Photo/Illutration Terunobu Maeda, president of Japan Broadcasting Corp., explains the public broadcaster’s midterm management plan in August 2020. (Asahi Shimbun file photo)

Japan Broadcasting Corp. (NHK) has announced its plan to lower viewing fees in fiscal 2023, marking a change of course after initially insisting it would prioritize cost-cutting efforts.

NHK outlined its planned fee reduction in its midterm management plan for fiscal 2021 through fiscal 2023 on Jan. 13.

It plans to secure about 70 billion yen ($675 million), equivalent to 10 percent of its operating expenditures, to cover the expected drop in viewing fees by reviewing rebuilding plans for its broadcasting center in Tokyo’s Shibuya district and pooling its surplus funds. 

The public broadcaster did not mention a fee reduction in its draft management plan, unveiled in August 2020.

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

The reversal follows prodding from the government to reduce fees amid the pandemic.

Last October, the broadcaster reduced viewing fees by 35 to 60 yen a month, but its surplus fund continues to grow. The fund ballooned from about 80 billion yen in fiscal 2015 to 128 billion yen in fiscal 2019.

Against this backdrop, communications minister Ryota Takeda urged NHK to further lower viewing fees.

“The broadcaster should consider seriously what it can do to reduce the financial burden on households amid the COVID-19 pandemic,” Takeda said.

But NHK President Terunobu Maeda has said the broadcaster was prioritizing streamlining services, such as reducing its satellite channels.

“We do want to lower (viewing fees), but it’s not that simple,” Maeda said. “We will create the conditions to realize a fee reduction as quickly as possible.”

In the midterm management plan, NHK also included its plan to consolidate two satellite TV channels--high-resolution BS1 and BS Premium--into one by fiscal 2023.

The broadcaster currently operates two AM radio channels and one FM radio channel. It will also consider integrating the two AM radio channels into one by fiscal 2025.

Viewing fees for NHK’s terrestrial channels currently cost 1,225 yen a month if payments are made by account transfer or credit card, and 2,170 yen for its terrestrial and satellite channels.

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

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