According to GlobalData, the data and analytics company, this will place the Japanese subscription video on demand market-backed rising SVoD subscriptions and increasing unique household penetration along with the modest growth of the average monthly revenue per unique SVoD household-at a CAGR of 6.8 per cent from $4 billion (€3.6bn) in 2023 to $5.6 billion in 2028.
According to GlobalData estimates, the household penetration of fixed broadband services, primarily fiber optic, FTTH/B, will further drive SVoD market growth in Japan from 2023 to 2028, given that switching these services is directly forcing users away from traditional pay-TV toward OTT video platforms.
Kantipudi Pradeepthi, Telecom Analyst at GlobalData, says, “The projected growth in monthly average SVoD revenue per unique SVoD household from $9.76 in 2023 to $11.68 in 2028 is likely to be driven by growing consumption of premium video content in the country.”
Pradeepthi adds, “The SVoD market of Japan is immensely competitive, with many players competing for subscriber acquisition and retention through exclusive content.” Amazon Prime Video, Netflix, and Hulu are leading the service providers with a wide portfolio of exclusive content. Meanwhile, local players such as dTV and U-Next are investing highly in producing exclusive and premium Japanese content to meet the strong demand for localized content.
