Japanese pay-TV set to grow services revenue over next five years | Media Analysis | Business
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Despite the effects that Covid-19 has had in the country, specifically the postponement of the 2020 Olympics Games which promised a TV extravaganza, Japan’s total pay-TV services revenue is set to register a CAGR of 1.9% from 2019-2024, increasing from US$8.9 billion in 2019 to US$9.8billion in 2024, according to forecasts from GlobalData.
GlobalData 24July2020
The Japan Telecom Operators Country Intelligence Report indicated that the overall growth in the pay-TV services revenues will be primarily supported by improving the aggregate average revenue per user (ARPU) from pay-TV services over the forecast period 2019-2024, despite the ongoing cord-cutting trends triggered by growing demand for OTT-based video services in Japan. Overall pay-TV ARPUs will grow from US$36.01 in 2019 to US$40.37 in 2024 with growing ARPUs from cable, direct-to-home (DTH) and Internet Protocol television (IPTV) services.

GlobalData predicted cited that cable will be the leading technology to deliver pay-TV services in Japan over 2019-2024 although its share of the total pay-TV service subscriptions will continue to decline with the growing adoption of IPTV. Improving coverage of high-speed fibre broadband networks will support the delivery of IPTV services in Japan.

KDDI is set to be the leading pay-TV provider from 2019-2024, supported by what the analyst says is its strong foothold in the cable segment and focus on providing cost-effective multi-play packages to compete in the market. The Japan Telecom Operators Country Intelligence Report highlighted the fact that it is offering a cable-plus phone bundled plan at a price of ¥1,330 (US$12.2) along with additional benefits such as lower call rates and an additional discount of ¥100/month for the au mobile phone subscribers.”