According to a recent Global Data report, pay-TV services in Japan can look forward to promising growth despite recent declines. The industry is expected to grow at an annual rate of 2.2% between 2020 and 2025. “Despite the steady decline in subscriptions, cable TV will account for the largest share of total pay-TV subscriptions in the country through the forecast period,” Deepa Dhingra, Senior Telecom Analyst at GlobalData, said.
The data and analytics company cable TV and direct-to-home (DTH) pay-TV accounts will decline at -0.2% and -0.8% CAGRs between 2020 and 2025 while IPTV accounts are set to grow by 1.1% CAGR over the same period. “IPTV’s share of total pay-TV subscriptions, on the other hand, will increase from 27% in 2020 to 29% in 2025, supported by growing fiber network coverage in the country, which supports the delivery of quality IPTV services,” Dhingra explains.
The decline in total pay-TV accounts in the country is primarily due to the cord-cutting trend growing as a result of consumers' transition to OTT platforms, through the increases are mainly attributed to strong cable TV segments and IPTV service prioritization, bundle packages merged with phone service are also credited for the growth.“KDDI led the mobile market in terms of pay-TV subscription share in 2020, closely followed by NTT," Dhingra said.
Aggregate pay-TV ARPUs will likely increase by US$36.52 in 2020 to US$40.52 in 2025 with growing ARPUs from cable, DTH, and Internet Protocol television (IPTV) services supporting the overall pay-TV service revenue growth. "KDDI will remain the leading pay-TV service provider through 2025," Dhingra continued.
Despite the steady decline in subscriptions, cable TV will account for the largest share of total pay-TV subscriptions in the country through the forecast period.” Deepa Dhingra Senior Telecom Analyst, GlobalData
