The FAST—Free, Ad-Supported Television—market has made a lot of strides in recent years. Its two key selling points—a combination of substantial content offerings and remarkably low prices—are driving it to a surprising win in the midst of regular streaming services that only seem to increase in price. But which of the major FAST options stands the best chance of coming out on top? Is it the eponymous Roku (NASDAQ:ROKU) of the Roku Channel? Is it Fox’s (NASDAQ:FOXA) Tubi? Or is it Paramount’s (NASDAQ:PARA) Pluto TV that can win here?
The Most Likely Winner Is Roku
Roku goes in with quite a few advantages on its side. It’s been steadily gaining ground with viewers over the last few years, and as of 2024’s first quarter, it’s reached a total of 81.6 million accounts worldwide. That’s the most active users it’s seen at any time and represents an increase of 20 million viewers over the course of two years.
And all those viewers have quite a bit of content to enjoy; Roku has 400 live channels to watch, as well as a range of free content available on demand. In fact, Roku even has subscription channels, making it potentially one of the most wide-ranging offerings. Its recent addition of Plex improved its range even further, giving users several more options.
Paramount’s Near Match, Pluto TV
Pluto TV, meanwhile, has made significant strides and isn’t too far away from Roku’s numbers. It reached 80 million monthly active viewers only recently, making it a near-match for its rival. Pluto TV operates in a different fashion from most other FAST services; it operates in much the same way linear television does.
It offers what amounts to channels that run continuously, allowing viewers to select, say, “Star Trek: Deep Space Nine,” but not the precise episode, only what’s running at the time. You may want to see “The Magnificent Ferengi,” but what you’re going to watch is “whatever episode Pluto has on right now.” Pluto calls the shots, not the viewer.
Pluto also tends to skew heavily toward movie buffs, as several of its channels run movies. Though, again, you have to show up right at showtime to watch. This is especially useful for those who prefer the feel of old-fashioned, “appointment” television.
Tubi, Fox’s Lesser Roku
Tubi is making its way upward to become every bit of a match for Roku itself, though right now, Tubi is a significantly lesser incarnation of Roku. The two have comparable viewership numbers, though Tubi is currently behind at around 78 million monthly active viewers.
Tubi is showing signs of building into something impressive; for one, it’s separating its content into categories better, a point that was generally considered a necessity for some time. But Tubi is making the required changes, suggesting that it’s eager to be regarded as a full competitor. It will have to make up for lost time—and potentially lost viewers—but that can be done. It would be particularly doable if Tubi could bring in content that is not readily available anywhere else and perform sufficient marketing to let viewers know it’s there.
Which FAST Provider Is Leading the Way?
Turning to Wall Street, the current leader among FAST providers is ROKU stock. This Moderate Buy-rated stock offers a 20.52% upside potential on its average price target of $75.07 per share. Meanwhile, the laggard in the sector is PARA stock, as this Moderate Sell-rated stock can only offer a 1.92% upside potential against its average price target of $11.68 per share.
