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Forecast: Japan multi-play service revenue set for increase

October 18, 2022

The total multi-play service revenue in Japan is set to increase at a compound annual growth rate (CAGR) of 7 per cent from $32.5 billion in 2021 to $45.6 billion in 2026, driven by strong demand for blended services and growing number of multi-play households in the country, according to GlobalData, the data and analytics company.

An analysis of GlobalData’s Japan Multi-Play Forecast Model (Q2-2022) indicates that the average monthly household spend on multi-play service bundles will increase from $63.50 in 2021 to $77.30 in 2026, primarily driven by the increasing adoption of high value triple-play and quad-play service bundles built on fibre optic (FTTH/B) broadband services, and plans with premium benefits such as gigabit speeds, and unlimited access to music platforms.

Aasif Iqbal, Telecom Analyst at GlobalData, said: “The adoption of multi-play packages in Japan will be boosted by growing broadband network coverage in the country, especially the increasing availability of high-speed fiber-optic broadband services.”

Though double-play services will remain the most popular multi-play service category through the forecast period, its share of total multi-play households will drop from 76.8 per cent in 2021 to 72.4 per cent in 2026. Triple-play and quad-play services, on the other hand, will see their household share grow from 19.2 per cent and 4 per cent in 2021 to 22.1 per cent and 5.5 per cent in 2026, respectively.

Iqbal concluded: “KDDI will lead the double-play market, by subscription share, through the forecast period banking on its promotional service bundles inclusive of fixed broadband, telephony, pay-TV, and mobile services along with access to music platforms and other value-added benefits, at discounted rates. NTT, on the other hand, will continue to lead the triple-play and quad-play segments in terms of households through 2026.”

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