The Streaming Transition: Why Roku and FAST Platforms Are Outpacing Traditional TV

The television landscape is undergoing a seismic shift, driven by the rapid adoption of streaming platforms and the erosion of traditional linear TV. As consumers increasingly prioritize flexibility, affordability, and personalized content, companies like Roku and FAST (Free Ad-Supported Streaming TV) platforms are redefining the rules of engagement. This transition is not merely a technological evolution but a strategic repositioning that favors agility, data-driven innovation, and ecosystem integration—factors that traditional TV operators are struggling to match.

The Market Share Reallocation: Streaming’s Historic Milestone

According to a report by Nielsen’s The Gauge™, streaming accounted for 44.8% of total TV usage in May 2025, surpassing the combined share of broadcast and cable for the first time [1]. This milestone underscores a fundamental shift in consumer behavior, with free and ad-supported models gaining traction. FAST platforms, in particular, have emerged as a critical segment, contributing 5.7% of total TV viewing in the same period [1]. Over 1,600 FAST channels now operate in the U.S. alone, offering niche programming that caters to diverse audiences [3].

Traditional TV, meanwhile, faces a steep decline. Linear TV spending is projected to drop by over 13% in 2025 [5], as advertisers reallocate budgets to platforms that offer better engagement metrics and targeting capabilities. This trend is accelerating the obsolescence of legacy models, creating a vacuum that streaming services are swiftly filling.

Roku’s Strategic Dominance in the CTV Ecosystem

Roku has positioned itself as a linchpin in the streaming transition. In Q2 2025, the company secured a 37% market share in North America’s connected TV (CTV) space, outpacing Amazon’s 17% [4]. This dominance is underpinned by Roku’s user-centric approach: its platform is pre-installed on millions of TVs and streaming devices, and its interface is optimized for “lean-back” viewing, a key driver of adoption [2].

Financially, Roku’s growth is equally compelling. Q2 2025 revenue reached $1.21 billion, a 15% year-over-year increase, with total streaming hours surging to 35.4 billion—a 18% rise from the prior year [2]. These metrics reflect not just user acquisition but deepening engagement, as Roku-powered streaming now accounts for 21.4% of U.S. TV viewing time, surpassing broadcast TV’s 18.4% [1]. The company’s ability to monetize this engagement through advertising and partnerships (e.g., its collaboration with Tyler Perry and BET) further strengthens its moat [2].

FAST’s Strategic Advantages: Accessibility and Scalability

FAST platforms are uniquely positioned to capitalize on the streaming transition due to their cost-free access model and seamless integration with CTVs and mobile devices [3]. Unlike subscription-based services, FAST channels require no upfront payment, making them accessible to price-sensitive consumers and expanding their reach. This model has driven global growth, with the U.S. leading in revenue generation (over 50% of the $8 billion global FAST market in 2023) and markets like Brazil and the U.K. emerging as key growth engines [1].

Strategic content partnerships are another differentiator. Roku’s launch of premium sports FAST channels and collaborations with content creators like Tyler Perry have diversified offerings, attracting audiences that might otherwise opt for paid services [2]. Additionally, advancements in AI-driven personalization and metadata are enhancing user experiences, enabling precise ad targeting and improving retention [3]. These innovations align with investor expectations for scalable, data-driven growth.

Future Challenges and Opportunities

While Roku and FAST platforms are outpacing traditional TV, challenges remain. Ad-supported models must balance user experience with monetization, and competition from tech giants like Amazon and Apple could intensify. However, the industry’s trajectory suggests that FAST’s flexibility and Roku’s ecosystem dominance will continue to drive value. As unified-streaming.com notes, the integration of AI and metadata will further solidify FAST’s role as a sustainable alternative to linear TV [3].

For investors, the key takeaway is clear: the streaming transition is not a temporary trend but a structural shift. Companies that prioritize accessibility, innovation, and ecosystem integration—like Roku and FAST platforms—are best positioned to capture the long-term value of this evolving market.

**Source:[1] Streaming Reaches Historic TV Milestone, Eclipses [https://www.nielsen.com/news-center/2025/streaming-reaches-historic-tv-milestone-eclipses-combined-broadcast-and-cable-viewing-for-first-time/][2] Roku's 2025 Predictions: The Year Ahead in Streaming [https://advertising.roku.com/2025-predictions][3] FAST Channels Spread Fast in 2025 – How's the Industry Doing [https://www.allrites.com/post/fast-channels-spread-fast-in-2025-how-s-the-industry-doing][4] Connected TV Statistics: Viewership & Growth Trends (2025) [https://mountain.com/blog/connected-tv-statistics/][5] 2025 Media Trends: The Changing World of Watching [https://www.scale-marketing.com/blog/2025-media-trends-the-changing-world-of-watching/]