What's Happening?
Japan's premium streaming sector experienced a significant growth of 15% in 2025, reaching a total revenue of $7.2 billion, according to a report by Media Partners Asia (MPA). This growth was driven by the expansion of ad-supported tiers, an increase
in local content, and the inclusion of live events and sports. Netflix emerged as the leading player, commanding a 22% share of the premium video-on-demand market, followed by U-Next with a 12% share. The sector added four million subscribers, bringing the total to 67.3 million. Prime Video maintained its position as the largest streamer in Japan by subscriber base, with 19.3 million subscribers. The report highlighted the importance of Japanese drama and anime, with the latter accounting for 26% of viewing hours. The entry of major players into live sports and the continued dominance of local anime and drama are expected to shape the next phase of competition.
Why It's Important?
The growth of Japan's premium streaming sector underscores the increasing demand for digital content and the strategic importance of localizing content to cater to regional preferences. This trend reflects a broader shift in the entertainment industry towards digital platforms, which are becoming crucial for content distribution. The dominance of companies like Netflix and Prime Video highlights the competitive landscape and the need for continuous innovation to capture market share. The sector's expansion also indicates potential opportunities for content creators and advertisers to engage with a growing audience. As streaming services continue to integrate live sports and local content, they are likely to attract more subscribers, further driving revenue growth.
