Japan's video streaming sector has finally reached maturity, with a new report from data analytics company AMPD revealing some interesting statistics. According to the report, Japan's premium Video on Demand (VOD) category saw an increase in subscriptions from 50.6 million in 2022 to 52.6 million in 2023, resulting in subscription revenues of $4.5 billion as compared to $4.1 billion in the previous year.
However, despite the increase in subscriptions, there was a slight decrease in the number of minutes watched on premium streaming services, dropping from 110 billion minutes in 2022 to 102 billion minutes in 2023. These findings indicate that while more people are subscribing to VOD services, they may not be consuming content as heavily as before.
The report, titled Japan Online Video Consumer Insights & Analytics, utilized a permission-based passive panel comprising over 19,000 members in partnership with the Intage Group to analyze digital activity. It also highlights the competitiveness of Japan's VOD ecosystem, with various players vying for audience attention.
The local broadcaster-led AVOD platform, Tver, stood out as one of the dominant platforms in Japan, boasting over 20.2 million monthly average users (MUAs) and accounting for 38% of premium VOD viewership in 2023. Amazon's Prime Video led the Subscription Video on Demand (SVOD) category with 19.7 million MAUs, followed by U-Next (8.2 million) and Netflix (7.5 million). In terms of user engagement, Tver and Netflix took the lead, with an average of 8.8 and 7.3 hours spent per user each quarter, respectively.
The report also reveals that five platforms—Amazon Prime Video, Netflix, U-Next, Disney+, and Hulu Japan—shaped Japan's SVOD economy in 2023. Collectively, these platforms generated $3.3 billion in subscription revenue, with a combined total of 38.0 million subscribers by the year's end. Prime Video and Netflix were the top monetizers, accounting for 23% and 21% of total subscription revenue, respectively.
U-Next emerged as the fastest-growing player in the SVOD space in 2023, capturing a significant share of net new subscriber additions at 30%. When it comes to SVOD-only viewership, Prime Video came out on top with 24%, trailed closely by Netflix with 21%. U-Next and Abema TV followed with 14% and 13% viewership share, respectively. Notably, Disney+ only captured 3% of viewership, while Hulu Japan, owned by NipponTV, claimed just 2%.
U-Next's success can be attributed to several factors, including its acquisition of Paravi, which led to high average revenue per user (ARPU), and a robust offering of anime, local TV shows, and sports content. The report emphasized that Japanese anime, live-action dramas, and variety shows accounted for 65% of viewership in the premium VOD category and played a significant role in customer acquisition for SVOD platforms.
Licensed local dramas proved to be important engagement drivers for Tver, U-Next, and Hulu Japan, as popular TV shows found a second life on these platforms. Additionally, original dramas and variety content had a noticeable impact on customer acquisition for Netflix ('Love Village,' 'First Love') and Prime Video ('The Bachelor'). Another noteworthy finding was that anime held a central place in SVOD viewership, with all major platforms offering extensive libraries of non-exclusive and current anime. The exclusive release of 'One Piece Film: Red' on Amazon demonstrated the substantial customer acquisition impact that anime content can have.
With the Japanese video streaming market now mature and competitive, it will be interesting to see how these platforms continue to evolve and attract viewers in the coming years.
