Japanese streaming companies U-Next and Paravi to merge

Two of Japan's major video streaming services will merge, it was announced at the end from last week, creating the largest local business on the market.

Current number two U-Next will absorb Premium Platform Japan, a company that operates Paravi plate streaming -shape.

The combined company is estimated to have some 3.7 million subscribers and revenue in excess of 800 billion yen ($594 million) per year.

The integration of the two operations could begin as early as July, local media reported. This would allow U-Next subscribers to access Paravi content, much of which is re-broadcast by conventional television broadcasters. Premium Platform Japan is largely owned by TBS Holdings and TV Tokyo.

Paravi subscribers will, in turn, be able to access much of U-Next's content. < /p>

The move would allow the expanded business to remain competitive in a market dominated by Amazon and Netflix.

Subscription video streaming services in Japan had 48.4 million subscribers at the end of the first quarter of 2022, Amazon Prime Video (34% of premium video subscriptions) and Netflix (14%) account for almost half of the market.

"Acquired and largely non-exclusive cartoons remain a massive driver of demand for online video on all platforms, exceeding 50% of total measured demand [in Japan], with titles from 10 anime studios capturing 45% of anime demand. Live-action dramas are particularly important for platforms like Hulu Japan, which leverages content from parent company Nippon TV and others,” research firm Media Partners Asia said in May last year.

His report showed that Japanese anime accounted for 51% of consumption (i.e. say time spent watching) on ​​SVOD platforms, followed by Japanese live action content at 18%. American dramas accounted for 10%, while American movies and Korean dramas accounted for 7% each.

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