A new solution in the streaming space lowers barriers for publishers to break out in ad-free streaming. Were this to take off, TV watchers might have the ability to choose from many linear-style channels produced by their preferred news sources. Just picture your favorite websites or magazines as stations, à la Vice. DistroScale, a video platform for publishers, has launched its DistroTV solution, which takes video content created by publishers, stitches it and distributes it as an ad-supported station. Co-founder and CEO of DistroScale Navdeep Saini told us, “The big change here is no upfront costs, which I think is revolutionary. Typically publishers have to pay several thousand dollars a month or more to syndicate the channel at each endpoint, and pay fees for dynamic ad insertion.” Instead, the company takes a cut of the ad revenue on the back end. Viewer types. Saini said he sees video consumption as split into two main categories. On the one hand, viewers go into “lean in mode” to search out specific content in a focused way for favorite TV shows or specific news stories. Then, there is “lean back mode,” where viewers just want to relax and watch a favorite category of content, like sports or news. Saini said he thinks there’s a limit to how many subscription services viewers are willing to pay for. This opens a lane for free ad-supported television (“FAST”). Since its launch in 2019, DistroTV has grown to more than 150 live streaming channels. Why we care. Marketers need to meet their audience where they are, and TV remains an important source of entertainment and news. For subscription services, fragmentation poses a problem because viewers have to make multiple payments to see everything they like. Free ad-supported stations are likely to support more fragmentation because they offer real variety at no additional cost to viewers. Having a solution that lowers barriers for traditional and legacy print publishers to serve 24/7 linear stations will feed this demand as the streaming industry matures. |