FAST Takes Off as Viewers Tire of Paid Subscriptions... "Set to Grow into a 47 Trillion Won Market"

"Policy Support for Overseas Distribution Needed"

As free ad-supported streaming television (FAST), which lets viewers watch content free of charge without a paid subscription, rapidly emerges as a new mainstream force in the global media market, calls are growing for urgent policy support based on global distribution to ensure the sustainable growth of Korea's media ecosystem.

David Salmon, global senior vice president at Tubi, the No. 1 FAST platform in the United States, delivered the keynote address at the International OTT Forum held at the Four Seasons Hotel Seoul in Gwanghwamun on the morning of November 5. Given that keynote speakers have previously come from subscription-based online video services (OTT) such as Netflix and Disney+, the market sees this as a sign that the center of gravity on the media mainstream stage is shifting from paid subscriptions to FAST.

FAST lets viewers watch advertisements before, during or after programs instead of paying a monthly subscription fee. With a smart TV, viewers can enjoy free, 24-hour live channels without signing up or logging in, just as they would watch regular television.

Market research firm The Business Research Company ranked South Korea as the third-largest FAST market in the Asia-Pacific region, after Australia and Japan. It cited the strong hardware presence of smart TV manufacturers such as Samsung Electronics and LG Electronics, as well as rising demand for K-content. With the global FAST market projected to grow from about $13.6 billion (approximately 18 trillion won) last year to around 47 trillion won by 2030, the report said Korea has an opportunity to expand its global streaming footprint by combining Korean content with platform infrastructure.

Korea's media industry is already undergoing a transformation. Following Samsung Electronics and LG Electronics, which have smart TV infrastructure serving more than 800 million sets worldwide, homegrown OTT platforms are also stepping up their participation. TVING and Wavve are pursuing a two-track strategy: keeping original content on paid subscription video-on-demand (SVOD) models while expanding FAST channels using content that was popular in the past. This approach helps prevent users from leaving while securing new advertising revenue streams.

Experts say government-level initiatives are needed for Korea's FAST ecosystem to deliver results on the global stage, rather than merely defend the domestic market. According to the report "A Study on Measures to Promote the K-FAST Ecosystem," published by the Korea Broadcast Advertising Corporation, about 85% to 90% of global FAST advertising transactions are conducted through sophisticated, data-driven programmatic methods. The potential of FAST as a high-value business has already been demonstrated: advertising rates for premium channels with clearly defined target audiences can be set at up to three times those of general open marketplaces.

Kim Do-kyung, the report's lead researcher, said, "The market share of hardware-integrated K-FAST is a national asset that can be converted into leverage for the distribution of K-content," adding, "The value of K-FAST lies not in expanding the domestic market, but in overseas distribution channels themselves." Kim also recommended strengthening policies to introduce public platforms that ensure content diversity, support the development of AI-based production and distribution technologies, and diversify distribution networks to help global FAST services expand overseas.

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