January 14, 2020 Approval to Change in NHK’s Criteria for Operations under Item 2 and 3, Paragraph 2, Article 20 of the Broadcast Act

The Ministry of Internal Affairs and Communications (MIC) submitted today an inquiry to the Radio Regulatory Council (Chaired by Susumu Yoshida, Specially Appointed Professor, Kyoto University) on a change in the criteria of Japan Broadcasting Corporation (also called NHK, headed by UEDA Ryoichi, President) for operations under Item 2 and 3, Paragraph 2, Article 20 of the Broadcast Act. MIC received by return a report from the Radio Regulatory Council stating its approval as inquired.
Accordingly, MIC has decided to approve NHK’s change effective today.

Overview

NHK applied for approval on October 15, 2019, which included new operations, including simultaneous distribution and the change of the upper limit of the cost required for the implementation of Internet utilization operations based on the provisions of Article 20, Paragraph 9 of the Broadcasting Act (Act No. 132 of 1950), for a change in the implementation standards of operations (hereinafter referred to as “Internet utilization operations”) specified in Number 2 and 3 of Paragraph 2 of the same act.

In response to the application, MIC issued the Basic Policy of the Ministry of Internal Affairs and Communications on the Handling of Approval to Applications for Changes in Internet Broadcasting Practice Standards of Japan Broadcasting Corporation. MIC requested NHK to consider the basic concept and made an appeal for opinions on the basic concept.

On December 23 of the same year, MIC announced its view on the response of NHK’s deliberation and the results of the appeal for opinions. On December 24 of the same year, NHK applied for a revision of the standards for the implementation of Internet-based operations (see PDF link 1).

MIC’s view on the amended application is as shown in PDF link 2. Regarding the change of the practice standards for Internet utilization operations related to the amendment application (hereinafter referred to as “the application”), MIC consulted the Radio Control Council about the change with the conditions specified below. MIC received by return a report from the Radio Regulatory Council stating its approval as inquired.

In response to this report, MIC will give NHK an approval on this matter today.

Authorization conditions

1. 1.
   In conducting Internet utilization operations, NHK shall make them effective for citizens and viewers to watch broadcast programs. From the viewpoint of improving broadcasting services, NHK shall endeavor to share the results of knowledge obtained through the implementation of the operations with related broadcasters, such as private broadcasters.
2. 2.
   Regarding NHK’s cooperation and coordination with other broadcasters stipulated in Article 10 of the application, NHK shall prepare an opportunity necessary for consultations at the request of other broadcasters.
3. 3.
   For the Tokyo Olympic and Paralympic Games, regarding related programs that are always simultaneously distributed without displaying messages based on Article 4, Paragraph 6 of the Supplementary Provisions, NHK shall clarify the target in the implementation plan while considering the purpose of the reception fee system and the impact on market competition.
4. 4.
   NHK shall provide programs being broadcast in fiscal 2019 as per Article 2, Paragraph 1 of the Supplementary Provisions, within the budget of Internet utilization business for fiscal 2019.
5. 5.
   As for the specific provision time of programs being broadcast from April 1, 2020, based on Article 2, Paragraph 2 of the Supplementary Provisions, NHK shall determine an implementation plan, taking into account the situation of costs according to an increase in users, in order not to withdraw the purpose of setting the upper limit of expenses in Article 17, paragraph 1 of the application.
6. 6.
   NHK shall study a specific mechanism for controlling the cost of the Internet utilization operations, obtain certain conclusions during fiscal 2020, and introduce it early.
7. 7.
   Regarding the balance of paid operations, if it is expected to be worse than that expected in Annex 2 of the plan, NHK shall clarify countermeasures for the implementation plan and take measures to improve the cumulative balance of paid operations.
8. 8.
   About the efficiency of existing Internet utilization operations, NHK shall clarify the direction and content of the implementation plan of fiscal 2020.
9. 9.
   With regard to the provision of broadcast programs specified in Article 14, Paragraph 5, the outline of the types of terminal equipment and software to be provided should be described in the implementation plan.
10. 10.
    Regarding the scope of promoting information on Article 5 of this proposal, NHK will provide an opportunity to hear opinions from competitors and verify that it has been properly implemented.
11. 11.
    In the case of diverting the budget pursuant to Article 5 of the Supplementary Provisions of this proposal, the description and publication of expenses required for the operations listed in the items of the same Article in the business report of the fiscal year, the details of expenses that can be entered should be entered in a format that conforms to the cost schedule shown in Annex 3-2 of the Appendix of the Regulations for Enforcement of the Broadcast Act (Radio Regulations Commission Regulation No. 10 of 1950).
12. 12.
    In principle, the calculation method for cost reduction should be directly charged, and if necessary, NHK shall review the cost allocation method based on actual results.