Market Insights Advertising & Media Esports

Media Rights - Japan

Japan

In Japan, revenue in the Media Rights market market is projected to reach €20.2m in 2024.
The revenue in this sector is expected to show an annual growth rate (CAGR 2024-2029) of 6.18%, leading to a projected market volume of €27.3m by 2029.
While Japan's figures are notable, it is important to highlight that most revenue is generated the United States, which has a projected market volume of €69.0m in 2024.
Japan's eSports media rights market is experiencing a surge, driven by increasing viewership and interest from major brands seeking strategic partnerships.

Key regions: United States, Sweden, Asia, Europe, Germany

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Analyst Opinion

The eSports market in Japan is experiencing mild growth, influenced by factors such as increasing media rights deals and growing popularity of eSports among Japanese consumers. The convenience of digital platforms and the rising awareness of the eSports industry are also driving this trend.

Customer preferences: In Japan, there has been a growing interest in eSports, particularly among younger generations. As a result, the media rights market within the eSports market has also seen a significant increase in demand. This can be attributed to the cultural inclination towards technology and gaming, as well as the rise of online streaming platforms. Additionally, with the current pandemic and restrictions on live events, there has been a shift towards consuming content from the comfort of one's home. This has led to a notable increase in online viewership and a rise in the value of media rights for eSports events.

Trends in the market: In Japan, the Media Rights Market within the eSports Market is experiencing a surge in demand for streaming services and online platforms. This trend is driven by the increasing popularity of eSports among younger audiences and the growing number of eSports tournaments and professional leagues. As a result, media companies are investing in partnerships and exclusive broadcasting rights for these events. This trajectory is significant as it allows for greater exposure and monetization opportunities for eSports, making it a more attractive market for investors. However, this could also lead to potential challenges for smaller players in the industry, as they may struggle to compete with larger, well-established media companies. Additionally, there may be implications for traditional sports media, as eSports could potentially become a major competitor for viewership and advertising dollars.

Local special circumstances: In Japan, the eSports market has been slow to take off due to cultural attitudes towards gaming and a lack of government support. However, with the popularity of traditional sports declining, there is a growing interest in eSports as an alternative form of entertainment. This has led to the emergence of unique partnerships between gaming companies and traditional media outlets, such as TV networks and newspapers, to broadcast tournaments and competitions. Additionally, the strict regulations surrounding gambling in Japan have also influenced the market, with a focus on maintaining the integrity of eSports competitions.

Underlying macroeconomic factors: The Media Rights Market within the eSports Market in Japan is heavily influenced by macroeconomic factors such as technological advancements, government policies, and overall economic health. The country's strong investment in digital infrastructure and favorable regulatory environment have been major drivers of growth in the market. Additionally, Japan's large and highly engaged gaming community, along with the increasing integration of eSports into mainstream media, have further boosted the demand for media rights. However, the market may be impacted by global economic trends and fluctuations, as well as any changes in Japan's fiscal policies. Overall, favorable macroeconomic conditions have contributed to the rapid growth of the Media Rights Market within the eSports Market in Japan, making it a key player in the global eSports industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Media Rights market, which comprises revenues from ownership rights of media agencies. These include payments to industry stakeholders to secure the rights to show Esports content on a channel, payments from streaming platforms (e.g., Twitch) to organizers to broadcast their content, payments from foreign broadcasters to secure the rights to show content in their region, or the copyright costs for showing video/image content of an Esports competition. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.