Warner Bros. Discovery Chief Executive David Zaslav mentioned adding FAST to their portfolio in the two recent conference calls (this two years after VIP+ suggested the idea of launching FAST for Discovery).
However, his comments in Q3 concerning research WBD has conducted point to that his method is flawed. In mentioning two classic Westerns that both began in 1959 -“Rawhide” and “Bonanza, “Rawhide” in addition to “Bonanza” — – as examples of content that performs best with FAST implies that WBD may be using FAST primarily as a method of distribution old-fashioned content, such as the earliest series of “Sesame Street” that were removed on HBO Max earlier this year.
To begin, Zaslav is advised to read VIP+’s most recent Fast special report which details the importance of content and the strategies required to differentiate in a competitive marketplace. Blowing the dust off of content that was archived and making it a part of a strategy isn’t going to be enough in 2023. However, it does have an important role to play in the future, most likely as in curated channels based on specific topics.
WBD is blessed with one of the largest media vaults along with many brands ranging across TCM, Adult Swim and Cartoon Network to HGTV and Travel Channel — that instantly stand out. It’s quite possible that in the next year WBD will be operating fifty or more channels, which comprise an integrated channel hub that is part of the newly merged HBO Max/Discovery+ service that is likely to be referred to in the future as” Max.”
This implies that WBD can draw on its library by creating channels that are based on the brands of its cable networks (much like A&E Networks, AMC Networks, NBCUniversal and Paramount have done, and several small cable companies) This will quickly draw attention from viewers.
WBD can also take the same route as Sony Pictures and, more recently, Lionsgate have, creating several channels that are based on films with new branding. In the case of Sony Pictures there are several “Cinevault” channels that include “Cinevault Westerns,”” “Cinevault 1970s,”” “Cinevault 1980s” along with “Cinevault Classics” and Lionsgate changing its name for the “MovieSphere Free Movies” channel to “MovieSphere by Lionsgate.”
single-series channels are another area in which WBD is able to really shine. They fall into two categories, with the first being vault content that is a result of shows that are no longer on air. Consider channels that are dedicated to shows like “Aqua Teen Hunger Force,”” “The Powerpuff Girls,” “Diners, Drive-Ins and Dives,” “Cake Boss” and even the classic HBO programming such as “The Wire.”
The other type of channel that is single-series would be channels that are pop-up (i.e. temporarily and tied to a show’s premiere) and permanent which are based on earlier seasons of major new series that are about to be released on streaming or cable. Also, movie franchises with the prospect of a major new release to release could create anticipation with an online channel that is based on the same films.
As VIP+ discovered earlier in the year in assessing the possibility of whether Netflix would launch new FAST-related channels bulk of watching of streaming series that are big is during the first thirty days after the launch.
Also, the majority of people likely aren’t signing up for HBO Max right now to go back and watch the old seasons that include “Succession” and “Gossip Girl.” However, channels that are based on old episodes could attract viewers who are looking for something that they know to watch.
The two types of single-series channels could be considered upsells. Channels that are based on previous seasons are a common strategy to attract viewers. They say, “If you’d like to see the latest season, you can subscribe now.”
Channels that are based on old content can also be a great opportunity for upselling. Peacock offers a compelling instance study in this regard with its recently started FAST channels to “The Office,”” “Law and Order” and the “Chicago” universe. These channels are fantastic ways to draw attention and can be monetized through ads. Due to its linear format, these channels may not be the most suitable for people who wish to watch all of the series in sequence (unless one is a night owl). In order to do this, one has to be a subscriber.
Zaslav’s remarks about the kind of content that is most effective on FAST don’t take into account the fact that there are a variety of national FAST news channels which include “NBC News Now,” “ABC News Live,”” “CBS News,”” “LiveNow From Fox” and “CNN Replay.” Some of them have a growing audience, however “CNN Replay” is the only news brand in the country that is still based on reused news footage. If HLN had not been devastated by job losses and layoffs, it could make an ideal Fast news channel in the case of Warner Bros. Discovery.
Discussions about streaming channels must not overlook PAST the premium alternative of FAST that is available on some SVOD services, such as Discovery+. Although Discovery+’s Discovery+ PAST channels currently don’t have advertisements in the ad-supported tier — which is quite a puzzle however they provide strategic value in the event that the channels are themed or have older seasons of shows include paywalled linear streaming channels as well as older content is also free.
Regarding what distribution channels FAST will have WBD should make sure to keep some exclusive to a hub within Max. Exclusive channels are likely to be among the ways that services compete to differentiate themselves. WBD must certainly make the most the assets it has.
However, WBD should follow in the footsteps that of A&E Networks, which, without their own FAST service it distributes its 18 channels on Freevee, LG Channels+, Plex, Pluto TV, Samsung TV Plus, Roku Channel and Vizio WatchFree+. This allows the content to have the possibility of being watched regardless of where viewers are located and, in an increasingly dispersed landscape is the most efficient way to maximize earnings.
As mentioned in the VIP+ special report FAST was an environment where old content could be relegated to the back burner and it worked. However, the market has changed quickly and requires a more sophisticated method of operation. WBD is able to be a true giant of speed. If it adheres to VIP+’s model and guidelines, it will be able to accomplish that.
