Free ad-supported streaming TV (FAST) - Japan

Japan

Highlights

In Japan, revenue in the Free ad-supported streaming TV (FAST) market market is projected to reach US$226.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 14.88%, resulting in a projected market volume of US$452.60m by 2029.
In a global context, most revenue will be generated the United States, with a figure of US$5.24bn in 2024.
The average revenue per user (ARPU) in Japan's Free ad-supported streaming TV (FAST) market market is projected to amount to US$9.19 in 2024.
In this market, the number of users in Japan is expected to amount to 27.1m users by 2029.
User penetration in Japan will be 20.1% in 2024 and is expected to reach 22.8% by 2029.
Japan's Free ad-supported streaming TV (FAST) market is witnessing significant growth as consumers increasingly favor accessible content over traditional subscription services.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Free ad-supported streaming TV (FAST) market in Japan has been steadily growing in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Japanese consumers have shown a growing interest in streaming TV services, as they offer a convenient and cost-effective way to access a wide range of content. With an increasing number of households having access to high-speed internet, streaming services have become a popular choice for entertainment. Additionally, the younger generation, in particular, is more inclined towards digital platforms and prefers on-demand content that can be accessed anytime, anywhere.

Trends in the market: One of the key trends in the FAST market in Japan is the rise of local streaming platforms. While international players like Netflix and Amazon Prime Video continue to dominate the global streaming market, Japanese consumers have shown a preference for local content. This has led to the emergence of local streaming platforms that offer a wide range of Japanese TV shows, movies, and anime. These platforms have been successful in attracting a large user base by catering to the specific tastes and preferences of Japanese viewers. Another trend in the FAST market in Japan is the increasing popularity of ad-supported streaming services. As subscription fatigue sets in, more consumers are turning to free streaming platforms that are supported by advertising. This allows them to access a variety of content without having to pay a monthly subscription fee. Ad-supported streaming services have also gained traction among advertisers, as they offer a targeted and measurable way to reach a large audience.

Local special circumstances: Japan has a unique media landscape with a strong focus on traditional television broadcasting. While streaming services are gaining popularity, traditional TV networks still hold a significant share of viewership. As a result, local streaming platforms have had to strike partnerships with traditional broadcasters to gain access to popular content and attract viewers.

Underlying macroeconomic factors: The growth of the FAST market in Japan can also be attributed to favorable macroeconomic factors. The country has a high internet penetration rate and a technologically advanced infrastructure, which enables seamless streaming experiences. Additionally, the COVID-19 pandemic has accelerated the adoption of streaming services, as people spent more time at home and sought entertainment options online. This has further fueled the growth of the FAST market in Japan. In conclusion, the Free ad-supported streaming TV (FAST) market in Japan is witnessing steady growth due to changing customer preferences, the rise of local streaming platforms, the increasing popularity of ad-supported services, local special circumstances, and underlying macroeconomic factors. As streaming continues to gain traction in the country, it is expected that the FAST market in Japan will continue to expand in the coming years.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats from services that offer free content supported with advertisements.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.