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Japan Broadcasting Industry

U.S. technology companies have a clear opportunity to provide Artificial Intelligence (AI), automation, monetization tools, and cross-platform solutions that support Japan’s broadcasting industry as it adapts to new demands and digital consumption trends. These innovations can help Japanese companies manage labor challenges, expand their reach, and remain competitive in a rapidly changing media landscape.

Japanese Broadcasting Industry Market Trends
According to statistics from Japan’s Ministry of Internal Affairs and Communication (MIC) released in June 2024, the broadcasting industry’s market sales* totaled approximately US$25.8 billion in 2022, marking a slight decrease of 0.8% from 2021. This decline contrasts with 2021, which saw the industry’s first growth in three years, with total sales reaching approximately US$26.0 billion. This growth was largely driven by the COVID-19 pandemic, which led to increased time spent at home, resulting in a surge in TV viewership. At the same time, there was a rapid rise in the use of online streaming services. As a result, TV sets have evolved from solely broadcasting traditional programming to becoming versatile devices that access a wide range of content, including internet videos. Additionally, the distribution of media content through online services, rather than traditional TV broadcasting, is rapidly gaining momentum. 
(*market sales = NHK’s (Japan’s national broadcaster) subscription revenue + advertising revenue and/or fee-based broadcasting revenue of commercial broadcasters).

Persistence of Demand Despite a Market Shift
Despite the overall decline in Japanese broadcasting market sales, demand is expected to persist. The industry is adapting by developing systems and monetization methods that make it easier to watch TV programs without traditional televisions. Japan’s aging population is also a key factor in sustaining demand for the broadcasting industry.  Many elderly individuals, who may struggle to use the internet and/or smartphones, continue to rely on traditional TV programming. Additionally, TV stations benefit from a “broadcasting license” issued by the MIC, which creates a barrier to entry for new competitors, as it is highly regulated and concentrated with existing broadcasters. Meanwhile, the landscape for video streaming services remains highly competitive, rapidly developing with new trends, technologies, competitors, and consumer demands.

Opportunities for Innovation in Content Production
Conversely, the production sector is experiencing strong demand that extends far beyond traditional television programming. This demand includes content for platforms like Netflix and YouTube, as well as video and social media advertisements displayed in public spaces or on smartphones. According to statistics from Slack Technologies released in March 2024, 67% of Japanese desk workers believe that AI and other automated tools could improve efficiency and productivity, yet only 18% have experience using them. Given Japan’s worsening labor shortage, labor-intensive content production sites could benefit significantly from AI-driven and other high-tech solutions. U.S. innovations can help alleviate labor shortages, freeing up time for tasks that require human involvement. Although a major commercialization surge is expected once issues surrounding the use of Generative AI are resolved, there are immediate opportunities for U.S. companies to introduce AI-equipped and other automated products to boost efficiency and ease the burden on production sites.

If you are interested in more information on broadcasting related industry in Japan, please contact U.S. Commercial Service at the U.S. Embassy Tokyo and the U.S. Consulate Osaka-Kobe at office.tokyo@trade.gov.
 

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