Photo/Illutration Japan Broadcasting Corp. head office in Tokyo’s Shibuya Ward (The Asahi Shimbun)

Japan Broadcasting Corp. (NHK) will downsize its operations by cutting its radio and satellite broadcasting channels, sources say.

The public broadcaster's belt-tightening comes in response to criticisms that it has become bloated and inefficient.

The broadcaster’s downsizing plan is expected to be approved at a meeting of NHK’s Board of Governors on Aug. 4.

It will be spelled out in the midterm management plan for fiscal 2021 through fiscal 2023.

NHK is funded through viewing fees that every household and business with a TV set is required to pay under the Broadcast Law.

NHK currently delivers two AM radio channels and one FM radio channel.

In the midterm management plan, it will suggest ways to integrate the two AM radio channels into one, according to the sources. 

It will also cut back its satellite channels in stages.

High-resolution BS1 and BS Premium, as well as BS4K, will be consolidated into two channels, with the possibility they will eventually combined into one in the future.

BS8K will also come under review, given that its operating costs are high, the sources say. 

NHK will compile the official business plan after it solicits public comments about the proposed plan, following the approval at the Board of Governors meeting.

NHK’s operating size is estimated at more than 700 billion yen ($6.6 billion) today.

But it will curtail it to less than 700 billion yen, partly to deal with an expected drop in revenues following the scheduled reduction in viewing fees in October.

An advisory panel with the Ministry of Internal Affairs and Communications has called on NHK to draw up a specific time frame for reducing satellite broadcasting channels. It also called for a plan for how it will implement it, as part of the broadcaster’s efforts to streamline its operations.

At a meeting of the panel in May, the Japan Newspaper Publishers & Editors Association, an independent organization operated by daily newspapers, news agencies and broadcasters, estimated that a fee cut totaling 200 billion yen would be feasible for NHK.

Commercial broadcasters have voiced concerns about the expansion of NHK’s operations as a threat to their operations.

NHK announced in December that it will reduce four BS channels to three in response to the ministry’s recommendation that it should review its overall operations.

(This article was written by Kenro Kuroda and Yusuke Miyata.)