Japan subscription video on demand revenue to grow at 10.1% CAGR during 2022-2027
The subscription video on demand (SVoD) 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 GlobalData, a leading data and analytics company.
GlobalData’s Japan Subscription Video on Demand Forecast Model (Q3-2022) 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.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “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.
“Amazon Prime Video will lead the 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 licenced anime and American films and television shows, will also help Amazon Prime Video maintain its leadership position during the forecast period.” Global Data