A new industry analysis by consultancy firm Media Partners Asia (MPA) projects substantial growth in Japan‘s digital entertainment landscape. The report, “The Future of Japan’s Video Industry,” forecasts the online video sector to expand at a 7% compound annual growth rate over the next five years.
Total screen industry revenue, encompassing free TV, pay-TV and theatrical releases, is expected to climb from $31.8 billion in 2024 to $34.1 billion by 2029. Online video’s share of this pie is set to increase from 35% to 45% during this period, reaching $15.3 billion.
YouTube leads the user-generated content space, while Netflix, Prime Video and U-Next dominate the subscription video-on-demand (SVOD) arena. TVer heads the premium advertising-supported video sector.
Japanese anime maintains its cultural and economic significance, representing 36% of premium VOD engagement through Q3 2024. The format generated $2.5 billion across TV, streaming, and theatrical releases in 2023, with streaming platforms now accounting for half of all anime revenue, followed by television at 27%.
The report identifies more than 20 studios contributing to 70% of top-performing SVOD content, with Japanese anime claiming 117 of the top 200 titles. Studios including TMS Entertainment, TBS, and Aniplex drive this trend through franchises and series. Hollywood content from WBD, Paramount, Disney and Sony rounds out the most-watched programming.
According to MPA executive director Vivek Couto, the market is primed for continued expansion, with fiber broadband reaching 82% of households and connected TV penetration on track to hit 51% by 2029. Major telcos KDDI and NTT have emerged as key streaming partners.
Couto added: “Netflix, Prime Video and local giant U-Next will lead SVOD monetization in the future while Disney+ will remain the fourth largest player and Max will emerge with a material share through its B2B partnership with U-Next and eventual D2C rollout. Tver, owned by the major FTA broadcasters, will continue to grow its share of the premium AVOD category with strong CTV monetization. Encouragingly, the number of theatrical releases has recovered back to pre-COVID levels and local movies continue their dominance at home with 70% share of gross box office.”
The Streaming Wars is intentionally ad-free
We don’t run display ads. Not because we can’t, but because we don’t believe in them.
They interrupt the reading experience. They cheapen the work. And they burn advertisers’ money on impressions nobody actually wants.
So we chose a different model.
We say the things people in this industry are already thinking but don’t say out loud. We connect the dots beyond the headline and focus on explaining why things matter to the people working in this business.
If you believe industry coverage can exist without clutter and interruption, you can support it here → SUPPORT TSW.
Support is optional. But it directly funds research and continued coverage — and helps prove this model can work.
Support TSW →
