Market Insights Advertising & Media Media TV & Video

OTT Video - Japan

Japan

Revenue in the OTT Video market is projected to reach €9.17bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.07%, resulting in a projected market volume of €11.74bn by 2029.
The largest market is OTT Video Advertising with a market volume of €4.81bn in 2024.
In global comparison, most revenue will be generated in the United States (€123,300.00m in 2024).
In the OTT Video market, the number of users is expected to amount to 84.7m users by 2029.
User penetration will be 65.4% in 2024 and is expected to hit 71.0% by 2029.
The average revenue per user (ARPU) in the OTT Video market is projected to amount to €114.20 in 2024.
The usage share of TVer amounts to an estimated 19.0% of the Videostreaming (SVoD) segment and the selected region in 2023.

Key regions: United Kingdom, Germany, Asia, South Korea, Japan

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Analyst Opinion

The OTT Video market in Japan is experiencing significant growth and development, driven by various factors such as changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Japan are shifting towards digital streaming platforms for video content consumption. With the increasing availability of high-speed internet and the proliferation of smartphones and smart TVs, consumers are opting for the convenience and flexibility offered by OTT Video services. The ability to access a wide range of content anytime, anywhere, and on multiple devices is a key driver of this shift in preferences. Trends in the market indicate a growing demand for local and international content on OTT Video platforms in Japan. Streaming services that offer a diverse selection of Japanese dramas, anime, and movies are gaining popularity among domestic consumers. At the same time, international content, especially from the United States and South Korea, is also attracting a significant audience. This trend is fueled by the increasing popularity of Japanese pop culture globally, as well as the availability of localized subtitles and dubbing options. Local special circumstances also contribute to the development of the OTT Video market in Japan. The country has a strong tradition of home video rental stores, known as "video rental shops," which have been a popular source of entertainment for decades. However, with the rise of digital streaming platforms, these physical rental stores are gradually being replaced by online services. This transition is further accelerated by the COVID-19 pandemic, which has led to a surge in demand for online entertainment options. Underlying macroeconomic factors, such as the growth of the digital economy and increasing disposable income, are driving the expansion of the OTT Video market in Japan. The country has a highly developed internet infrastructure, making it easier for consumers to access and stream video content. Additionally, rising disposable income levels allow consumers to afford subscription fees for multiple OTT Video services, further fueling market growth. In conclusion, the OTT Video market in Japan is experiencing rapid growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital streaming platforms, the demand for diverse content, the transition from physical rental stores to online services, and the growth of the digital economy are all contributing to the development of this market. As these factors continue to evolve, the OTT Video market in Japan is expected to witness further expansion in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.