Japan's video streaming market: U-NEXT expands its market share and closes in on Netflix, the leader for five consecutive years. SVOD Market continued to grow, exceeding 500 billion yen (up 12.1% YoY)

Tokyo Japan, February 16th, 2024 - GEM Partners, a provider of data and digital marketing services for the entertainment industry, published a report called "Japan's Video-on-Demand (VOD) Market 5-Year Forecast (2024-2028)," which estimates the size of Japan's VOD market in 2023 and forecasts the market size for each year after that through 2028 under three scenarios. In this release, we present the size and share of the subscription video-on-demand (SVOD) market in Japan by service as excerpts from the report.

Japan's subscription video-on-demand (SVOD) market is estimated at 505.4 billion yen in 2023 (+12.1% YoY)

Japan's market for subscription video-on-demand (SVOD) services in 2023 is estimated to be 505.4 billion yen, up 12.1% from the previous year. Market share is calculated by the estimated total amount consumers pay to subscription service providers and does not include advertising and other revenues.

The market size has continued to expand: 322.2 billion yen in 2020 (up 34.7% from the previous year), 386.2 billion yen in 2021 (up 19.9% from the previous year), and 450.8 billion yen in 2022 (up 16.7% from the previous year) reflecting the growing demand for home entertainment during the Pandemic. Although the momentum has slowed somewhat, the market continues to expand.

Netflix gained the No. 1 market share for the fifth year in a row but decreased year over year. U-NEXT maintained its No. 2 position by expanding its market share through integration with Paravi.

Looking at the share of each service in Japan's SVOD market, Netflix has maintained the top position since 2019. This is the fifth consecutive year it has held the top position despite two consecutive years of year-on-year declines.

U-NEXT was the next largest service, with 15.0% of the market share (+2.4 pt year-on-year). U-NEXT has continued to increase its market share since 2019, and in 2022, it surpassed Amazon Prime Video to take second place. We saw a further increase in market share due to the service integration with Paravi starting in July 2023. (*Paravi's market share figure is until June as a stand-alone service. After the merger with U-NEXT, Paravi's market share is included in U-NEXT's figure.)

Of the 14 services surveyed this year, "U-NEXT," "Amazon Prime Video," "dAnime Store," and "FOD (FOD Premium)" increased their share from the previous year. U-NEXT increased its share the most from the previous year.

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The report includes market size and share trends by service for subscription-based video distribution (SVOD), rental-type video distribution (TVOD), and video sales (EST). It also estimates the market size of the overall video distribution market, including SVOD, TVOD, and EST, in 2023 and forecasts the market size until 2028 based on "base," "optimistic," and "pessimistic" scenarios. Furthermore, the above estimation logic is detailed so readers can confirm the method.

Report specification
Product name: Japan's Video-on-Demand (VOD) Market 5-Year Forecast (2024-2028)
Published Date: February 16, 2024
Language: English / Japanese
Deliverable Option: Report (PDF), Aggregate data(Excel)
The total number of pages: 28 pages