Should indie filmmakers embrace or avoid FAST and AVoD platforms?

It is not uncommon to find indie filmmakers on social media forums talking about film distribution, agonising about their path to a successful release. Waves of new content hit streaming platforms every day, so how does a filmmaker ensure their film — particularly a lower-budget feature with little-­known talent — finds an audience, recoups costs and maybe even turns a profit?

In recent years, amid the streaming landscape’s ‘Great Correction’ around budgets and content slates, AVoD (ad-supported video-on-­demand), FAST (free ad-supported TV) and TVoD (transactional video on demand) have become hot topics in these online groups as new services such as Tubi and Pluto TV become increasingly attractive platforms for monetisation. They are now essential parts of a release strategy for some filmmakers, whether that is through a relationship with a sales agent or distributor, or via self-distribution and aggregator services like Filmhub.

Slots are certainly available for the right films. According to media consultancy 3Vision, there are more than 450 unique movie channels on major FAST platforms around the world, and while channel growth is slowing overall, movie channels — long considered an effective tool for retaining audiences — are bucking the trend and still expanding market share.

But how quickly should films be landing on AVoD and FAST channels? Where do movies sit in this ecosystem, as ad-supported platforms become more attractive to cash-strapped consumers unwilling to fork out ballooning subscription fees? How close are we to seeing a recent movie release roll out on AVoD without undermining its market value?

Consumer staple

FilmRise hopes we are not too far away. The New York-headquartered studio and streamer runs around 70 FAST feeds of its own that lean heavily on movies. As an AVoD content provider, the company also sells films into all the major platforms.

Jonitha Keymoore, head of content at FilmRise, asserts FAST exposure helps to build awareness of a movie and does not impact market value. If you are delaying for a couple of years before placing content on AVoD or FAST, “what are you waiting for?” she asks.

“I tell rights-holders to ensure there is FAST exposure and not to feel like they need to be hindering that portion of the rights set,” adds Keymoore, who oversees content licensing and production across all of FilmRise’s streaming operations. While care must be taken to sell to the right partner — one that ensures optimal placement of the film, for example — holding back a FAST release does not benefit a movie.

“A lot of rights-holders are relying on the traditional windowing system, but it needs to be on a case-by-case basis that’s tailored for a film,” says Keymoore. “You want to get it out as widely as possible so everyone can see it and have an awareness of it.”

Consumers are increasingly cost-sensitive, meaning they are more inclined to wait until a title is no longer behind a pay window. “The sooner you get it out wide, the sooner more people are going to see it, versus [a situation where] people might say, ‘Let me wait until it’s out of the fee window,’ and then forget about it altogether,” adds Keymoore.

The competitive advantage, she says, is in thinking outside the traditional windowing system — a message Netflix co-CEO Ted Sarandos underlined at September’s Royal Television Society conference in London. “Audiences don’t care about windows at all,” declared Sarandos, adding that viewers are not exactly discussing windows over dinner.

“When you work in our business long enough, it’s easy to get distracted by all these complexities,” Sarandos continued. “What matters is how well we serve the audience.”

Some distribution experts, however, maintain that those “complexities”, especially around windowing, are what has sustained the industry for decades. “I’m a total believer in windows,” says one distributor. “I’m in awe of what Netflix has done, but Netflix wouldn’t be here without the theatrical world.”

There is a sense by some in the industry that FAST channels — yet another window — have become something of a ‘magic Band-Aid’ that will fix all the industry’s monetisation woes. But in reality, the figures do not yet add up in terms of ROI. Although a few ad-supported platforms will license content, most are still on revenue-share models.

“A recent film should never go near FAST; you shouldn’t even touch FAST,” says Mitch Mallon, founder of global digital content provider and distributor Stadium Media. “That’s short-sighted. AVoD is wonderful, but there’s a place for it.”

The Arizona-based executive — who deals with myriad streaming partners but is selective about the films he acquires — argues that AVoD and FAST deals can erode the value of a movie. “Everything should be offered to consumers properly,” says Mallon. “We don’t want to cut out any consumer, and we want everyone to have access. But there’s a price for access.”

The executive compares AVoD with the TVoD model, which he says still allows a film to gain awareness and marketing exposure well before it goes to AVoD. Data from analytics firm Ampere Analysis shared with Screen International reveals the US TVoD market generated revenues of $4.33bn last year, and is projected to contribute $4.36bn in 2024.

“A lot of companies don’t look at that,” says Mallon, “but in a transactional world, I have an opportunity to price it properly, to window it properly, to offer it for sale only, or for rental, or a different version. I have all of this to do.”

Once the film goes to AVoD, there is little more to be done for a distributor, and even less on FAST, where as far as the consumer is concerned, they are getting the content for free.

Some distributors have found a savvy business model in running their own FAST channels. Eduardo Escudero, co-founder of Spanish producer-­distributor A Contra­corriente Films, says the company sells catalogue titles to various FAST channels, but focuses primarily on two of its own, Cine Verdi TV and Cine Feel Good Verdi TV, which are available only to the Spanish market.

The arrangement also allows the company to offset the steep costs associated with delivering film files and metadata to other platforms, which can eat into revenues.

Would Escudero put a recent title on a FAST outlet? “The current economic return would not justify it, in most cases,” he says. “[AVoD] shouldn’t come at the cost of missing other opportunities, and this cost exists if there is the option of obtaining a paid license in another exploitation model that is incompatible.”

Exploration of AVoD

AVoD deals can make a lot of sense for some kinds of content — even recent films. David Piperni, founder of documentary-­focused sales agent and distributor Cargo Film & Releasing, says a challenged second-window license in North America has prompted the company to explore AVoD in a more meaningful way.

“These days, once [a documentary] has had its first-window license, it’s rare to get an outlet interested in the second window unless it’s a really small streamer or outlet,” says Piperni, who represents titles such as The Conductor, a documentary about musician Marin Alsop, and Who’s Afraid Of Nathan Law?, about the Hong Kong activist. “In those instances, there are still many examples of FAST acting as the end-of-the-line monetisation and long-tail,” particularly for Cargo catalogue titles that have just come off Netflix or HBO licenses.

“But then there are times where, as a result of an increasingly narrow entry for independent film and outlets buying a lot less, you know straight away that you’re not going to get any interest for a film,” continues the New York-based executive.

In those cases, the FAST window is moved up, making the title “more readily [available] on FAST than you would have in the past”, says Piperni, noting that other revenue streams such as educational deals may also be done concurrently.

Piperni underlines that for key licensing deals, players such as Tubi can be as competitive as SVoDs for the right project. “They’re definitely in the ballpark.”

Faced with such commercial incentives, Piperni admits his opinions on dealmaking with AVoD and FAST players have changed considerably. Two years ago, seeing a “new” film land on a FAST channel might have been a red flag. There might have been a perception the title was not good enough for an SVoD player.

“But I don’t think that applies anymore,” says Piperni. “I’m on the frontlines, and I know there are so many good films that just don’t make it to big outlets, but are still fabulous films. And sometimes, they’re even better than the films that are licensed for high figures.”

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