DATE: 96/06/26
TITLE: Vision for Advancement of Broadcasting (Final Report)

Press Release

June 26, 1996 Ministry of Posts and Telecommunications

"Vision for Advancement of Broadcasting (Final Report)"

The environment surrounding broadcasting is presently undergoing rapid change. This has made it difficult to predict the future images of broadcasting, and also has increased the public concern about the future of broadcasting.
The Ministry of Posts and Telecommunications (MPT), aiming to identify as clearly as possible, the future images of broadcasting in the year 2010, as well as determining the process that will lead up to that year, began holding meetings of the "Study Group on the Vision for Advancement of Broadcasting" (chaired by Dr. Hiroshi Inose, Director General of the National Center for Science Information Systems (NACSIS)) this February. The Study Group comprises representatives of the Radio Regulatory Council and the Cable Broadcast Committee of the Telecommunications Council.
At today's meeting, the appended "Vision for Advancement of Broadcasting (Final Report)" was arranged.
Based on the "Vision for Advancement of Broadcasting (Interim Report)" published on April 8 this year, the final report sought the opinions of people in a wide range of fields in order to broaden and enrich the contents of the Interim Report. The final report was drawn up on the basis of opinions expressed by individuals, broadcasters, broadcasting equipment manufacturers, and other relevant entities.
The names of people who offered their views, a summary of their views, and the Committee's thoughts on such views are indicated in the appended "Views Regarding the Interim Report".
The "Vision for Advancement of Broadcasting" is summarized in Appendix 1, and the members of the Committee are listed in Appendix 2.
The MPT intends to reflect the points mentioned in the final report in its future administration.

Contact:

Broadcasting Policy Division,

Broadcasting Bureau

Tel. (03) 3504 4909

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(Appendix 1)

Summary of "Vision for Advancement of Broadcasting"

Chapter 1 : Basic Concept

1. Objectives of preparing the "Vision for Advancement of Broadcasting" The environment surrounding broadcasting is presently undergoing rapid change. This has made it difficult to predict the future images of broadcasting.
   The "Vision for Advancement of Broadcasting" aims to identify as clearly as possible, the future images of broadcasting in the year 2010, as well as determining the process that will lead up to that year. In this way, it will contribute to expand the selection of choices available to viewers and broadcasters, as well as to support the administrative work to be undertaken from a long-term perspective, and to help improve the transparency of the work.
   The "Vision of Advancement of Broadcasting" will be prepared under the above-mentioned objectives.
2. Basic concept for preparation
   [Six points to note]
   (1) Free and flexible approach
   (2) Focus on the transmission characteristics of each media
   (3) Consideration of international trends
   (4) Focus on viewers' perspective
   (5) Points to note in connection to broadcasting as an industry
   (6) Points to note in connection to significant technological developments
   
3. Specific preparation methodology
   We will endeavor to draw a total picture of broadcasting from the viewers' perspective and map out the possibility of change which the broadcasting business may experience. We will do so by examining the relationship of competition and cooperation among three types of media--CATV, satellite broadcasting and terrestrial broadcasting--based on forecasts of market scale and the progress that each type of media will experience (rate of acceptance, rate of digitalization and the number of channels).

Chapter 2 : Broadcasting in 2010

1. Progress in the three types of media

   CATV

   By utilizing its own facilities, or the facilities of telecommunications carriers, CATV will broadcast to 60% of all households. The broadcasting will be digital, multichannel (between 200 and 250 channels) broadcasting.

   Satellite Broadcasting

   With the generalization of reception via CATV, along with direct reception, satellite broadcasting will broadcast to more than 80% of all households. The broadcasting will be digital, multichannel (between 400 and 500 channels) broadcasting. Moreover, viewers will see virtually no difference between BS and CS.

   Terrestrial Broadcasting

   In general, terrestrial broadcasting will be digital, and the number of channels will increase up to 20 to 30 channels, responding to demands. Terrestrial broadcasting will also respond to demands for mobile reception.

2. Future size of the broadcasting market
   • Between 1996 and 2010, CATV and satellite broadcasting will register high growth rates, expanding by a factor of six or seven. Consequently, paid broadcasting will account for a higher share of the market.
   • Terrestrial broadcasting is forecast to grow by a factor of 1.6, approximating the economic growth rate. Although terrestrial broadcasting will be significantly affected by the increased acceptance of CATV and satellite broadcasting expected in the future, if terrestrial broadcasters offer new kinds of services such as paid broadcasting, through digitalization, major changes may take place.
   • The private broadcasting industry is anticipated to grow at a rate that is approximately twice the forecast economic growth rate. However, it is possible that digitalization will enable the private broadcasting industry to incorporate other industries, and achieve further development.

3. Cooperation and competition in broadcasting in 2010
   [Examples of Cooperation and Competition]
   • Major satellite programs are broadcast on CATV
   • Identical programs can be viewed by CATV indoors and by terrestrial broadcasting outdoors
   • Terrestrial and satellite broadcasting each others' programs mutually
   • Competition between direct reception of CATV and satellite broadcasting
   • Competition between CATV and terrestrial broadcasting in regional broadcasting markets
   • Competition between satellite broadcasting and terrestrial broadcasting networks

4. Total broadcasting image for viewers
   • To enable a single receiver to respond to diverse broadcasting methods, cards will be used in the broadcasting system. The receiver will also incorporate communications and personal computer functions.
   • The receiver will be further classified in accordance with the viewing type (common use type, individual use type and mobile use type).
   • In addition to conventional, general programs, there will be a significant increase in the number of specialized and information-oriented programs. The way programs are provided and the method of editing them will take entirely new forms that benefit from digital technologies.
   • The use of digital technologies will reduce the per-channel viewing charge, and rate adoption facilitating viewer selection will be introduced.

Chapter 3 : Future Administration

1. Efforts for the digitalization of broadcasting
   The digitalization of broadcasting is of significance in several respects, including the effective use of radio waves, development of new broadcasting business, improved viewer convenience and its impact on industries in general. These advantages require that we make a comprehensive effort to digitalization. More specifically, we will need to take the following measures: prepare frequency use plans at an early stage; decide on the introductory period and policies to ensure that the three types of media are consistent with one another; take measures to relieve viewers from unnecessary burden.

2. Medium and long-term study to build a new broadcasting administration framework It is necessary to conduct a medium and long-term study in order to develop a new broadcasting administration framework, by taking into account broadcasting digitalization.

   [Direction of Study]

   • Shift from primary focus on terrestrial broadcasting to cooperation among the three types of media.
   • Shift from primary focus on domestic broadcasting to adoption of comprehensive policies covering domestic and international broadcasting.
   • Shift from primary focus on general broadcasting to task allocation between specialized and general broadcasting.
   • Promotion of competitive policies and ensuring of fair competition in the paid broadcasting market.
   • Examination of coexistence of NHK and private broadcasting stations from a fresh perspective.
   • Establishment of a system that takes into account consistency between communications and broadcasting.

3. Building an environment to allow everyone to enjoy the benefits of advancements in broadcasting
   By 2010, broadcasting will make advancements with technological innovation as its background. However, under market principles, some people are expected to miss out on advancements in broadcasting for a variety of reasons.
   Thus, taking into consideration, the given role of broadcasting as being part of the social infrastructure, we must build an environment in which everyone can reap the benefits of advancements in broadcasting.

   [Specific Measures]

   • Resolve problems related to radio disturbance in cities and poor reception in broadcasting in remote areas through the three types of media.
   • Assist minorities and disadvantaged members of society, such as the disabled.
   • Reinforce the function of broadcasting as a lifeline during emergencies.

4. Efforts to advance and diversify broadcasting software
   Broadcasting software plays a central role in Japanese video software. The buildup of such software is expected to be used from new perspectives in the future. Advancements and diversity in broadcasting software will not only ensure the development of broadcasting or broadcasting businesses but also have a far-reaching impact on Japan's info-communications industry in general.

   [Specific Efforts]

   • Related to the production process:
     Foster human resources, upgrade facilities and assist in technological development.
   • Related to the distribution process:
     Utilize stock of broadcasting software, promote international distribution and streamline authorization procedures.
   • Related to the processing and utilization Develop environment for utilizing video materials.

5. Development of comprehensive research and development systems to advance broadcasting technologies
   The advancement of broadcasting technologies not only is vital to advancing broadcasting, but also has great significance in regard to advancements in the info-communications industry in general. As such, it is essential to develop comprehensive research and development systems to advance broadcasting technologies.

   [Specific Efforts]

   • Draw up broadcasting technology research and development guidelines
   • Promote public assistance for developing broadcasting technologies
   • Introduce standardization policies that reflect the realities of international competitive markets
   • Improve human interface of the receiver

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Summary of "Views Regarding the Interim Report"

1. Broadcasting as an industry

Main view

• The social role of broadcasting should be clarified further.

Study Group's position

• The importance of broadcasting's social role will remain unchanged in the future.
• In the Interim Report, the aspect of broadcasting as an industry was emphasized in line with the increased weight of paid broadcasting and the introduction of multichannel broadcasting.

2. Discussion of high-definition broadcasting

Main view

• The role of high-definition broadcasting should be discussed further.

Study Group's position

• High-definition broadcasting will play a specific role in broadcasting in 2010.
• Multichannel and high-definition broadcasting may be selected and will constitute a vital element in the advancement of broadcasting.

3. Progress of three types of media

Main view

• Comments on rate of acceptance, number of channels, market size, etc.

Study Group's position

• The figures reflect the general position of the Committee.
• Further studies will be conducted based on the points raised.

4. Role of each media

Main view

• Distinctions between BS and CS, such as differences in the status of acceptance, will continue to exist in the future.
• Terrestrial broadcasting will remain a key media in the future.

Study Group's position

• Receivers will not be aware of the distinctions between BS and CS.
• By making use of software production capability, terrestrial broadcasting will play a vital role in media in general.

5. Method of proceeding with digitalization taking viewers' burden into account

Main view

• Specific measures for digitalization should be indicated.
• Viewers' burden, such as the viewing charge, should be taken into consideration.

Study Group's position

• It is necessary to present a specific schedule for the digitalization of terrestrial broadcasting.
• Promoting digitalization that ensures consistency of each media.
• Not to impose unnecessary burden on viewers at the time of digitalization.

6. Technological development

Main view

• Recommendations regarding various functions of receivers.
• It is essential to develop advanced paid broadcasting systems, including accounting systems and security technology.

Study Group's position

• Advanced in paid broadcasting systems are indispensable for the development of the paid broadcasting market.

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(Appendix 2)

List of Members of the "Study Group on the Vision for Advancement of Broadcasting"

Chairman

Dr. Hiroshi Inose

Director General, National Center for Science Information Systems

Deputy chairman

Kazuo Horiuchi

Professor, School of Science and Engineering, Waseda University

Other members

Sumiko Iwao

Professor, Institute for Communications Research, Keio University

Shunji Kono

President, The Tokio Marine and Fire Insurance Co., Ltd.

Shoichi Sato

President, J-Net

Hiroshi Shiono

Professor, Faculty of Law, Seikei University

Shigemichi Sonoyama

Chairman, Mobile Radio Center, Inc.

Masayuki Funada

Professor, Faculty of Law, Rikkyo University

Takao Masuzawa

Chairman of the Board, The Long-Term Credit Bank of Japan, Ltd.

Hideru Momozaki

Director General, The Institute of Administrative Information Systems