The SVoD service revenue in Japan is expected to increase at a robust compounded annual growth rate (CAGR) of 17.7 per cent from $2.8 billion (€2.4bn) in 2020 to $6.3 billion in 2025, driven by increasing SVoD subscriptions and steady rise in average monthly revenue per SVoD household, according to GlobalData, the 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 per cent during 2020-2025 benefiting from the continued rise in household penetration of fixed broadband services, particularly fibre 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 $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, commented: “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.”