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Japan Becoming SVOD Focus

26 Sep, 2017 By: Erik Gruenwedel

With the second-largest home entertainment market in the world after the United States, Japan is becoming a hotbed for subscription streaming video, spearheaded by Netflix, Amazon Prime Video and Hulu — the latter owned by Nippon TV.

The three SVOD pioneers have seen their combined market share grow from 23% to 56% in the past two years, and will reach more than 6.5 million subs by the end of 2017, according Ampere Analysis.

Indeed, the SVOD market in Japan is now the fifth-largest globally — trailing the U.S., China, Germany and the United Kingdom.

Ampere said that as market share grows, so too does available content. Netflix has increased content selection in Japan nearly 35% since the fourth quarter last year, dropping to 20% in the Q1 this year. Amazon and Hulu have increased content selection about 10%.

Notably, Japan became the first*ever country to displace the U.S. as Netflix's largest market (by number of titles).

Ampere said Netflix Japan had more than 7.7 million titles in July, compared with 7.6 million in the U.S. Netflix Canada had 6.6 million, followed by 6.1 million for Netflix U.K., and 5.7 million for Netflix Brazil.

“In Japan there has been relentless growth in the volume of content available, due to the fierce subscriber competition present in the market. Both domestic and international titles have been in high demand during [the past 12 months],” analyst Ed Border wrote in a blog post.


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