Last updated: 2 Jun 2015 Update History
Report Status: Archived
Report Pages: 12
Analyst: Paul Kwon
Recognising the potential of applying ICT to improve both social and economic development, Japan has taken steps to develop a digital economy. Businesses, governments and private citizens have been instrumental in creating the online content and services that make up the digital economy.
Japan possesses a large and vibrant television industry due to its unique culture and market size. Japanese television stations are vertically integrated as they engage in program planning, production, scheduling and broadcasting. To maximise revenue generation from created content Japanese broadcasters work aggressively to monetize content through various methods including converting popular programming into movies for the big screen, DVD and related merchandising, holding events, distributing content through the Internet and selling program formats to overseas stations. However revenue in Japan’s TV market is primarily derived from advertising.
Japan also possesses a vibrant multichannel pay TV industry with services readily accessible across Japan via cable TV (CATV), satellite, IPTV and Over-the-top (OTT) Video-on-Demand (VoD). Total pay TV subscriptions are steadily growing with penetration household penetration levels lower than that of the UK or USA, indicating room for potential growth.
What is interesting to note is that although Japan has the necessary physical infrastructure to support OTT VoD, pure OTT players have not found much success as Japanese broadcasters, as the largest Japanese content producers, have traditionally been reluctant to release content to the OTT players believing it will cannibalize advertising revenue.
Paul, Many thanks for your inputs yesterday. You provided a compelling different perspective to our traditional infrastructure focus and this is valuable for our future planning. I also had very favourable feedback from our participants on your involvement.
Stephen Negus, Aurecon
BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.
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