The subscription video on demand service revenue in Japan is expected to increase at a compound annual growth rate (CAGR) of 10.1% from $4.5 billion in 2022 to $7.3 billion in 2027, driven by the strong growth in SVOD subscriptions and unique SVOD households, and a steady rise in the average monthly revenue per unique SVOD household, forecasts data and analytics company GlobalData.
GlobalData’s “Japan Subscription Video on Demand Forecast Model (Q3-2022)” report reveals that the growth in SVOD subscriptions in the country during 2022-2027 will be supported by the continued rise in household penetration of fixed broadband services, particularly fiber optic (FTTH/B) services, and the subsequent consumer shift from traditional pay-TV services to various OTT video platforms.
“The projected rise in the monthly average SVOD revenue per unique SVOD household from $11.93 in 2022 to $15.29 in 2027 is expected to be driven by the increasing consumption of premium video content in the country,” commented Aasif Iqbal, Telecom Analyst at GlobalData.
Regarding platforms, Prime Video will lead Japan’s SVOD market and will account for the largest share of SVOD subscriptions through the forecast period followed by Netflix. Amazon’s growth can be attributed to its complementary offering of its e-commerce service with the same subscription amount, and competitive pricing. Additionally, the availability of local Japanese content, including licensed anime and American films and television shows, will also help Prime Video maintain its leadership position during the forecast period.