CNN and Roku lean deeper into FAST channels

The news: CNN and Roku are launching free ad-supported streaming (FAST) channels to capitalize on rising consumer demand for unique content.

• CNN Originals features exclusive shows like “Chasing Life with Dr. Sanjay Gupta,” and “Anthony Bourdain: Parts Unknown.”
• Roku Sports Channel, to debut August 12, will be a hub for premium content owned and licensed by Roku. It will include Major League Baseball games, talk shows, Formula E races, and original programs tied to the NFL and wrestling.

CNN said Originals, joining current FAST offerings CNN Headlines and CNN Fast, is available on Amazon Prime Video, Freevee, Fire TV, and Plex. Roku Sports Channel will be accessible on Roku devices, Fire TVs, and Samsung and Google TVs.

Why it matters: Cost-conscious consumers are thirsty for niche content and more affordable options, especially as major streamers like Disney raise prices for their subscription-based services.

FAST is a fast-growing segment used by nearly one-third of the US population, with the number of viewers due to climb to 125.5 million by 2028, per our forecast, as time spent with services like Paramount’s Pluto, Fox’s Tubi, and Freevee increases.

• Roku is betting on sports to gain viewers and has grown significantly in wake of content deals with MLB, the NBA, and other leagues.
• And CNN CEO Mark Thompson is trying to transition the iconic brand away from its cable roots into a digital business. In July, CNN cut about 100 positions, or 3% of its workforce.

FAST saves advertisers money as well. CPMs (cost to reach 1,000 users) for FAST inventory are typically $10 to $15 and can be even lower if purchased on a non-guaranteed basis, per Digiday. By comparison, CPMs on subscription streaming services like Hulu and Netflix range between $25 to $47, according to our KPI forecast.

Our take: CNN Originals and Roku Sports Channel are the latest entrants into a TV segment that is gaining prominence with both consumers and advertisers. As these channels proliferate, they provide more opportunities for marketers to get their messages in front of viewers.

Go further: For more on FAST services, check out our FAQ on Free Ad-Supported Streaming TV report.