Japan’s total pay TV services revenue is set to register a compound annual growth rate (CAGR) of 1.9% during 2019-2024, increasing from US$8.9 billion in 2019 to US$9.8 billion in 2024, according to revised pay TV forecasts from data and analytics company GlobalData.
GlobalData’s “Japan Telecom Operators Country Intelligence Report” indicates that the overall growth in the pay TV services revenues will be primarily supported by improving the aggregate average revenue per user (ARPU) from pay TV services over the forecast period 2019-2024, despite the ongoing cord-cutting trends triggered by growing demand for OTT-based video services in Japan. Overall pay TV ARPUs will grow from US$36.01 in 2019 to US$40.37 in 2024, with growing ARPUs from cable, direct-to-home (DTH) and Internet Protocol television (IPTV) services.
“Cable will be the leading technology to deliver pay TV services in Japan over 2019-2024. However, its share of the total pay TV service subscriptions will continue to decline with the growing adoption of IPTV services. Improving coverage of high-speed fiber broadband networks will support the delivery of IPTV services in Japan,” said Deepa Dhingra, Telecom Analyst at GlobalData.
“KDDI will lead the pay-TV service segment over 2019-2024, supported by its strong foothold in the cable segment and focus on providing cost-effective multi-play packages to compete in the market. For instance, it is offering a cable-plus phone bundled plan at a price of ¥1,330 (US$12.2) along with additional benefits such as lower call rates and an additional discount of ¥100/month for ‘au mobile phone' subscribers,” the analyst added.
Cable will be the leading technology to deliver pay TV services in Japan over 2019-2024” Deepa Dhingra Telecom Analyst at GlobalData