NHK, as the public broadcaster supported by so-called receiving fees, must rectify the bloated nature of its operations. Concrete measures for that purpose are being called into question.
NHK has compiled a draft of its next business plan for fiscal 2021 through 2023. The main pillar is the reorganization of its channels.
Of the four satellite channels, NHK plans to gradually consolidate three channels -- BS 1 focusing on news and sports, BS Premium mainly featuring entertainment programs, and the high-definition BS4K -- into one. Two AM radio stations, Radio 1 and Radio 2, which focuses on language learning programs, will be united into one.
NHK plans to officially draw up the plan as early as this year after soliciting opinions from the public.
The Internal Affairs and Communications Ministry has called for a three-part reform of NHK's business, receiving fees and organizational governance. It should be an effective plan for streamlining operations.
NHK is a special public corporation under the Broadcast Law. It has no need to seek a profit and does not pay corporate taxes.
In fiscal 2019, revenue from receiving fees totaled about 710 billion yen, up nearly 10% from fiscal 2010. Over the past 10 years, the cost of programming and other domestic broadcasting has increased by about 30%.
NHK, which has been given preferential treatment, should not be allowed to continue squeezing private broadcasters.
In the spring of this year, NHK started simultaneous online streaming of its TV programs as a measure to stop young people from staying away from television. It is only natural for NHK to review other operations if it embarks on a new field.
The problem is that the draft plan this time did not step into the reform of its subsidiaries and the reduction of receiving fees as requested by the communications ministry and other entities.
Unlike the parent company, the subsidiaries are a joint stock company and can engage in projects to generate revenue. However, many of them compete with the private sector in event planning and mail-order and other businesses.
It has been pointed out that more than 90% of transactions within the NHK group are discretionary contracts and that the group has a high cost structure. The fact cannot be overlooked that it has accumulated a surplus of funds.
It is hoped that NHK will carry out reforms, such as reorganization of subsidiaries and personnel cuts, while limiting the scope of its operations.
It is important to ensure that such efforts will lead to lower receiving fees. The Japan Newspaper Publishers and Editors Association estimates that income from receiving fees can be reduced by 200 billion yen.
NHK said that it will consider integrating terrestrial and satellite broadcasting contracts into a single "total reception fee." Increasing the burden on households that only view terrestrial broadcasting must be avoided. It is necessary to make the fee acceptable to the bulk of the public.
It is also essential to clarify the role of public broadcasting. There are more NHK entertainment programs that are similar to those of commercial broadcasters, but it is important to deepen discussions on how NHK should be, including the appropriateness of these programs.
-- The original Japanese article appeared in The Yomiuri Shimbun on Aug. 5, 2020.
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