Ad-Supported Free Streaming 'FAST' Sees Rapid Global Growth... Korea Still in Early Stages [FAST Report]

An $8.6 Billion Market in North America and Europe
Localization Challenges Remain Despite Expanded Investments by Samsung and LG

Choi Hwiyoung, Minister of Culture, Sports and Tourism (second from the right), attended the opening ceremony of the "2025 International Broadcasting and Video Market (BCWW)" held at COEX on the 17th, touring company booths and greeting officials. [Ministry of Culture, Sports and Tourism]

Editor's NoteFAST is rapidly growing in the global media market. FAST stands for "Free Ad-Supported Streaming TV," meaning free streaming TV based on advertising. It generates revenue through targeted ads while providing linear TV programming for free via internet-based streaming. While it has become a major platform in North America and Europe, FAST has yet to achieve significant results in Korea. The recently concluded "2025 International Broadcasting and Video Market (BCWW)" on September 19 compared FAST's global growth with the limitations of the Korean market, discussing a range of implications.

The reasons why FAST is attracting attention are clear. As OTT subscription fees rise, consumers are showing increased interest in free content. In North America and Europe, it has already become a mainstream platform, securing a stable viewership, particularly among middle-aged and older audiences. Last year, the global FAST channel market was valued at 8.6 billion dollars (approximately 12 trillion won). By 2030, it is projected to exceed 18.8 billion dollars (about 26 trillion won). Market Research forecasts an average annual growth rate of 13.9% (2024-2030), while Allied Market Research projects 15.4% (2023-2032).

The fastest-growing country is the United States, where the market reached 2.4 billion dollars (about 3 trillion won) last year. Canela Media, a leading company in the sector, succeeded with a strategy targeting the Latino community. Nester Islava Nunez, Vice President, explained, "We were able to expand our business by increasing customized programming in response to the enthusiastic reaction from Hispanic viewers and by placing Spanish-language ads." He added, "Since there are many family viewers, advertising effectiveness is high." He further stated, "Rather than simply scaling up, we focused on increasing loyalty. Predicting viewers' purchasing behavior through personalized ads and AI-based data analysis was crucial."

Nester Islava Nunez, Vice President of Canela Media [Korea Creative Content Agency]

According to Gracenote, a subsidiary of Nielsen, the number of FAST channels worldwide has increased by 76% since 2023, now reaching between 1,600 and 1,850 channels. Most broadcast content produced after 2010. By genre, news and commentary, reality, and sports stand out. The situation is different in Korea. With strong positions held by existing paid subscription services such as Netflix and Tving, FAST has limited room to enter the market. Kim Junghoon, Principal Researcher for HE Advertising Business Development at LG Electronics, stated, "There is no clear target group, and competition among OTT services is intense. There are also many constraints in terms of market size, investment conditions, and the structure of content production and distribution." He added, "It is difficult to meet the expectations of domestic viewers with only free services and advertising models. Higher content quality and more accurate recommendations are required."

The potential of the Korean market is considered significant, as Samsung and LG lead the smart TV market. The domestic smart TV penetration rate is 76%. Samsung and LG each operate "Samsung TV Plus" and "LG Channel," supplying more than 110 channels each both domestically and internationally. Telecommunications companies and content providers are also offering channels on these platforms, expanding beyond TV to mobile and PC. According to the Korea Broadcast Advertising Corporation's report "Current Status and Prospects of the FAST Business" released last year, the domestic FAST market could grow to 1.2105 trillion won by 2028. The driving force is aggressive investment by global smart TV leaders. Samsung has committed to investing 1.5 trillion won, and LG over 1 trillion won in content. Both companies are actively securing original, live, and sports content.

Sidonie Dumas Gomont CEO [Korea Creative Content Agency]

The key issue is developing an advertising revenue model. Sidonie Dumas, CEO of the French film company Gomont, said, "In North America and Europe, rapid expansion of advertising models and genre-specific channels is driving market growth." Jeong Injun, Head of Advertising Business at Motive Intelligence, stated, "Content creators are compensated through minimum revenue guarantees or various sharing methods, but ultimately, advertising is the source of revenue." He emphasized, "We need to change our strategies by figuring out what ads to deliver to viewers, how to deliver them, and how to approach them in a personalized way using data." As a representative example, he cited cross-device matching technology, which connects mobile and TV data. This approach delivers tailored messages to specific viewers by reflecting regional weather or real-time event data in advertisements. However, immediate implementation is difficult due to limitations such as data usage and regulations.

Industry officials visiting the FAST booth at the 2025 International Broadcasting and Video Market (BCWW) [Korea Creative Content Agency]

Overseas Connected TV (CTV) services have enhanced both viewing experience and revenue by expanding smart TV adoption, transitioning to cloud platforms, and offering live sports and premium content. Tom Parsons, Senior Director of Sales and Business Development at Amagi, explained, "FAST and CTV services maximize revenue from both advertising and subscriptions by providing a consistent experience across various devices."

In contrast, Korea faces obstacles such as IPTV-centric viewing habits, a preference for premium content, limited use of advertising data, and legal and institutional regulations. Industry experts agree that for FAST and CTV to become established in Korea, strategies must go beyond platform building to simultaneously satisfy personalized viewing experiences and advertising efficiency. They stress the need for local strategies optimized for domestic viewer behavior and industry structure, even while adopting global technologies.

Youngshin Cho, CEO of Media Lab [Korea Creative Content Agency]

Youngshin Cho, CEO of Media Lab, commented, "Interest in FAST is high in Korea as well, but both the domestic environment and global trends must be considered." He advised, "Simply copying successful overseas cases will not make market entry easy. A strategic approach based on analyzing consumer media consumption patterns is necessary."