Japan SVOD revenues to increase by more than double by 2025

Japan’s SVOD market is set to grow to US$6.3 billion in revenue by 2025.

According to GlobalData, the east Asian country’s SVOD service revenue will grow at a CAGR of 17.7% from US$2.8 billion in 2020 to US$6.3 billion in 2025.

The growth, the firm says, will come as a result of increasing SVOD subscriptions and a steady rise in average monthly revenue per SVOD household.

SVOD subscriptions in Japan will increase at a CAGR of 11.9% during 2020-2025 due to the continued rise in household penetration of fixed broadband services, with fibre set to significantly grow.

This will have a knock-on effect on the monthly average SVOD revenue per unique SVOD household. This will grow from US$ $9.99 in 2020 to $14.01 in 2025 due to increasing adoption of premium video content. 

Hrushikesh Mahananda, Telecom Analyst at GlobalData, said: “Premium video services coupled with local content is key to the success of OTT video platforms over traditional broadcast services in the country.

“Amazon Prime Video platform will hold the largest share of Japan’s SVOD services market, by subscriptions through the 2020-2025 period. This growth can be attributed to the company’s wide, distinct pool of local and original content library, competitive pricing, e-commerce bundling and its partnership with telecom operators such as NTT Docomo and KDDI for local distribution offerings.”

Tags: GlobalData

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