Summary of Research Findings

The general structure of the video streaming service market is as follows: The video streaming service providers acquire licenses of digital contents from the contents providers to disclose and sell them to the users who pay for the content viewing fees. A part of the viewing fees is paid back to a content provider as a royalty for the content according to the number purchased or replayed. In some cases, royalties for the contents are paid in conformity to the agreement between the content provider and video streaming service provider, regardless of the number of contents purchased or replayed.

In recent years, increasing number of video streaming service providers have started producing their own contents aiming to reduce royalties to pay for, and to differentiate from other providers by exclusively streaming their own original contents, which are the key to attract viewers. In addition, as the content production costs are rising, those businesses with sufficient funds to produce their own contents are increasing their users.

Noteworthy Topics

New Users of Video Streaming Services Increased through Popular Content (Program)

The video streaming market expanded significantly in 2019, driven by “The Naked Director,” which is a Japanese web television series, produced by and premiered on Netflix which attracted new users who had never used the video streaming services before.

The market in 2019 was in expanding period, with each video streaming service provider increased its paid users. While there have been no obvious competition, the video streaming business has begun ruled by a few major service providers, which has led for major video streaming service providers to contend for users in 2020

Research Outline