The total pay-TV revenues in Japan are expected to grow at a slow but encouraging compound annual growth rate (CAGR) of 1.0% from US$9.1bn in 2019 to US$9.6 billion in 2024, driven by increasing cable and Internet protocol television (IPTV) subscriptions along with rising pay-TV average revenue per user (ARPU) levels, according to GlobalData, a leading data and analytics company.
GlobalData’s Japan Telecom Operators Country Intelligence Report predicts that cable will continue to be the leading technology to deliver pay-TV services in Japan, as cable subscriptions grow at a slow CAGR of 0.1% over 2019-2024. On the other hand, IPTV subscriptions will grow at a CAGR of 1.2% during 2019-2024, supported by growing optical fiber network coverage in the country.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “The pay-TV household penetration in Japan will decline marginally from an estimated 37.9% in 2019 to 37.5% by year-end 2024 due to growing demand for over-the-top (OTT) based video services in the country.
“KDDI will lead the pay-TV service segment in Japan over 2019-2024, supported by its leading position in the cable-TV segment and growing focus on IPTV segment. Moreover, the operator is focusing on providing cost effective multi play packages to retain its position in the market.”
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