Alison Roman, a renowned cookbook author, is finally getting her TV show - but not on the Food Network as one might expect. Instead, she's partnering with Tastemade, an internet TV company that distributes its streaming channels via smart TVs and streaming dongles.
This development marks a significant shift in the television industry, where traditional networks are struggling to keep up with the changing landscape of entertainment consumption. Roman's journey to TV is a testament to this transformation, having initially planned a show for CNN's subscription service, which was later canceled due to cost-cutting measures.
From Social Video to Internet Television
Tastemade's CEO, Larry Fitzgibbon, shares a similar story of evolution. The company was founded in 2012 with the vision of creating a new kind of Food Network. However, filming people's cooking is much cheaper than producing scripted entertainment, making it an attractive option for the startup.
Fitzgibbon notes that Tastemade began producing clips for YouTube and soon expanded to other social networks. The company launched its first 24/7 streaming channel on YouTube TV in 2018, followed by a free version on services like Pluto and the Roku Channel. This move allowed consumers to enjoy free, ad-supported TV channels (FAST channels), which are rapidly growing in popularity.
An Alternative to Expensive and Time-Consuming Content
Around a third of all TV viewers now use services with these kinds of free streaming channels, according to a recent study from Comcast's subsidiary Xumo. Market research company Omdia estimates that free streaming channels could generate $10 billion in revenue in the US by 2027.
Tastemade has four such channels, with viewing time increasing by 50% year-over-year and accounting for nearly 70% of all time spent viewing Tastemade content. The venture-backed startup has raised around $130 million to date, making it a significant player in the streaming industry.
Free Streaming Requires Working with Small Budgets
Fitzgibbon emphasizes that working with small budgets is essential for free streaming channels like Tastemade. This includes filming content on a relatively low budget in-house and striking creative licensing agreements to produce high-quality shows at a lower cost.
Tastemade's partnership with public TV station KCET resulted in the Emmy-award-winning documentary series Broken Bread, featuring star chef Roy Choi. The company has also licensed multiple Jamie Oliver shows that previously aired in Europe. Now, Roman's YouTube show is being picked up by Tastemade, a step that traditional TV networks would have shied away from.
The success of free streaming channels like Tastemade and the rise of FAST channels challenge traditional networks to adapt to changing viewer habits and consumption patterns. As the industry continues to evolve, one thing is clear - the days of expensive and time-consuming content are numbered, making way for a new era of innovative and cost-effective storytelling.