NHK Eyeing 20-B.-Yen Cap on Internet-Related Biz Costs


Tokyo, Nov. 11 (Jiji Press)--Japanese public broadcaster NHK has announced a plan to set a cap of 20 billion yen for its internet-related business costs per year from fiscal 2021, dropping its earlier proposal to abolish the upper limit on such expenses.

NHK, whose official name is Japan Broadcasting Corp., on Tuesday filed for communications ministry approval for the revised plan, announced the same day.

In September, NHK revealed a plan to scrap the current system that sets the upper limit for costs on its internet businesses, including the NHK Plus service of simultaneous television broadcasts on the internet, at 2.5 pct of its viewing fee revenue. But a number of public comments called for a cap to be imposed, prompting the broadcaster to come up with the revised plan.

“It’s more reasonable to set a cap in terms of amount, not a percentage of the viewing fee revenue,” which tends to fluctuate, Shunzo Morishita, chairman of NHK’s Board of Governors, told reporters. The board approved the change in the plans.

Under NHK’s fiscal 2020 budget, the amount of funds for its internet businesses, excluding spending related to the Tokyo Summer Olympics and Paralympics next year, has been set at 17 billion yen, or 2.4 pct of its estimated viewing fee revenue worth about 700 billion yen for the year through next March.

[Copyright The Jiji Press, Ltd.]

Jiji Press