Magnite’s Sean Buckley On Media Company vs OEM FASTs [Video]
In this video Innovator Spotlight from our new report FASTs Are The New Cable, Magnite’s Chief Revenue Officer Sean Buckley discusses the relative advantages of FASTs owned by the major media companies and those owned by the various smart TV and connected device manufacturers.
TRANSCRIPT:
Sean Buckley: So I think this distinction is a very important dynamic in this area of the business Let's start with the with the OEMs. I think they have multiple angles or advantages that they can leverage.
Number one is discovery.
Given that the FAST apps owned and operated by the OEMs or the device manufacturers can be so closely correlated with the consumer experience. Given that hey either own the operating system or the device itself, it obviously gives them an advantage in terms of what the discovery process is like, what a consumer journey is like, in terms of how they turn on their television and how easy it is to access those applications.
And so I think that's the number one inherent advantage that the OEMs have.
Also, I think from an advertising standpoint, the OEMs obviously have very unique first party data assets and so they're able to layer that first party data, for example, ACR data right on top of that FAST inventory footprint that they own as well as across the “carriage deals” or the “distribution deals.” They get a slice of inventory from third party apps in return for distribution. And that is a really compelling value proposition to buyers, which means it is a huge asset for the OEMs.
It's not to say that others don't have first party data, but I think the capabilities that the OEMs have is uniquely differentiated. I'm obviously oversimplifying that, but it's how I would sum up the OEM situation
Now, the FAST apps that are that were built or acquired by the major programmers, I think the really unique opportunity there is to selectively include a unique content proposition. And obviously those companies are operating off of a deep, long standing portfolio of content that they can pick from.
And I think that could be a draw to have certain aspects of a unique content value proposition where a consumer wants to watch something and now they're inside of that app and it's pretty seamless for them to use it again or watch something else. And so I think the big draw for the programmer owned FAST apps is their content application.
