Watcha officially launches service in Japan... First step towards global expansion

[Asia Economy Reporter Kim Heung-soon] Online video service (OTT) Watcha is taking its first step into overseas markets by officially launching its service in Japan.

Watcha announced on the 16th that it has officially launched its service nationwide in Japan. This marks its first overseas expansion in four years since its initial launch in Korea in 2016. Similar to its domestic model, it operates as a subscription-based SVOD service with monthly subscription fees set at Basic 790 yen and Premium 1200 yen (excluding consumption tax).

Watcha’s core user base consists of movie enthusiasts who want to consume content tailored to diverse tastes. In 2015, Watcha launched its content recommendation and rating service 'WatchaPedia' in Japan, and within five years, it has accumulated 28 million rating data points solely in Japan.

Prior to the official launch in Japan, a closed beta test (CBT) was conducted for three weeks from the 3rd to the 23rd of last month. Although only 500 participants were recruited for the beta test, over 3,000 applicants applied, and approximately 45,000 people pre-registered. According to Watcha, 92.3% of users who participated in the closed beta test responded that they were satisfied after watching works they discovered for the first time through Watcha, and 80.5% evaluated Watcha’s predicted ratings as accurate.

Currently, the Japanese OTT market is rapidly growing with fierce competition among global players such as Netflix, Amazon Prime Video, Hulu, U-NEXT, D-TV, and local platforms. Japanese market research firm Gem Partners forecasts that the Japanese OTT market will grow at an average annual rate of 10.3% from 2019 to 2024, expanding from 215.8 billion yen to 438.9 billion yen in five years.

Park Tae-hoon, CEO of Watcha, said, "It is meaningful that Watcha, once doubted as a startup that would not survive in the OTT market, has challenged overseas expansion earlier than any other OTT." He added, "The launch of the service in Japan is the first step for Watcha to leap into a global OTT platform, and we will implement a differentiated global strategy from existing companies."