Japan, known for its preference for physical media, has finally embraced the era of video streaming. According to a report by data analytics company AMPD, Japan’s premium Video-On-Demand (VOD) category recorded a significant increase in subscriptions, surpassing 52 million in 2023.
A Maturing Streaming Market
The report reveals that Japan’s VOD ecosystem has become both large and competitive. Leading the pack was local broadcaster-led AVOD platform, Tver, which boasted over 20.2 million monthly average users (MUAs) and accounted for 38% of premium VOD viewership in 2023. Meanwhile, Amazon’s Prime Video took the lead in the Subscription Video-On-Demand (SVOD) category with 19.7 million MUAs, followed by U-Next with 8.2 million and Netflix with 7.5 million.
Changing Viewing Trends
Interestingly, despite the surge in subscriptions, the number of minutes watched on premium streaming services saw a slight decline from 110 billion minutes in 2022 to 102 billion in 2023. However, this shift in viewing habits did not hinder the growth of the industry.
Success at the Core
Japanese anime, live-action dramas, and variety content played a significant role in the success of the SVOD category, accounting for 65% of viewership and contributing to over 50% of customer acquisition in 2023. Licensed local dramas were key engagement drivers for platforms like Tver, U-Next, and Hulu Japan, where popular TV hits found a second life. Meanwhile, original dramas and variety shows had a clear impact on the acquisition of new subscribers for Netflix and Prime Video.
The Rise of U-Next
U-Next emerged as the leading local player in the SVOD market, standing out with high average revenues per user (ARPUs). Its acquisition of Paravi, coupled with a robust offering of anime, local TV shows, and sports content, contributed to its success.
With the cumulative subscription revenue of the top five platforms, including Amazon Prime Video, Netflix, U-Next, Disney+, and Hulu Japan, reaching $3.3 billion in 2023, it is evident that Japan’s SVOD economy is flourishing. Prime Video and Netflix dominated the market, capturing 23% and 21% of total subscription revenue, respectively. U-Next, with a 30% share of net new subscriber additions, was the fastest-growing player in 2023.
In conclusion, Japan’s streaming sector has finally come of age, with over 52 million subscriptions and a thriving SVOD market. With engaging content and a fierce competition among local and international players, the future looks promising for Japanese viewers and streaming platforms alike.
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