Media streaming services – that is, the distribution of digital content such as videos, music, games, audiobooks and e-books – are becoming increasingly popular in Japan. If you want to watch a movie or TV show, you no longer need to go to a rental shop as you did before. Nowadays, you can watch anytime, anywhere using a wide range of streaming services. One strength of online platforms is that customers could access both domestic and Japanese titles and international programming unavailable on local stations.

Digital content distribution has become deeply ingrained in our daily lives. A unique feature of these platforms is that online payments are the standard form of purchase. In this article, we'll explain the methods used by Japanese streaming providers by providing examples of billing systems and distribution services.

What's in this article?

• What is digital content?
  
• Payment methods for digital content distributors
  
• Billing systems for digital content distributors
  
• Examples of digital content distributors
  
• How to make digital content distribution more convenient
  
• How Stripe Billing can help
  

What is digital content?

Digital content refers to any material created from electronic data. Platforms that deliver media over the internet are often called streaming services.

Unlike Blu-ray discs and DVDs, which people hold physically, digital material consists of electronic data enjoyed on devices such as televisions, computers and smartphones.

There are various types of online media, including:

• E-books, magazines, newspapers and audiobooks
  
• Music
  
• Games, such as virtual reality, apps and gaming platforms
  
• Videos, such as movies, TV shows and social media videos
  

Most platforms offering digital media let users watch freely with a fixed monthly subscription, while others provide options to download items individually. When downloads are available, services typically offer one of two options: either the customer has to pay for each additional one or they can download content at no extra cost.

Take video games, for instance: depending on the service and the title itself, players might not get them for free and will need to purchase them to play. In this case, they would first buy the game from the service's online shop, then download it and play. Other digital content distributors, such as e-book and movie platforms, also offer the option to purchase each piece individually. Alternatively, customers can pay for a subscription, which allows them on-demand access without any further charges as long as they cover a monthly fee.

Payment methods for digital content distributors

Credit cards

According to a Ministry of Internal Affairs and Communications report, credit card payments are the most popular way to purchase goods online. Cards are also a common way to buy online media. Many users opt for credit cards because they're straightforward and convenient.

Konbini payment and prepaid cards

Konbini (convenience store) payment allows people to settle purchases at nearby convenience stores 24 hours a day, even without a credit card. Konbini payment is a common option for buying concert tickets, museum advance tickets and products on e-commerce shopping centres.

To pay at a convenience store for digital content, customers can buy platform-specific prepaid cards or gift cards at the shop to complete the checkout.

With the prepaid type, there is no automatic contract renewal, so users avoid unnecessary expenses by not extending the contract unnecessarily. Settling at a convenience store on the spot simplifies budgeting.

Carrier payments

Carrier payments, offered by major cellphone service providers, is another way to check out with cards. This option allows customers to bundle charges with their monthly phone bill. It suits anyone who prefers not to handle one-off purchases.

Billing systems for digital content distributors

There are two types of charging models used in digital content distribution: automatic billing and one-touch billing.

Automatic billing applies a fixed monthly usage fee, such as a subscription. On the other hand, pay-per-use refers to purchasing media including games and e-books on an as-needed basis. One-touch billing widely supports pay-per-use.

Automatic billing

Automatic billing lets users pick the service or plan and then apply charges on a specific date or at a particular time.

With automatic billing, members skip the checkout process each payment cycle, saving time and preventing missed bills. This model is mainly used for subscriptions, as it applies a fixed fee at regular intervals.

One-touch billing

One-touch billing stores card details from the first purchase for future orders. This enables subsequent purchases with a single click, reducing download time and making the process highly convenient for pay-per-use. As a result, it has become an indispensable method for many businesses that offer their products as digital content.

Examples of digital content distributors

Let's look at a few examples of digital content distribution systems:

U-NEXT

U-NEXT is a subscription service that allows members to view a wide array of digital content such as movies, dramas and anime. They can use U-NEXT to view as much as they want, for a monthly fee. It is free for 31 days for first-time registrants. Subscribers get a lineup of music, live performances, theatre, sports and news. In addition to video titles, the platform also offers unlimited access to magazines and a free manga service.

U-NEXT's payment methods include credit cards, carrier billing and prepaid U-NEXT cards available at convenience stores. Checkout through Rakuten Pay, Amazon, Apple Pay and Google Pay is also accepted.

d-anime Store

d-anime Store is a popular subscription streaming service offered by NTT Docomo that specialises in anime, but customers do not need a mobile phone contract with Docomo to join. d-anime Store supports credit card and carrier payments. However, carrier billing is limited to Docomo mobile subscribers.

Additionally, d-anime Store offers content rental and sells physical anime merchandise. Members of d POINT CLUB (a rewards program offered by Docomo) can use their d POINTs to get discounts on rentals and purchases.

NHK On Demand

As the name suggests, NHK On Demand is a streaming platform for NHK programs. Along with historical dramas, viewers can also watch a diverse assortment of offerings, including past shows, the latest episodes, anime, variety shows, documentaries and educational programmes. Although there is no free trial period or download function, it offers a wide range of quintessential NHK content, such as original coverage on current affairs as well as political and economic issues. It is particularly popular among those who are familiar with NHK. Checkout options include credit cards, carrier payments (only d-Payment and au Kantan Kessai) and Yahoo! Wallet.

How to make digital content distribution more convenient

Digital content distributors could offer automatic or pay-per-use billing. Automatic billing works for subscription services where members cover a fixed fee for continued, regular access. In contrast, pay-per-use enables customers to download content such as e-books and music. In either case, convenient and speedy payment methods are key for streaming platforms. Therefore, it is important for businesses that deliver digital content to consider ease of checkout, integrating options that are appropriate for their offerings.

If you're looking to integrate multiple checkout options, a payment agent can handle contract negotiations on your behalf. Some offer a broad range of support, including purchasing trend analysis, sales management tools and the specialised knowledge necessary for running the service, making them a more reliable choice.

How Stripe Billing can help

Stripe Billing lets you bill and manage customers however you want – from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes – no code required – or build a custom integration using the API.

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage and more. Support for coupons, free trials, prorations and add-ons is built-in.
  
• Expand globally: Increase conversion by offering customers' preferred payment methods. Stripe supports 100+ local payment methods and 130+ currencies.
  
• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over £6.5 billion in revenue in 2024.
  
• Boost efficiency: Use Stripe's modular tax, revenue reporting and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.
  

Learn more about Stripe Billing or get started today.