Japan‘s premium video-on-demand sector achieved $7.2 billion in total revenue during 2025, marking a 15% year-over-year increase, according to a new report from Media Partners Asia. The growth reflects platforms’ increasing reliance on diversified revenue models, including ad-supported subscription options, alongside greater investment in domestic programming and live sports rights.
Three services control half the market’s total revenue. Netflix holds the top revenue position with 22% of the category, while Prime Video leads in subscriber count with 19.3 million users, benefiting from cross-promotion within its broader retail and e-commerce operations. Local service U-Next commands 12% of revenue through an integrated content package that combines streaming video with manga, music and exclusive sports programming, creating competitive advantages against international rivals.
Subscription video platforms collectively gained 4 million subscribers during 2025, pushing the total to 67.9 million when including YouTube Premium. Netflix drove the largest gains, powered by its partnership renewal with telecom major KDDI in November 2025 and strong performance from Japanese originals. Sports streamer DAZN also contributed meaningfully through its bundled inclusion in telecom player NTT Docomo’s ahamo Max mobile service, while the Disney+/Hulu Japan combined package expanded its reach.
Total viewing across premium VOD reached 8.1 billion hours in 2025. Broadcaster-backed free streaming service TVer captured the highest share of total watch time at 23%, though Netflix achieved superior per-subscriber engagement, with users averaging close to 20 hours monthly on the service.
Local productions continue to anchor viewer interest, accounting for 80% of all streaming hours. Animation proved particularly powerful, with “Spy x Family” ranking as the most-watched title in Q4 2025. Japanese live-action series and variety formats dominated TVer’s AVOD programming, while Netflix delivered “Last Samurai Standing” and Amazon contributed “The Golden Combi” and “Love Transit” as notable original productions. American content still reached a significant audience, with 28% of users watching U.S. series and films such as “Wicked,” “A Minecraft Movie” and Netflix’s “Stranger Things.”
Major platforms are now prioritizing live event programming. Netflix will enter the sports streaming arena by securing exclusive rights to the 2026 World Baseball Classic, TVer plans to carry selected competitions from the 2026 Winter Olympics, and U-Next is expanding its sports portfolio with upcoming coverage of women’s golf majors and English Premier League soccer through 2028.
“Japan’s premium VOD market has reached a critical maturation point,” said Dhivya T, lead analyst and head of insights at MPA. “Growth is no longer just about net adds, but sophisticated monetization through ad-tier yields, telco bundling, and vertically integrated ecosystems. The entry of major players like Netflix into live sports and the continued dominance of local anime and drama suggest that the next phase of competition will hinge on event-driven engagement and premium local storytelling.”
The data comes from MPA’s Japan Online Video Consumer Insights & Analytics report, produced using AMPD, the company’s measurement platform that tracks viewing behavior across mobile devices and connected television.
Source: variety.com
