What's Happening?
Japan's premium video-on-demand market achieved a significant milestone in 2025, reaching $7.2 billion in total revenue, marking a 15% increase from the previous year. This growth is attributed to diversified revenue models, including ad-supported subscriptions
and increased investment in domestic programming and live sports rights. Netflix, Prime Video, and U-Next collectively control half of the market's revenue. Netflix leads in revenue share with 22%, while Prime Video has the highest subscriber count at 19.3 million, benefiting from its integration with broader retail operations. U-Next holds 12% of the market, offering a unique content package that includes streaming video, manga, music, and exclusive sports programming. The market saw a net gain of 4 million subscribers in 2025, with Netflix driving the largest gains through strategic partnerships and original content. The Disney+/Hulu Japan package also expanded its reach, contributing to the overall growth.
Why It's Important?
The expansion of Japan's streaming market highlights the increasing importance of digital content consumption and the strategic moves by major players to capture market share. The dominance of Netflix, Prime Video, and U-Next underscores the competitive landscape where international and local services vie for consumer attention. This growth impacts the global streaming industry by setting benchmarks for revenue models and content strategies. The focus on local productions and live sports rights indicates a shift towards more personalized and culturally relevant content, which could influence content strategies in other regions. The market's evolution also reflects broader trends in media consumption, where traditional broadcasting is increasingly supplemented or replaced by on-demand services.
