Japan’s Streaming Sector Revenue Reaches $7.2 Billion in 2025 with Netflix at the Forefront

The premium streaming industry in Japan saw substantial growth in 2025, bringing in an impressive $7.2 billion in revenue. This increase can be attributed to various factors such as the introduction of ad-supported tiers, a rise in local content, and a surge in live events and sports offerings. The latest Japan Online Video Consumer Insights & Analytics report, released by Media Partners Asia (MPA) and its proprietary measurement platform AMPD, shed light on these developments.

At the forefront of this revenue surge is Netflix, capturing a remarkable 22% share of the premium video-on-demand market. U-Next, a local player, closely follows with a 12% share. Together, Netflix, Prime Video, and U-Next account for half of the market. The overall subscriber base in Japan increased by four million in 2025, reaching a total of 67.3 million. Prime Video boasts the largest number of subscribers with 19.3 million and leads the way in terms of hours watched. Interestingly, ad-supported streamer TVer emerged as the most-watched platform, commanding 23% of the 8.1 billion hours watched.

In terms of viewer engagement, Netflix stands out, with the average viewer spending close to 20 hours on the platform. In fact, Netflix co-CEO Greg Peters revealed that Japanese titles on the platform have amassed a staggering 25 billion hours of view time, making them the second most-watched form of non-English content globally.

When it comes to genres, Japanese drama takes the lead, capturing the attention of 73% of viewers and accounting for 37% of hours viewed. Anime, a genre with global popularity, also plays a significant role, with local series like Spy x Family being a top-streamed title in Q4 2025. TVer’s viewership is largely driven by live-action series and variety shows, while Netflix’s original series Last Samurai Standing and Prime Video’s Love Transit were also cited as viewer favorites.

International series and films continue to be popular in Japan, with titles like Wicked, A Minecraft Movie, and Stranger Things enjoying significant viewership. The market is anticipating a surge in “high-impact event viewing,” thanks to exclusive deals with platforms like Netflix for the 2026 World Baseball Classic and TVer’s Winter Olympics coverage. U-Next is also making strides in the sports arena by acquiring rights to women’s golf majors and the English Premier League.

In conclusion, the Japanese premium VOD market has reached a critical stage of maturity, focusing on advanced monetization strategies through ad-tier yields, telco bundling, and integrated ecosystems. With major players like Netflix venturing into live sports and the enduring appeal of local anime and drama, competition in the market is set to pivot towards event-driven engagement and premium storytelling.