Rakuten TV has evolved significantly since its launch in 2013 as a transactional TVOD service. Today, the platform combines this business model, AVOD, and FAST channels, offering a diverse content ecosystem to over 140 million households across 43 European territories. Marcos Milanez, Chief Content Officer at Rakuten TV, recently shared insights into the platform’s growth, challenges, and strategies for the future.
The service began as a TVOD service, providing users with the latest movie releases to rent or purchase. However, in 2019, the platform expanded its offerings to include AVOD and FAST services, responding to the growing demand for free, ad-supported content. Today, OTT boasts 10,000 AVOD titles and over 500 FAST channels, including 100 owned and operated (O&O) channels tailored to key markets like Western Europe, the Nordics, the Netherlands, and Poland.
‘FAST has become a cornerstone of our business’, Milanez explained. ‘It complements our TVOD and AVOD offerings, giving users the freedom to choose how they want to consume content—whether they prefer to buy, rent, or watch for free with ads’. In fact, the executive attributes Rakuten TV’s success in the FAST space to three key pillars: scale, ad monetization, and content expertise.
Regarding scale pillar, the service’s decade-long partnerships with TV manufacturers and device providers have enabled the platform to reach millions of households. Its branded remote-control button and pre-installed app on smart TVs have been instrumental in driving user adoption. As for Ad monetization, leverages its in-house ad sales team, supported by Rakuten Advertising, to maximize revenue from its FAST channels. Local sales teams in key markets ensure strong connections with agencies and brands.
And for content expertise, due its years of experience in content licensing and production, has built a robust library of Hollywood and European films, documentaries, and series. Its ability to curate and schedule content has been critical to its FAST success.
‘Our existing relationships with major Hollywood studios and content distributors have made the transition from TVOD to AVOD and FAST smoother’, Milanez noted. ‘We understand the local content expectations in each market, which helps us deliver relevant programming’.
Challenges: content discoverability and user segmentation
Despite its successes, Rakuten TV faces challenges common to many streaming platforms. One of the most pressing is content discoverability. With thousands of titles and hundreds of channels, ensuring users can easily find what they want to watch remains a priority.
‘There’s still a lot to do in terms of user segmentation and customization’, Milanez admited. ‘These tools will be key to improving content discoverability and guiding users to their preferred form of access’.
In fact, Milanez believes that the growth of the European FAST market hinges on two factors: the availability of top-tier content IPs and the continued shift of advertising budgets to connected TV (CTV).
‘We need to see more premium content transition to FAST to attract mainstream audiences’, he said. ‘At the same time, the advertising market must continue to allocate more budget to CTV. The entry of SVOD services into AVOD, and new players into the European market, will help educate and incentivize this transition’.
Balancing innovation and UX
As Rakuten TV continues to expand its FAST offerings, the platform is focused on balancing innovation with user experience. While the FAST model has proven successful, Milanez emphasizes the importance of maintaining high-quality content and seamless ad integration to keep users engaged.
‘Our goal is to provide a diverse and accessible entertainment experience’, remarked. ‘Whether users want to rent the latest blockbuster, binge-watch a series, or tune into a free channel, we aim to make it easy and enjoyable’.
