streams seems to be an easy way to head off such lost opportunities.

Attracting Premium Advertisers

Advertisers will be more confident in using a service if there is no risk of their brand being associated with inappropriate or undesirable material. In an unprotected FAST service, it will not be possible to guarantee that advertising content will be delivered as programmed, putting commercial relationships with the service at high risk.

Conversely, ensuring secure service delivery may enable higher ad premiums to be attained, which would be a considerable upside for service economics.

Competitive Stance with Respect to AVOD/SVODs

The industry generally recognizes that security is vital to the protection and management of service business models. Given the full spectrum of risks to service revenues, most major platforms (Pluto, Tubi, Roku, etc.) often use DRM and other forms of security even for free (that is advertising supported/non-subscription) content.

Content Licensing Requirements

A far from small consideration is that major studios and content owners almost universally mandate DRM protection be used to protect their IP in content licensing agreements. There is often a requirement that the implementation of security should be audited, or be sourced from an audited vendor, especially for higher-value movies and TV shows.

Without adequate security, you may lose access to premium content or face legal risk.

But, What if Marketplace Priorities are Changing?

The media industry is undergoing a shift from studios as the primary producers of monetizable content to what has been called the creator economy. Creators have emerged in lockstep with the rise of social media. And, their perspectives are influencing technology and business models across the media supply chain.

Creators initially prioritize visibility and audience reach. They are less concerned about DRM, as they perceive it as a limitation to achieving those goals. They do have monetization goals, but focus on sponsorships and product placement, with the assumption that the social platform they use will provide the relevant level of security.

However, as these creators become more professional, create paywalls to access their live events, and consider using FAST channels to drive incremental monetization of their content libraries, DRM will once again be a priority as they work to protect their brand. It’s a shift of mindset and priorities.

So, What Does This All Mean?

There certainly seems to be a strong logical business case for protecting revenue streams for all types of commercial streaming service and many reasons to frustrate the illegitimate activities of streaming pirates. This argument certainly seems to apply to FAST services as much as it does to more conventional offerings. Given that robust security is now available through cost-effective and easy to integrate cloud services, doesn’t it make sense to add it to FAST workflows?

Please let us know your feedback via LinkedIn.