Summary

The OTT market in Japan is one of the largest in Asia, with a large and growing user base. The market is dominated by a few large companies, including Netflix, Amazon Prime Video, and Hulu, which offer a wide range of content to Japanese users. Local players, such as dTV and U-NEXT, also have a significant market share. The platforms offer a mix of licensed content, original productions, and user-generated content. There is a strong demand for local content in Japan, and the platforms are investing in producing and licensing high-quality Japanese content. The primary revenue sources for OTT platforms in Japan include subscription fees, advertising, and e-commerce. The Japan OTT market is highly competitive, with each platform striving to offer the best user experience and exclusive content to attract and retain users. The Japanese government regulates the OTT market, but the regulations are generally favorable to the industry's growth. The Japan OTT market is expected to continue growing in the future, driven by increasing internet penetration and a growing middle class with high disposable income. The demand for high-quality, locally produced content is also expected to increase, providing new opportunities for OTT platforms.

According to the research report, "Japan over the Top (OTT) Market Overview, 2028," published by Bonafide Research, the market is anticipated to add USD 11.63 Billion by the end of 2028. Due to the increase in the number of digital video consumers, media and entertainment dominated over-the-top market share during the forecast period. This will increase demand for OTT services in the media and entertainment industry. However, the communication industry is expected to grow at the fastest rate during the forecast period due to an increase in demand for over-the-top services in the telecommunications industry for video calling, voice, and messaging services. By Device type, SmartTVs and set-top boxes dominated the market share. Because of the larger screen and easy switching options between cable and OTT platforms. Furthermore, as smartphone penetration increased, smartphones became the second most popular device for streaming OTT platforms. They are also inexpensive, allowing people of all income levels to use smartphones and streaming platforms. During the forecasted period, subscription VOD is expected to manage the market. This is primarily due to an increase in the number of subscribers using over-the-top (OTT) platforms. Furthermore, due to the high demand for advertising videos for product and service promotion, advertisement-based VOD is steadily increasing. The market is divided into personal and commercial user types. The market is expected to be driven by the personal user segment. The growing use of smartphones and tablets, as well as easily accessible internet, raises the market's perception of OTT services for personal entertainment and knowledge.

According to a finding, In Japan more than 25% of people watch music videos. More than 15% of people watch a comedy, meme, or viral video. More than 15% of people watch video livestreams. Around 7.5% of people watch educational videos. More than 15% of people watch sports highlights or clips. Around 20% of people watch Gaming Videos. Around 9% of people watch Influencer videos and vlogs. In Japan population ranging from16 to 64 years, the average amount of time that China users spend each day includes more than 4 hours on the internet, around 2 hours on television, around 1 hour for social media, and around 30 min listening to music streaming services. In the Japan OTT market, some of the major reasons for the higher utilization of the internet In Japan population ranging from16 to 64 years include finding information, researching how to do things, finding new ideas and inspiration, staying in touch with friends and family, researching brands, education and study, watching videos, TV shows, and movies, listening to music, researching health issues and products, researching places, travelling, business networking, and many more.

Japan’s total population was 125.8 million in January 2022.In January 2022, Japan had more than 120 million internet users. At the beginning of 2022, Japan's internet penetration rate was greater than 95 percent of the total population. Around 7.55 million people in Japan did not use the internet at the start of 2022, representing 6.0 percent of the population at the start of the year. In January 2022, Japan had more than 100 million social media users. According to LINE's Business resources, LINE had 89 million users in Japan at the start of 2022. According to Meta's advertising resources, Facebook had 15.55 million users in Japan. According to Google's advertising resources, YouTube had 102.0 million users in Japan. According to Meta's advertising tools, Instagram had 46.10 million users in Japan. According to ByteDance's advertising resources, TikTok had 15.19 million users aged 18 and up in Japan. According to Meta's advertising resources, ads on Facebook Messenger reached 5.85 million users in Japan. According to LinkedIn's advertising resources, the company had 3.00 million "members" in Japan. According to Snap's advertising resources, Snapchat had 825.0 thousand users in Japan. According to Twitter's advertising resources, Twitter had 58.95 million users in Japan.

During the COVID -19 pandemic, film studios and content creators have been hit hard by cinema complex/hall closures. National producers are increasingly turning to OTT to deal with the situation. The prolonged lockdowns and the current state of the economy have thrown open the doors to the world of entertainment via OTT. People are wary of going to theatres to watch entertainment content, so OTT media platforms have grown in popularity. Netflix, for example, has stepped in to fill the void. To reach viewers, entertainment content producers are turning to OTT service providers. With so many OTT services available to users, it is difficult to attract and retain new subscribers. Customers typically receive free or discounted introductory offers. Subscribers can sign up for a free trial and then cancel when it expires; in the meantime, a lack of new content drives away subscribers and the complex user interface can cause customers to unsubscribe from the service.

Considered in this report
• Geography: Japan
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Japan Over The Top (OTT) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• AVOD (Advertising-based Video On Demand)
• SVOD (Subscription Video on Demand)
• TVOD (Transactional Video on Demand)
• Others

By Device Type:
• Smartphones and Tablets
• Desktops and Laptops
• Smart TVs & Set-Top Box
• Gaming Consoles & Streaming Devices

By Content Type:
• Video Streaming
• Game Streaming
• Audio Streaming
• Communication

By Service Verticals:
• Media and Entertainment
• Education and Learning
• Gaming
• Service Utilities

By User Type:
• Personal
• Commercial

By Component Type:
• Solution
• Services

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.