Public TV Licence Fees - Japan

Japan

Highlights

In Japan, revenue in the Public TV Licence Fees market market is projected to reach US$7.86bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.43%, resulting in a projected market volume of US$8.03bn by 2029.
The average revenue per user (ARPU) Japan is expected to amount to US$91.04.
In global comparison, most revenue will be generated Japan, with figures reaching US$7.86bn in 2024.
Additionally, the average revenue per TV user (ARPU) in the Public TV Licence Fees market market Japan is projected to amount to US$91.04 in 2024.
In Japan, public sentiment increasingly questions the relevance of traditional TV licence fees amid the rise of on-demand streaming services and changing viewing habits.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public TV Licence Fees market in Japan has been experiencing significant trends and developments in recent years.

Customer preferences: Japanese consumers have shown a strong preference for high-quality programming and a wide range of content options. They value access to news, educational programs, and entertainment that is both informative and entertaining. Additionally, there is a growing demand for online streaming services, which offer convenience and flexibility in accessing content.

Trends in the market: One notable trend in the Public TV Licence Fees market in Japan is the shift towards digital platforms. With the rise of online streaming services and the increasing popularity of smartphones and smart TVs, more consumers are turning to digital platforms for their entertainment needs. This has led to a decline in traditional television viewership and a corresponding decrease in the number of households paying TV licence fees. Another trend in the market is the increasing competition from international streaming services. Global platforms such as Netflix and Amazon Prime Video have gained popularity in Japan, offering a wide range of international and local content at competitive prices. This has put pressure on domestic broadcasters to improve their offerings and adapt to changing consumer preferences.

Local special circumstances: In Japan, the public broadcaster NHK is funded through a mandatory TV licence fee system. However, there has been a growing debate among the public and policymakers about the fairness and necessity of this system. Some argue that the fee should be abolished or reformed to better reflect the changing media landscape and consumer preferences.

Underlying macroeconomic factors: The development of the Public TV Licence Fees market in Japan is influenced by several macroeconomic factors. The country's aging population and stagnant economic growth have led to a decline in household income and consumer spending. As a result, consumers are becoming more price-conscious and are looking for cost-effective entertainment options. This has contributed to the growing popularity of online streaming services, which often offer lower subscription fees compared to traditional TV licence fees. Additionally, the COVID-19 pandemic has accelerated the shift towards digital platforms in Japan. With people spending more time at home, there has been an increased demand for online entertainment options. This has further fueled the growth of streaming services and challenged the traditional TV licence fee model. In conclusion, the Public TV Licence Fees market in Japan is experiencing significant trends and developments driven by changing consumer preferences, the rise of digital platforms, and the impact of macroeconomic factors. The shift towards online streaming services and the increasing competition from international players are reshaping the market landscape. The ongoing debate about the TV licence fee system and the impact of the COVID-19 pandemic are also influencing the market dynamics.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.