"Cable TV Should Target the FAST Market with Locally Focused Content"

Preventing Subscriber Churn and Building New Business Models

There has been a claim that cable TV should prepare to transform into a FAST (Free Ad-Supported Streaming) platform. In the flood of global media, it is necessary for cable TV to grow into a platform with distinctive channels that leverage its regional characteristics.

The Korea Cable TV Broadcasting Association held a seminar on the 14th at the Kim Dae-jung Convention Center in Gwangju, titled "Finding a Way for Pay TV Amid Confusion in the Global Streaming Era."

The Korea Cable TV Broadcasting Association held a seminar on the 14th at the Kim Dae-jung Convention Center in Gwangju Metropolitan City, titled "Finding the Path for Pay TV Amidst Confusion in the Global Streaming Era."
[Photo by Korea Cable TV Broadcasting Association]

FAST is a service that allows viewers to watch live TV channels or VOD (Video On Demand) for free in exchange for watching advertisements. Media experts said, "As the set-top box era ends and cord-cutting (canceling subscriptions and moving to new platforms) accelerates, pay TV operators need new service channels," adding, "FAST, which relies on advertising as its main revenue source, is rapidly growing as the next model for pay TV."

Jang-Hoon Han, CEO of Direct Media Lab, cited Comcast, a US cable TV operator, as an example. He explained that in overseas markets, where pay TV fees are expensive and OTT subscription fees are rapidly increasing, Comcast is implementing a strategy to retain subscribers by launching a relatively affordable FAST + cable TV bundle called 'NOW TV.' Han said, "FAST helps cable TV not only prevent a decline in broadcast subscribers but also build a new business model through increased advertising revenue."

Ok-Sook Ban, senior researcher at the Korea Creative Content Agency, analyzed, "FAST services complement domestic cable broadcasting and are expected to keep viewers from drifting away from TV." Ban emphasized that the key to securing advertising revenue on FAST channels is "content competitiveness." He said a channel (content) differentiation strategy tailored to highly segmented users is necessary. "By providing close-knit content that understands the usage characteristics of regional subscribers, which is a strength of cable TV, service competitiveness can be secured," he said. "In the US, FAST channels delivering regional weather and location-based customized content are already popular."

There was also a claim that if the FAST market grows long-term and is classified as a media platform, it is highly likely to be included in regulatory domains. If this happens, the domestic advertising market will inevitably face limitations, making it necessary to achieve economies of scale through overseas expansion.

During the seminar, proposals for collaboration between cable TV and FAST platforms were also made. Jun-Kyung Park, CEO of New ID, said, "The global distribution network operating about 200 channels on more than 30 major FAST platforms worldwide will help with the global branding of cable TV content," adding, "New ID also expects to secure competitiveness among global FAST operators by receiving high-quality regional content from cable TV."

This content was produced with the assistance of AI translation services.