The Japanese streaming market is becoming more competitive with every passing day. In 2023, notable players, such as Netflix, Prime Video, Disney+, and local players accumulated over 100 billion viewing minutes in the “premium VOD” market, generating a humungous $4.5 billion in terms of subscription revenue.
According to a recent study conducted by Media Partners Asia’s data analytics firm, Ampd, Prime Video emerged as the market leader in the SVOD category, with over 19.7 million monthly active users (MAUs). Local streaming platform U-Next ranked second with 8.2 million MAUs, followed by Netflix with nearly 7.5 million MAUs.
Prime Video also leads the chart with the highest number of subscribers in Japan, with 18.6 million subscribers, followed by Netflix (8.1 million), U-Next (4.2 million), and Disney+ (3.8 million). However, the situation reverses when it comes to engagement, with Tver and Netflix leading with an average of 8.8 and 7.3 hours/user every quarter.
Amazon launched Prime Video in Japan in 2015. Since then, it has established itself as one of the leading and most prominent streaming platforms in the country. According to an online survey by Statista in May 2023, almost two-thirds of Japanese respondents preferred Prime Video as their favourite paid video streaming service. On the flip side, Netflix received the favour of only 22% of the respondents.
Many factors have contributed to the growth and success of Prime Video in Japan. Among them, the most important should be Anime Times, an add-on service treasuring globally popular anime projects for die-hard anime lovers. The service is Prime Video’s first dedicated anime channel, consisting of popular anime titles, such as HUNTER X HUNTER, SPY X FAMILY, Fairy Tale, Tokyo Revengers, Goblin Slayer, Zombieland Saga, That Time I Got Reincarnated As A Slime, and more. Anime Times entered Japan in 2021. This platform has significantly aided Prime Video in attracting a large number of Japanese subscribers.
In December 2023, Anime Times also arrived in India. The region’s viewers can buy it on Prime Video as an add-on service, with a subscription charge of Rs. 899 per year.
Another factor that has made Prime Video more popular than Netflix in Japan is the former’s low subscription prices. Prime Video starts offering its services at ¥600/month ($4/month in US dollars). Whereas, Netflix’s basic plan commences with $9.99/month. In addition, Prime Video’s popularity has reached new levels in Japan in recent years. In August 2023, Statista revealed that Prime Video was the country’s most popular Amazon Prime benefit, with a noticeable approval rating of 83.84%.
It is not like Netflix has not done anything to strengthen its presence in Japan. In March 2023, the streaming giant announced spending nearly $1.9 billion to develop more localised content in order to improve focus on the Asia-Pacific region. Japan is considered Asia’s second-largest economy. In addition, the region is home to over 52 million SVOD subscribers, disclosed by Ampd. The growth of physical media has paved the way for the development of the SVOD market in Japan. Yes, Prime Video currently leads the Japanese market. However, Netflix’s growing presence and focus on localised content may pose a serious threat to Prime Video’s dominance in Japan in the upcoming years. Stay tuned for more updates.