Japan SVOD revenue to grow to $6.3bn in 2025Tuesday, November 16th, 2021
Japan SVOD services market revenue to reach US$6.3bn in 2025, forecasts GlobalData
The subscription video on demand (SVOD) service revenue in Japan is expected to increase at a robust compounded annual growth rate (CAGR) of 17.7% from US$2.8bn in 2020 to US$6.3bn in 2025, driven by increasing SVOD subscriptions and steady rise in average monthly revenue per SVOD household, according to GlobalData, a leading data and analytics company.
GlobalData’s Japan Subscription Video on Demand Forecast (Q2-2021) reveals that the SVOD subscriptions in the country will increase at a CAGR of 11.9% during 2020-2025 benefiting from the continued rise in household penetration of fixed broadband services, particularly fiber optic (FTTH/B) services, and the subsequent consumer shift from traditional pay-TV services to various OTT video platforms.
The projected rise in the monthly average SVOD revenue per unique SVOD household from US$ $9.99 in 2020 to $14.01 in 2025, driven by increasing adoption of premium video content, will also lend traction to the overall SVOD revenue growth over the forecast period.
Hrushikesh Mahananda, Telecom Analyst at GlobalData, says: “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.”