Japan: Multi-play service revenue to increase at 4% CAGR
October 18, 2023
The total multi-play service revenue in Japan is set to increase at a compound annual growth rate (CAGR) of 4 per cent from $29.5 billion in 2022 to $36 billion in 2027, driven by the rising demand for blended services and growing number of multi-play households in the country, according to GlobalData, the data and analytics company.
GlobalData’s Japan Multiplay Forecast (Q1 2023) reveals that the average monthly household spend on multi-play service bundles will increase from $55.26 in 2022 to $59.13 in 2027, primarily driven by the increasing adoption of double-play and triple-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.
Kantipudi Pradeepthi, Telecom Analyst at GlobalData, commented: “Double-play services will remain the most popular multi-play service category through the forecast period, its share of total multi-play households will increase from 62.6 per cent in 2022 to 66.1 per cent in 2027. Triple-play and quad-play services, on the other hand, will see their share of total multiplay-households to grow from 15.9 per cent and 2.7 per cent in 2022 to 20.3 per cent and 4.1 per cent in 2027, respectively.”
The adoption of multi-play packages in Japan will be boosted by the growing broadband network coverage in the country, especially the increasing availability of high-speed fibre-optic broadband services.
Pradeepthi concluded: “KDDI will lead the double-play and quad-play markets, by subscription share, through the forecast period driven by its promotional service bundles inclusive of fixed broadband, telephony, pay-TV, and mobile services along with multi-channel TV broadcasts and other value-added benefits, at discounted rates. NTT, on the other hand, will continue to lead the triple-play segment in terms of households through 2027.”