The total multiplay service revenue in Japan is set to increase at a compound annual growth rate (CAGR) of 3.3% from $29.6 billion in 2023 to $34.9 billion in 2028, driven by the rising demand for blended services and growing number of multi-play households in the country, according to GlobalData, a leading data and analytics company.
GlobalData’s Japan Multiplay Forecast (Q1 2024) reveals that the average monthly household spend on multiplay service bundles will increase from $53.3 in 2023 to $55.7 in 2028, primarily driven by the increasing adoption of doubleplay and tripleplay service bundles built on fiber optic (FTTH/B) broadband services, and plans with premium benefits such as gigabit speeds, and unlimited access to music platforms.
Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Doubleplay services will remain the most popular multiplay service category through the forecast period but its share in the total multiplay households will decrease from 76.7% in 2023 to 72.7% in 2028. Tripleplay and quadplay services, on the other hand, will see their share in the total multiplay-households to grow from 19.8% and 3.5% in 2023 to 22.7% and 4.6%, respectively, in 2028.”
The adoption of multiplay packages in Japan will be boosted by the growing broadband network coverage in the country, especially the increasing availability of high-speed fiber-optic broadband services.
Vaidya concludes: “KDDI will lead the doubleplay and quadplay markets, by subscription share, through the forecast period driven by the rising adoption of multiplay bundled services. For instance, KDDI is offering doubleplay services at discounted price of JPY5,610 ($37.4)/month down from JPY6,160 ($41.1)/month. NTT, on the other hand, will continue to lead the triple-play segment in terms of households through 2028.”