Why Advertisers Can’t Afford to Overlook the Rising Power of Niche Streamers

In the current streaming TV landscape, the narrative is largely dominated by mass appeal streamers like Netflix, Amazon, and Disney+. These giants have captured global attention with their vast content libraries, premium brands, and significant subscriber bases. However, for advertisers, it’s not necessarily always about scale, but knowing your audience matters more, and recent trends reveal a growing opportunity that advertisers cannot afford to overlook: niche streaming programmers, particularly within the free ad-supported streaming TV (FAST) segment, are emerging as key players in the market. Niche streamers focus on delivering specific types of content tailored to particular interests, communities, or genres.

It’s important to recognize that not all FAST platforms are alike. There’s a clear distinction between standalone FAST apps like FutureToday’s Fawesome, and HayStack, and content providers like Tastemade, Outside TV, and Trusted Media Brands properties, which distribute their content across larger FAST platforms such as LG Channels, SamsungTV+, and Vizio WatchFree+. For advertisers, both standalone apps and content providers offer unique value, enabling marketers to reach highly engaged audiences in premium content environments.

As niche streamers continue to build viewership and momentum, here’s why advertisers should take note. 

1. Audiences are flocking to FAST services and niche streamers.

The rise of FAST services is a testament to the shifting dynamics of viewership consumption patterns. FAST platforms offer a big-screen viewing experience at no cost, making them increasingly appealing to a wide range of viewers. According to recent data, 57% of U.S. TV viewers watched FAST platforms in 2023, a significant jump from 40% in 2020. This growth is mirrored by the impressive performance of platforms like Pluto TV, which reported 80 million monthly active users—nearly double the estimated 44.1 million monthly viewers of Apple TV.

This surge highlights a critical trend: audiences are also gravitating toward these platforms because they offer specialized, niche content that resonates deeply with their interests. As viewers seek more tailored content experiences, niche streamers are carving out dedicated spaces where specific communities can find content that speaks directly to them. As Katya Shkolnik at Future Today, an independent streamer that operates the popular standalone FAST service – Fawesome, which features a diverse range of content, including lesser-known titles, older classics, and a strong focus on family-friendly programming, said, “The tremendous growth we’re seeing with our FAST service is a result of not just offering content for the masses—it’s about meeting the evolving needs of viewers who want content that fits their unique tastes – both literal and figurative.”

As programmers such as Outside TV, Tastemade, and others are syndicated on major FAST platforms like LG Channels, Samsung TV+, and Vizio WatchFree+, marketers can achieve major reach through these programmers in a way they couldn’t before. In this way, the rise of niche streamers mirrors a trend seen in the cable era. Just as the major networks offered broad reach, niche cable channels like HGTV and Comedy Central captured smaller, highly engaged audiences—making them incredibly valuable to advertisers. These niche streamers are now carving out a similar space, offering advertisers access to dedicated and passionate viewer bases – on the biggest screen in the home. 

2. Niche audiences are loyal and highly actionable.

One of niche streamers’ standout strengths is their ability to attract and retain highly passionate and engaged specialized audiences.

This engagement translates to viewing time. For example, My Code’s owned and operated platform Butaca TV (Butaca is Spanish for theater seat) has built a dedicated community of more than 11 million users per month across the U.S. and Mexico, who watch their curated selection of premium movies, television series, music videos, and original content. The U.S. Hispanic market is highly diverse, prompting Butaca TV to continuously introduce new content tailored to the various groups within this audience. Most recently, Remezcla, the Latine media brand owned by My Code, launched Remezcla TV, a FAST channel featuring music, film, and behind-the-scenes interviews. 

Butaca TV allows My Code to reach a Latino Millennial audience with a mix of the hottest music videos from “Indie Revolution” to an older Spanish-dominant user interested in viewing a digitally remastered Pedro Infante film. The result is a global community of engaged viewers that spans generations.

“Our users are not just viewers; they’re enthusiasts,” says Edgar Hernandez, chief strategy officer of My Code. “Their deep engagement makes advertising on Butaca TV more than just a transaction—it’s an opportunity to build lasting brand affinity.”

Similarly, Outside TV, a platform devoted to adventure sports and active lifestyles, offers advertisers a chance to connect with a loyal audience who are passionate about the outdoors. “Our viewers turn to Outside TV for authentic stories and 200+ hours of live sports on FAST, which resonate with their love for adventure and exploration. That connection translates into higher engagement with ads that speak to their values,” notes Chad Johnson, senior sales director at Outside TV.

Niche streamers and FAST services also have a stickiness factor with audiences – where loyalty and churn are an increasing problem. Deloitte’s most recent Digital Media Trends report says 40% of U.S. subscribers canceled at least one service in the past six months, highlighting the “rental” nature of many audiences on larger platforms. By contrast, according to Ampere Analysis, niche streamers enjoy much lower churn rates, with FAST services reporting churn rates below 2% per month, compared to approximately 6% for subscription-based streaming services.

3. Niche streamers offer unique content and creative flexibility.

Beyond audience engagement, niche streamers offer advertisers unparalleled creative flexibility. These platforms often host content that attracts highly engaged audiences with specific interests. Many of these niche streamers also produce their content in-house, offering advertisers custom solutions that integrate their brands directly into the shows or programming. This allows brands to reach these engaged audiences in a unique and compelling way. Tastemade, for instance, has become a go-to platform for food, travel, and home and design enthusiasts and can tailor content to this audience. 

“Every piece of content we create at Tastemade is catered to and driven by our viewer,” says Kristin Eardley, head of programmatic and revenue partnerships at Tastemade. “Our content not only entertains but also inspires, connects, and is driven by a deep understanding of what our audience craves – from the flavors they want to explore to the places they dream of visiting. This viewer-driven approach ensures that every piece of content feels relevant, personal, and impactful, which sets Tastemade apart and explains why we’ve seen such success in the FAST space.”

Supporting niche streamers helps the CTV ecosystem thrive.

From a strategic perspective, supporting niche streamers is crucial for maintaining a competitive and diverse streaming market. These platforms help reach and entertain unique audiences by offering viewers a range of diverse content, which is vital to buyers who are looking to reach these audiences. Niche streamers play a fundamental role in preventing the market from becoming too concentrated in the hands of a few major players. 

In an era where audience engagement is paramount, advertisers who broaden their focus beyond top-tier streaming services stand much to win. By investing in niche streamers and FAST platforms, advertisers can ensure their messages reach loyal, engaged audiences, boosting brand affinity and impact.