Core Insights - Japan's premium streaming sector experienced a 15% growth in 2025, reaching revenues of $7.2 billion, driven by ad-supported tiers, local content, and live events [1] - The sector added four million subscribers, totaling 67.3 million, with Prime Video leading in subscriber base at 19.3 million [3] Market Share and Competition - Netflix holds a 22% share of the premium video-on-demand market, while U-Next is the leading local player with a 12% share; together with Prime Video, they account for 50% of the market [2] - TVer emerged as the most-watched ad-supported streamer, capturing 23% of total viewing hours [3][4] Viewer Engagement and Content Performance - Netflix users average nearly 20 hours of engagement per month, with Japanese titles viewed for a cumulative 25 billion hours, making them the second most-watched non-English content globally [5][4] - Japanese drama is the top genre, reaching 73% of viewers and accounting for 37% of hours viewed, while anime reached 50% of viewers and accounted for 26% of hours [6] Strategic Developments - The entry of major players into live sports, such as Netflix's acquisition of rights to the 2026 World Baseball Classic, indicates a shift towards event-driven engagement [8][9] - U-Next is expanding its sports offerings by acquiring rights to women's golf majors and the English Premier League [8] Future Outlook - The premium VOD market in Japan is at a maturation point, focusing on sophisticated monetization strategies, including ad-tier yields and telco bundling [9] - The competition will increasingly rely on event-driven engagement and premium local storytelling, particularly in anime and drama [9]