IPTV gaining momentum in Japan

IPTV Getting Serious in Japan

IPTV is finally picking up pace, bolstered by a refocused NTT and others such as K-Opticom, as well as regulatory approval for HD terrestrial broadcasts over fiber broadband networks.

IPTV users numbered only 0.55 mil. at end-2008 but are likely to grow to 1.05 mil. by end-2009 and 1.6 mil. by end-2010, according to projections from Media Partners Asia (MPA), boosted by competitive bundling and discounted price structures from the likes of NTT.

Cable and satellite platforms owned by J:COM (4817.T) and Sky Perfect JSAT (9412.T) continue to dominate with ~70% market share in pay-TV, but subscriber growth over their cable and satellite networks is slowing at a significant pace. A recent monthly decline in subs at J:COM has served as a wake-up call for its management as it looks to re-ignite subscriber growth with new sales and content strategies. Sky Perfect JSAT is looking to HD expansion to boost subscriber growth.