Japan’s SVoD Revenue to Hit $5.6B by 2028

The subscription video on demand (SVoD) market in Japan is projected to grow at a compound annual growth rate (CAGR) of 6.8% from $4 billion (€3.6bn) in 2023 to $5.6 billion in 2028, driven by an increase in SVoD subscriptions, unique household penetration, and a steady rise in the average monthly revenue per unique SVoD household, according to GlobalData, a data and analytics company.

GlobalData’s forecast for Japan’s SVoD market indicates that this growth from 2023 to 2028 will be fueled by the rising household penetration of fixed broadband services, especially fiber optic (FTTH/B) services, which is leading consumers to shift from traditional pay-TV to OTT video platforms.

Kantipudi Pradeepthi, Telecom Analyst at GlobalData, notes, "The projected rise in the monthly average SVoD revenue per unique SVoD household from $9.76 in 2023 to $11.68 in 2028 is expected to be driven by the increasing consumption of premium video content in the country."

Pradeepthi further adds that Japan’s SVoD market is highly competitive, with many players striving to attract new customers and retain existing ones by offering exclusive content. Major service providers like Amazon Prime Video, Netflix, and Hulu dominate the market with a broad range of exclusive offerings, while local players such as dTV and U-Next are also investing heavily in the production of exclusive and premium Japanese content to meet the strong demand for localized material.

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