Paramount Global ( PARA Quick Quote PARA - Free Report) plans to introduce the premium streaming platform Paramount+ in Japan with J:COM, a leading cable TV operator and broadband Internet provider in Japan, and WOWOW Inc., the top premium pay channel in the market. Japan marks the second Asia market for Paramount+ following its successful launch in Korea last year. Starting from Dec 1, Paramount+ will offer its well-liked movies and TV series to the audience in Japan via the on-demand platforms of J:COM and WOWOW. Importantly, there will be no extra charges for subscribers of these services. Paramount+ will offer a diverse lineup, drawing from PARA's extensive catalog. This will encompass blockbuster movies like Mission: Impossible, Bumblebee and G.I. Joe from Paramount Pictures and well-received CBS TV series like CSI: Crime Scene Investigation and NCIS. The company’s other lineups also include beloved animated shows like Nickelodeon's SpongeBob SquarePants and Comedy Central's South Park, popular showtime programs like DEXTER and RAY DONOVAN and MTV's youth-oriented series and renowned music shows, including the MTV Video Music Awards Japan. Shares of Paramount, which currently has a Zacks Rank #5 (Strong Sell), have lost 19.4% year to date against the Zacks Consumer Discretionary sector’s rise of 8.1% due to huge expansion and content cost. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Paramount Enters Competitive Streaming Space in Japan
The pandemic brought about a tenfold increase in Japan's video streaming market. During this time, there was a substantial surge in the online streaming market. Consequently, more content, including music videos, TV shows and movies, was consumed online. Approximately 56% of Japanese consumers aged 16 to 64 years cited this as a primary reason for their Internet usage, according to GWI
report. Service providers are actively tailoring and broadening their content libraries because the key focus lies in local content, as both anime and live-action dramas are pivotal in attracting new Japanese subscribers due to which there is high demand for local streaming services also. As of May 2022, Japan had more than 48 million subscribers to various video streaming platforms. Nearly half of the market share was dominated by Netflix ( NFLX Quick Quote NFLX - Free Report) and Amazon ( AMZN Quick Quote AMZN - Free Report) Prime Video. These U.S.-based services entered the Japan market in 2015, followed by Disney ( DIS Quick Quote DIS - Free Report) in 2019. Netflix's success in entering the Japanese market was significantly reliant on forging local collaborations with anime studios, filmmakers and influential figures. The creation of homegrown original content like Terrace House and Tidying Up with Marie Kondo, along with the streaming of licensed anime series, played pivotal roles in its achievement. Amazon, one of the highly favored streaming services in Japan, initially established its presence in the Japanese market back in 2000 as an e-commerce platform. As it gained an ever-growing user base, it contributed significantly to raising awareness about Prime Video. This approach played a pivotal role in acquiring new customers, especially considering that Amazon entered into the Japanese streaming market after Netflix. Disney's streaming platform made its debut in Japan in 2020 and has swiftly gained popularity in the country. This rapid success can be attributed to promotional discounts, tailored content for children and the availability of exclusive franchises. Disney is also planning to increase its production of region-specific content in the coming times. U-Next, the leading local service provider in Japan, has merged with the operator of the Paravi video-streaming platform, which is renowned for its collection of Japanese TV drama series. This move aims to enhance its services and compete with international giants. Paramount+ is experiencing rapid growth as a premium streaming service, boasting more than 61 million subscribers across 45 global markets. These expansions are expected to aid subscriber growth although it faces stiff competition in the saturated streaming market. The Zacks Consensus Estimate for 2023 subscribers is pegged at 68.85 million, indicating year-over-year growth of 23.1%. The Zacks Consensus Estimate for revenues is pegged at $30.54 billion, indicating year-over-year growth of 1.28%.