2019–2021: Strategic shifts and pandemic growth
However, the heavy financial toll of the platform became apparent in early 2019. In January, CyberAgent issued its first downward earnings revision in 17 years due to a slowdown in its core advertising and gaming businesses, which had been subsidizing AbemaTV's deficits. This prompted Fujita to announce a comprehensive cost review while maintaining the 20 billion yen investment.[21][22]
To improve profitability, the company began shifting its strategic focus from purely advertising-driven free broadcasts to increasing subscription revenue. In January 2019, CyberAgent disclosed that Abema Premium had 358,000 subscribers, a 4.5-fold increase from the previous year, and that the AbemaTV app had been downloaded 37 million times.[23] Because the sports streaming service DAZN held the exclusive broadcasting rights for the J League, CyberAgent formed a partnership with DAZN in February 2019. This agreement allowed AbemaTV to live stream all of Machida Zelvia's home matches and broadcast highlight programs for the league.[24] By April 2019, premium subscribers reached approximately 400,000, and the company stated its goal to balance the platform's advertising and subscription revenue ratio to 50:50. Fujita noted that while the initial goal was to create an internet-based linear TV service, most pre-recorded content had shifted to on-demand viewing, leaving news and sports as the primary linear broadcasts. He also stated that 95% of the platform's drama viewership was on-demand, prompting a shift toward a hybrid linear and on-demand model.[25][26]
On February 25, 2019, AbemaTV began a trial service for viewers outside Japan, allowing access from the United States, Australia, Thailand, Canada, the United Kingdom, and Brazil using the iOS/Android app.[27][28]
In March 2019, Abema announced a partnership with Dwango for content distribution. Through this collaboration, from April 1, selected AbemaTV programs became available for streaming on Niconico, the video-sharing platform operated by Dwango.[29]
In mid-2019, the platform finally surpassed its long-term target of 10 million WAU multiple times. By October 2019, the app had reached 45 million cumulative downloads.[30]
In January 2020, CyberAgent announced its Q1 earnings for the 2020 fiscal year (October to December 2019), stating that the media division was boosted by AbemaTV, with a revenue increase of 6.9% to 12.2 billion yen, although there was an operating loss of 5 billion yen. The number of paid members for Abema Premium increased to 593,000.[31] In the same month, CyberAgent acquired Pro-Wrestling Noah.[32] To streamline its growing combat sports portfolio, CyberAgent merged the promotion with DDT Pro-Wrestling in July 2020 to form a new consolidated subsidiary, CyberFight.[33]
As of March 4, 2020, AbemaTV reached 50 million cumulative downloads on its smartphone app.[34] Driven by the COVID-19 pandemic and high demand for live, uncut broadcasts of news conferences, the number of weekly active users reached a record high of over 14.9 million in early April 2020.[35]
In April 2020, AbemaTV changed its name to Abema, reflecting the diversification of its services beyond linear streaming to on-demand streaming and other offerings.[36]Concurrently, CyberAgent established a new subsidiary, Oen, to support online live streaming and tipping systems for the entertainment industry.[37] This infrastructure proved vital in June 2020, when Abema broadcast a paid, audience-less live concert for the band Southern All Stars. The event sold 180,000 tickets and attracted an estimated 500,000 viewers, proving the viability of a Pay-Per-View (PPV) model. To further secure premium music and anime content for this model, CyberAgent increased its stake in the entertainment conglomerate Avex to 12% in May 2021, becoming its top shareholder.[38]
