Free ad-supported streaming TV (FAST) - Europe

Europe

Highlights

In Europe, revenue in the Free ad-supported streaming TV (FAST) market market is projected to reach US$1.45bn in 2024.
Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 16.34%, culminating in a projected market volume of US$3.08bn by 2029.
In a global context, the majority of revenue will be generated the United States, which is anticipated to reach US$5.24bn in 2024.
The average revenue per user (ARPU) in the Free ad-supported streaming TV (FAST) market market in Europe is projected to amount to US$8.66 in 2024.
Furthermore, the number of users in this market is expected to reach 189.0m users by 2029.
User penetration in Europe will be 19.8% in 2024, with expectations to increase to 22.4% by 2029.
In Europe, the rapid growth of free ad-supported streaming TV (FAST) is reshaping viewing habits, as audiences increasingly favor accessible content over traditional subscription models.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Free ad-supported streaming TV (FAST) market in Europe is experiencing significant growth and development, driven by changing customer preferences and the increasing availability of streaming services.

Customer preferences: Customers in Europe are increasingly opting for streaming services that offer free ad-supported content, as they provide a cost-effective alternative to traditional cable or satellite TV subscriptions. This preference is driven by the desire for greater flexibility and convenience, as well as the ability to access a wide range of content on-demand. Additionally, the ability to watch content on multiple devices, such as smartphones, tablets, and smart TVs, is also a key factor in driving the popularity of FAST services.

Trends in the market: One of the key trends in the FAST market in Europe is the emergence of local and regional streaming platforms. These platforms offer a mix of local and international content, catering to the specific preferences of the local audience. This trend is driven by the demand for localized content and the need for platforms to differentiate themselves from global streaming giants. Additionally, partnerships between local broadcasters and streaming platforms are also becoming more common, further expanding the availability of free ad-supported content. Another trend in the market is the increasing adoption of programmatic advertising in the FAST space. Programmatic advertising allows advertisers to target specific audiences based on their demographics, interests, and viewing habits. This targeted approach not only enhances the effectiveness of advertising campaigns but also improves the user experience by delivering relevant and personalized ads. As a result, more advertisers are allocating their budgets towards programmatic advertising on streaming platforms, further fueling the growth of the FAST market.

Local special circumstances: Each country in Europe has its own unique set of circumstances that influence the development of the FAST market. For example, in countries with a strong public broadcasting system, such as the United Kingdom and Germany, there is a greater emphasis on ad-supported streaming services that offer a mix of public and commercial content. In contrast, countries with a more fragmented media landscape, such as Spain and Italy, are seeing the emergence of streaming platforms that aggregate content from multiple broadcasters and production companies.

Underlying macroeconomic factors: The growth of the FAST market in Europe is also influenced by underlying macroeconomic factors. For instance, the increasing availability of high-speed internet connections and the proliferation of connected devices have made it easier for consumers to access streaming services. Additionally, the rising popularity of smart TVs and streaming devices has also contributed to the growth of the market. Furthermore, the ongoing shift in consumer behavior towards digital media consumption and the decline of traditional TV viewership are driving the demand for ad-supported streaming services. In conclusion, the FAST market in Europe is experiencing significant growth and development, driven by changing customer preferences, the emergence of local and regional platforms, the adoption of programmatic advertising, local special circumstances, and underlying macroeconomic factors. As streaming services continue to evolve and expand their content offerings, the FAST market in Europe is expected to further flourish in the coming years.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats from services that offer free content supported with advertisements.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.