Market Insight

Japanese video hardware decline continues in Q1 2015

June 03, 2015  | Subscribers Only

David Scott David Scott Associate Director – Research and Analysis, Service Providers & Platforms
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  • Video hardware shipments fell 22% in Q1 2015 compared with the previous year
  • BD hardware shipments fell 21% in Q1 2015; DVD down 26%
  • BD hardware accounted for 80% of total video hardware shipments

 

Japanese video hardware shipments fell 22% to 760,000 in first-quarter 2015, according to IHS analysis of data for January to March 2015 from the Japan Electronics and Information Technology Industries Association (JEITA).

The combined number of Blu-ray Disc (BD) players and/or recorders shipped in Japan fell 21% to 597,000 units in Q1 2015 compared with the corresponding period a year earlier. JEITA indicates the Japanese trade shipped 476,000 BD recorders, down 21% over the same period, whilst standalone BD player shipments fell 23% to 122,000 units. The results were slightly lower than expected, resulting in a minor downward adjustment to IHS’s year-end BD household forecast (down from 26.2 million to 25.9 million). Forecasts have also been adjusted accordingly. As a result, IHS now expects the number of combined BD player and recorder homes to increase from 23.5 million in 2014 to 25.9 million by the end of 2015 or 49.5% penetration of TV households.

Meanwhile, Japanese shipments of DVD players and/or recorders declined only slightly more steeply, down 26% to 163,000 units in the first quarter of 2015, compared with the previous year. This result was slightly better than anticipated and therefore IHS has revised its year-end 2015 DVD household forecast upward from 16.2 million to 16.4 million (31.3% penetration of TV households).

Our Analysis:

After two years of decline, Japanese BD hardware shipments returned to growth in 2014 on the back of falling player prices, particularly the price of standalone BD players. BD player and recorder shipments increased a modest 2.1% to just over 3.1 million units compared with the previous year. BD hardware accounted for just under 80% of total video hardware shipments in 2014. The adoption of BD hardware continues to depress Japanese DVD hardware shipments, which declined for the tenth consecutive year in 2014.

At the end of that year, BD hardware penetration in Japan was on a par with Australia and New Zealand, ahead of the US and behind Iceland, Hong Kong and Norway. Penetration of BD players and recorders in Japan reached 45.1% of TV households and 50.9% of HDTV households by the end of 2014 compared with 45.2% of TV households in Australia (54.0% of HDTV HHs), 44.9% in New Zealand (63.7% of HDTV HHs) and 33.3% (37.0% of HDTV HHs) in the US. Iceland, which has always been a strong market for home entertainment, boasts the highest rate of BD adoption in the world with 57.4% penetration of TV households (64.7% of HDTV HHs), however, the tiny size of the territory means that this represents just 70,000 households.

Meanwhile, Japan’s 24 million BD homes is the second largest installed base of BD hardware in the world. The US has the largest number of BD households (40 million) followed by Japan and Germany (10 million). IHS forecast Japanese BD homes to reach 30 million by the end of 2019.

 

Geography
Asia Pacific Japan
Research by Market
Media & Advertising
Category
Video
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