Advertising Revenue Soars 150% Production Companies Face an Existential Crisis Amid the TVer Boom

Talent who can earn views

“Rather than a ‘TVer boom,’ we’ve fallen into a ‘TVer hell’.”

While TV viewership for terrestrial broadcasts continues to decline, the on-demand service TVer has seen advertising revenue surge by approximately 150% year-on-year, creating a boom.

You might think this would be benefiting those on the ground, but a producer from a mid-sized production company sighs, saying:

“Sure, there’s been an increase in work like editing and delivering content for TVer. But it’s just more work, with no additional benefits. We, the production companies, aren’t receiving a penny more in production costs. The only ones benefiting are the networks. This isn’t a boom—it’s TVer hell.”

How can there be more work but no income? The producer, with a grim expression, explains:

“Production costs have been heavily reduced, so the number of talents we can cast for a show has dropped. We can’t afford to cast just anyone for a trial; we have to focus on ‘selection and concentration’ to win. Specifically, it comes down to young female talents like Yuchami (23) who are good at reacting, mom talents like Miki Fujimoto (39) who are popular with viewers, and ‘veteran commentators’ like Tomio Umezawa (73). In other words, as long as we have these three types, a show can work. But now, due to the TVer boom, we’re being asked to cast talents who can generate high view counts on TVer. Their casting fees eat into the production budget, leaving little room for profit.”

By the way, who are the talents who can generate views on TVer? According to a mid-level TV writer, “It’s those who have passionate fan support.”

“Top idols like ‘Snow Man’ and ‘Nogizaka46,’ and influencers like Shinako (28) who are supported by Gen Z fans. They are highly valued. This is especially evident in dramas. Whether or not former Johnny’s talents, like those from STARTO ENTERTAINMENT, appear in a drama can make a huge difference in the number of TVer favorites and likes.”

A director who works part-time

Among them, production companies specializing in variety shows are said to be in a particularly difficult position. In the current era of compliance regulations, it has become impossible to produce bold or edgy content, leading to a decline in viewership. Few people are willing to watch variety shows on catch-up services, and variety shows are struggling on TVer as well. Broadcast slots are rapidly being taken over by dramas and anime.

The previously mentioned producer sighs,

“In the Heisei era, variety show directors were the stars of the TV industry. Now, many of them are barely active. We sometimes get calls from production companies asking if we have any work available. As much as we’d like to help, we’re struggling with a lack of work ourselves…

We even have directors who work part-time as supermarket employees during the day and security guards at night, waiting for work offers to come in. As for me, three of my programs ended this fall. I only have two programs left. If those end too, we’ll have no choice but to consider shutting down the company.”

While the major networks are basking in the “TVer boom” this autumn, subcontracted TV workers are bracing themselves for a harsh winter.