What to Expect From Disney’s FAST Expansion
Disney entering the free ad-supported streaming TV space has been all the buzz, discussed at both industry events such as Mipcom and a hot topic at business meetings.
Of course, as Variety VIP+ has previously covered, Disney already operates a number of FAST channels, which can be split between national and local ABC news operations distributed across multiple FAST platforms and a revolving door of experiments within the ABC app itself.
Assuming the rumors are true and Disney will be ramping up its FAST offerings to compete at scale with rivals including NBCUniversal and Warner Bros. Discovery, we can analyze its FAST experiment to predict what type of content and channels will be distributed.
Traditionally, Disney has had an aversion to free. It paywalls content, with little escaping save for news — and those who have an antenna to watch ABC — and it’s likely not a coincidence that their entry into Hulu in 2009 saw the launch of the subscription tier there.
But it’s also increasingly difficult to ignore the headwinds of FAST, especially when every other company with a deep content vault has found value in monetizing IP outside of subscription services.
Don’t expect to see channels from Disney-owned brands such as ESPN or FX or kids fare in the first wave. Based on what Disney has been experimenting with, there will be many National Geographic-branded channels sitting alongside recognizable ABC shows including “General Hospital,” “Desperate Housewives” and “Supernanny.”
What can be expected is for the majority of channels to be single IP in nature — as in, based on a single show or franchise. Disney experimenting with channels based on the likes of “Dharma & Greg” and “Desperate Housewives” shows its willingness to dip into the vast ABC library.
The overwhelming majority of FAST channels Disney put on the ABC app between April and October of 2023 were single IP in format. Not only is this smart from a programming perspective, allowing one to launch multiple channels versus a single genre-curated channel, but it takes advantage of the stickiness of single-IP channels.
CRG Global’s analysis of FAST channels available in September 2020 found most (73%) of single-IP channels remained distributed on FAST services three years later, compared with 57% of non-IP channels from the same period. Disney’s decision to lean into this format given the brand appeal it has with consumers is a wise decision to ensure longevity out of the gate.
The initial focus on ABC and National Geographic content is reflected in the genre offerings, with the majority being reality or documentary in nature. Game shows are a great format for FAST due to being content contained in one episode — with such companies as Sony Pictures, Fremantle and Banijay all perfecting their offerings — so it will also not be a surprise to see that format utilized more by Disney.
And then there’s the wealth of scripted content that will find new life on FAST. With NBCUniversal having channels for “Law & Order” and “The Office” on Peacock and CBS finding success with “Blue Bloods” and “CSI” as examples, seeing Disney launch channels for “Scandal” and “Grey’s Anatomy” (even just the older seasons) is both not surprising and a great revenue generator.
The key takeaway here is that Disney has already been active in non-news FAST for a while, clearly perfecting its approach. When the company does move to distribute these on other platforms, perhaps including them within its own SVOD services, don’t be taken in by those saying this is a “new” strategy.
Instead, think of it as a cautious approach from a media giant wanting to make the right plays at the right time.
Gavin Bridge is vice president of media research at CRG Global, where he partners with brands and entertainment companies on devising strategies within the FAST space. Prior to that, he was senior media analyst at Variety VIP+ for four and a half years, where he became an industry thought leader in FAST.
