TOKYO - Japan’s streaming industry is under growing pressure as foreign giants tighten their grip on the domestic market, with Netflix’s latest move to secure exclusive broadcast rights in Japan for every game of the World Baseball Classic next March highlighting the widening gap.
The announcement sparked outrage among baseball fans since the tournament will not be aired on television, but the decision reflects a broader shift in the industry. The broadcast rights fee for this year’s WBC reportedly soared to 15 billion yen—five times higher than the previous tournament—making it increasingly difficult for domestic players to compete. Another key factor was the organizer’s decision to bypass traditional intermediaries such as Yomiuri Shimbun, which previously negotiated local broadcast deals, and instead strike a direct agreement with Netflix. Japanese broadcasters were slow to respond to this shift, effectively conceding exclusive streaming rights.
According to market data, Netflix holds the top spot in Japan’s subscription video-on-demand (SVOD) sector with a 21.5% share, followed by U-Next and Amazon Prime Video. Abema’s premium service remains a smaller player, included in the “other” category. Having marked its 10th anniversary in Japan last month, Netflix has maintained the No. 1 position for six consecutive years. Its success rests on three key strengths: original content, financial power, and personalized recommendations. By investing heavily in exclusive global hits such as “Squid Game,” Netflix differentiates itself from competitors. Its global scale, spanning 190 countries, enables it to generate revenue that funds high-quality content production, while advanced recommendation algorithms based on viewing history and user data help keep cancellation rates low.
Domestic platforms, many backed by television networks or telecom companies, benefit from stable content supply and strong promotional power but face structural disadvantages. Their content libraries often rely heavily on programming tied to their parent companies, limiting variety, and their focus on the Japanese market constrains global expansion. Nonetheless, U-Next has emerged as a standout performer. In 2022, it overtook Amazon Prime Video to become the second-largest platform, driven by a massive and diverse content library that appeals to users seeking the broadest range of titles. The company strengthened its domestic offerings in 2023 by integrating Paravi, a platform launched by TV Tokyo and TBS, adding more dramas, variety shows, and news programming. Increased visibility on terrestrial broadcasts has further boosted user acquisition, and U-Next is now investing in sports content such as “Soccer Pack,” which has proven popular among fans.
Financially, U-Next Holdings is delivering strong results. Net profit surged 20% year-on-year to a record 18.3 billion yen, while revenue jumped 20% to 390.4 billion yen, also a record for the company. Of that, content distribution accounted for about one-third, or 128.3 billion yen. As competition intensifies, Japanese services will need to leverage their domestic strengths while expanding their international presence and original content strategies if they hope to challenge the dominance of foreign streaming giants.
Source: テレ東BIZ
