This post is part of the series about Japan that I have been writing in 2019. You can find other posts here:
Key facts about Japan Digital Landscape (updated Jan 2019)
8 key facts about Japan Mobile Game Industry (update Mar 2019)
1. Subscription Video on Demand (SVOD) penetration in Japan is at 13% per capita, lower than that of China, South Korea, Australia
The graph below is from Asia Video Industry Report 2019 from AVIA
![japan svod ott penetration per capita 2018 vs china hong kong south korea australia](https://www.chandlernguyen.com/wp-content/uploads/2019/02/japan-svod-ott-penetration-per-capita-2018-vs-china-hong-kong-south-korea-australia.png)
Perhaps it will be less surprising when we learn that Japan Pay TV penetration is also amongst the lowest in Asia Pacific according to the same report.
![pay tv penetration in japan australia china south korea and other apac markets 2018](https://www.chandlernguyen.com/wp-content/uploads/2019/02/pay-tv-penetration-in-japan-australia-china-south-korea-and-other-apac-markets-2018.png)
2. The SVOD industry is expected to grow at around 12% in 2019 but growth is forecasted to decelerate quickly
![Subscription OTT Video Viewers and growth rate japan 2018 2022](https://www.chandlernguyen.com/wp-content/uploads/2019/02/Subscription-OTT-Video-Viewers-and-growth-rate-japan-2018-2022.png)
3. OTT subscription revenue is expected to remain at relatively low level (10%) versus multi channel revenue while China is at 100% in 5 years
Data from S & P Global market intelligence and AVIA in the same above report.
![](https://www.chandlernguyen.com/wp-content/uploads/2019/02/ott-revenue-as-a-percentage-of-multi-channel-revenue-japan-2017-2022.png)
This is because average revenue per user (ARPU) for SVOD in Japan is significantly lower than multi channel service ARPU
![ott arpu in japan versus multi channe arpu 2017 2022](https://www.chandlernguyen.com/wp-content/uploads/2019/02/ott-arpu-in-japan-versus-multi-channe-arpu-2017-2022.png)
4. Commercial terrestrial TV, YouTube, NHK, BS Broadcasting are the top TV/Video content services used by internet users in Japan
![top tv video content services used by internet uers in japan 2018](https://www.chandlernguyen.com/wp-content/uploads/2019/02/top-tvvideo-content-services-used-by-internet-uers-in-japan-2018.jpg)
5. Amongst VOD app users, 80% are non subscribers
![subscription vs non subscription vod app users in japan 2018](https://www.chandlernguyen.com/wp-content/uploads/2019/02/subscription-vs-non-subscription-vod-app-users-in-japan-2018.jpg)
6. Amazon Prime Video is the leading SVOD service in Japan
![](https://www.chandlernguyen.com/wp-content/uploads/2019/02/top-15-svod-in-japan-dec-2018-573x1024.jpg)
7. Japanese internet users spend less time per day viewing VOD versus users in other mature economies
![time spent per day viewing video on demand in japan us uk france germany italy 2018](https://www.chandlernguyen.com/wp-content/uploads/2019/02/time-spent-per-day-viewing-video-on-demand-in-japan-us-uk-france-germany-italy-2018.jpg)
8. The percentage of online video streamers for sport content in Japan is slightly better than market average. However, given the country old population pyramid, the industry faces strong headwind
![percentage of digital video viewer who stream sports in japan by age group 2018](https://www.chandlernguyen.com/wp-content/uploads/2019/02/percentage-of-digital-video-viewer-who-stream-sports-in-japan-by-age-group-2018.jpg)
Thanks,
Chandler