There are persistent concerns that the public broadcaster supported by subscription fees will become bloated. Efforts to promote operational efficiency must not be slackened.
NHK has announced it will cut TV viewing fees by 2.5 percent from October 2020. The monthly fee for a contract to receive terrestrial broadcasts will become about 35 yen cheaper, and that for receiving satellite broadcasts about 60 yen cheaper.
Meanwhile, the broadcaster will keep the fees unchanged when the consumption tax rate is increased in October 2019. NHK has explained that the inclusion of this step will result in a real fee cut of about 4.5 percent.
NHK's annual revenue from subscriptions reaches about 700 billion yen. This figure has jumped by almost 90 billion yen over the past decade thanks to strengthened efforts to collect the fees and a Supreme Court ruling that deemed the subscription payment system to be constitutional.
NHK claims this is "the largest price cut possible for now," but is there any room for the broadcaster to give viewers more value for their fees? NHK should constantly consider this issue.
The national average proportion of TV owners who pay the fee has improved to 80 percent, but it is fewer than 70 percent in the Tokyo metropolitan area and Osaka Prefecture. In Okinawa Prefecture, barely 50 percent pay the fee. Rectifying the sense of unfairness among TV viewers also is essential.
When a disaster strikes and at certain other times, NHK broadcasts TV programs and simultaneously streams them online. The broadcaster aims to switch to simultaneously streaming its programs online at all times from fiscal 2019.
It is said that trimming viewing fees was a condition for this simultaneous broadcasting service. The recently announced fee reduction appears to be a strategic move toward making the simulcasting plan a reality.
Consider private broadcasters
Given that NHK is a public broadcaster that survives financially due to the subscription fee system, a degree of moderation is needed in any expansion of its operations. NHK will not gain public support if it presumes such changes are foregone conclusions.
NHK's online operations have been positioned as a supplement to its TV broadcasts. Consequently, there is a rule that expenses on these operations are "capped at 2.5 percent" of revenue accrued from viewing fees.
Even if NHK is allowed to go ahead with 24-hour simultaneous broadcasting, complying with the current rule setting the upper budget limit is essential.
If the brakes come off NHK's use of subscription fee revenue, it could result in the organization becoming bloated and have an impact on private operators.
NHK should divide the financial administration of its broadcasting and online operations, and also clearly disclose their income and expenditures.
On Saturday, NHK will start high-definition 4K and 8K broadcasts. As a result, the combined number of NHK's terrestrial and satellite TV channels will increase from four to six. Since it would be difficult to reduce terrestrial broadcasts, which people are familiar with, cutting satellite broadcasts could become an issue.
NHK's low level of cost-consciousness is also a problem. The broadcaster needs to thoroughly review whether money is being wasted in areas such as program production and other costs and in the operations of affiliated companies.
NHK's stable income gives it a tremendously advantageous position financially over private broadcasters. The collapse of the current dual structure, in which NHK and private broadcasters improve themselves through competition, must be avoided. NHK must quickly show a path to reform.
(From The Yomiuri Shimbun, Nov. 30, 2018)
Read more from The Japan News at https://japannews.yomiuri.co.jp/
