Why Adult Content Will Be On FAST (Sooner Than You Think)
XXX FASTMaster Analysis XOXO
Has the FASTMaster become the PornMaster? Not quite. But in a storied line of seeing things ahead of the market, one factor I think that deserves a little discussion is the Adult Entertainment industry and the role it could potentially play in FAST.
Now you may think I’ve lost my mind saying that, as think of the advertisers! To that, I would say relax. I’m not about to write a detailed analysis advocating for a PornHub channel on a service. What I am going to do is explore the potential that content related to the adult industry can offer (not necessarily porn). It’s not as wild as it may seem if you consider that plenty of scripted originals on ad-supported SVOD feature intense scenes of passion and then sell ads for dish soap or fast food. Or to take it a step further to relevancy on FAST, there are many channels featuring horror movies with scenes of blood and gore - some of these may only show more intense scenes later in the evening (post watershed) but it’s not too far to imagine a similar rule applying to adult.
This story goes back to MIPCOM and something I heard mentioned in a meeting I was part of. Apparently in Europe there have been adult-themed channels which launched and are generating strong ecommerce revenues. Then over the winter Samsung TV Plus updated its operating system, which at the time of the initial overhaul, had a little “Free” over each channel logo (that has subsequently gone). This got me to thinking that encrypted paid channels would at some point be added to the service, whether these be linear channels based on an SVOD service (such as how I covered the Roku Channel doing so two months ago), linear TV channels from a VMVPD service or content that would be better to be encrypted (not just adult, but could be more mature movie or TV channels in order to get more kid-friendly advertising).
Consider too that although it’s not broken out as a line item on quarterly earnings reports, Pay TV companies continue to make a pretty penny from adult content. Much as FAST represents for companies like Comcast, Dish and Charter as ways to safeguard existing advertising revenue streams, it will only be a matter of time until the traditional purveyors of longform adult embrace digital distribution. Some consumers will prefer that too, dealing with reputable and trusted sources versus pop-up laden websites with phishing concerns.
For those reasons, in the recent FASTMaster FAST Landscape Study I designed, I thought I’d add adult content as one of the 41 genres we asked respondents (3,003 US 18-64) if they watched regularly, had in their top 5 favorite genres, and watched on FAST. The results were very interesting.
Regular Viewership
One in four adults (24%) say they regularly watch adult content. Per the study, that ties adult 19th out of the list of 41 genres, and put it ahead of (aka is more popular than) travel shows, sports documentaries, anime, late night talk shows and faith/family-based content (the irony).
This viewership wanes with age (something about testosterone, no doubt, or at least a fun coincidence), with 31% of 18-34s saying they regularly watch, making it the 17th most popular genre there. 25% of 35-49s watch (tied 22nd in genres), with 14% of 50-64s admitting to a dabble (making it the 30th most popular genre).
Adult As A Top 5 Favorite Genre
11% of adults 18-64 said adult content was one of their top 5 genres to watch. This placed it 17th overall and ahead of genres like game shows, competition reality, home improvement, historical/military documentaries and nature shows. Interestingly, these all ranked ahead of adult when it came to regular genre viewership but fall behind as a favorite. Thus I think it’s fair to argue that adult has a strong potential audience.
Adult rises all the way to 10th as a top 5 genre among 18-34s (tied with classic TV/movies and Sci-Fi), with 15% selecting it. 10% of 35-49s have it as a top 5 genre, tied 16th with game shows, sports documentaries and sports talk shows), whilst 5% of 50-64s say its a favorite genre (tied 33rd with sports talk shows).
Adult Content Fans & FAST
So far it’s not hard to follow the logic that adult’s a pretty popular genre, easily monetizable (think not just commerce but how many Influencers dabble in OnlyFans and the potential for influencer channels too) and thus offers strong potential for revenue - perhaps not traditional advertising revenue but upsells, subscriptions and commerce.
But do fans of this content watch FAST? According to the FASTMaster study, 53% watch FAST channels regularly on at least one service, with this breaking out as:
32% on Freevee or Freevee on Prime Video
19% on Tubi
15% on Pluto TV
14% on Roku Channel
3% on Google TV
2% on Samsung TV Plus, Fire TV and Peacock
1% on ABC, CW, LG Channels, Local Now, Plex, Vix, Vizio WatchFree+ and Xumo Play
Under 0.5% on Redbox, Sling Freestream, TCL TV+
In contrast, 38% say they watch FVOD services regularly, led by Tubi (17%), Roku (11%), Pluto (10%) and Freevee (10%).
When looking at the frequency of viewing FAST, here’s how it breaks down:
47% of adult content viewers currently don’t watch (maybe they would if they had channels that interested them)
13% watch a FAST service only a few times a month
10% watch a FAST service once a week or so
25% watch a FAST service a couple of times a week
23% watch a FAST service daily or almost daily
(Note in the above, if someone watches two FAST services, they will do so at different frequencies and thus the data points are nets and won’t sum to 53%).
Time Spent Viewing Formats Per Week
This set of data is based among viewers of each format who also are fans of adult content, so the base answering for each format will vary based upon that. A couple of things stand out from this data: adult content viewers watch more FAST than average, and FAST still has a lot of room to grow from a very solid base that’s within touching base for viewers of cable and broadcast TV, and that adult fans seem to watch more of new media but less of older formats, likely tied with the over-representation of younger folk within this group:
SVOD: 13.8 hours a week (18-64 average12.6 hours)
YouTube: 11.3 hours (10.3 hours 18-64 average)
Cable TV: 9.5 hours (vs. 10.6 hours average)
Broadcast TV: 9.4 hours (vs. 9.3 hours average)
FAST: 8.2 hours (vs. 7.5 hours average)
FAST As A Top 3 Entertainment Source
A very interesting trend emerges for the question asking what their top three entertainment sources are. SVOD is the clear leader, driven by first choice selection. But should that first choice be exhausted, then FAST quickly becomes a choice (among adult fans) to find something to watch:
69% had SVOD services in their top 3
45% had FAST channels in their top 3
43% had YouTube in their top 3
30% had cable TV networks in their top 3
23% had FVOD services in their top 3
22% had broadcast TV networks in their top 3
This shows both the tremendous potential of FAST (it has great reach within the consideration set) as well as showing how viewers of each format trust them for entertainment.
The Future?
I think the easiest and most cost-efficient way to begin here is e-commerce, whether it is partnering up with a national retailer that already sells adult goods, or a programming block on a FAST-shopping channel. QVC has already began to experiment with new formats (adding a chat show to QVC+), adding a late night block in partnership with a known brand would not be such a wild thought as it may seem.
Additionally, FAST services shouldn’t shun brand extensions from adult brands, especially given the interest in the genre and their higher than average adoption of FAST. No-one will be pitching FAST for traditional adult content (I can see a specialized PAST feed for that, much as cable has currently and generates strong profits from), but instead expect to see content around intimacy, health and wellness, ambient and talk shows.
To give an example, I have heard whisperings that leading adult brand Hustler has been exploring entering FAST along these lines, including brand extensions around commerce, sexual health and lifestyle elements. If done correctly, channels featuring a recognizable brand with content safe for FAST can only be a win for all stakeholders. At the end of the day, capitalism will ultimately see that the most money to be made is made, and it is for reasons like this that I think what’s outlined here will happen sooner than later.
Appendix: Adult Content Viewer Profile
48% 18-34 (sig. higher than most key genres profiled in analysis), 34% 35-49, 19% 50-64
Overall sample was 37% 18-34, 32% 35-49, 31% 50-64
63% male (sig. higher than most key genres), 36% female, 1% identify differently
Overall sample was 50% male, 49% female
53% White (sig. lower than average), 15% Black, 24% Hispanic (sig. higher than most key genres)
Overall sample was 60% White, 14% Black, 18% Hispanic
HH Income = $61,850 (slightly below survey average of $63,130, but greater than FAST viewer average of $59,190)
71% have cable (around survey average of 68%)