TV Asia Pacific MIPTV 2011 by World Screen

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Asian Drama NHK’s Masayuki Matsumoto www.tvasia.ws

asia pacific THE MAGAZINE OF ASIA-PACIFIC TELEVISION

APRIL 2011

MIPTV EDITION

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Astro www.astro.com.my

“Viewers’ involvement is Reaching some 3 million homes, the Malaysian satellite platform Astro is appealing to the country’s diverse Malay, Chinese and Indian populations with a broad array of imported and locally developed channels.The platform operates more than 30 of its own networks, which are filled with an everincreasing slate of original content.This includes news, magazines and educational programs. “Research shows that Malaysian Chinese are traditional, and they are proud of the life and culture that they currently practice,” says Choo Chi Han, the head of Astro’s Chineselanguage business segment.“Through our lifestyle magazines and documentaries, our viewers learn more about their roots as well as happenings in different parts of the country.” A highlight of the original content lineup is the singing contest Classic Golden Melody, which is for contestants 45 and up. “Not only do we provide a performance platform for the senior contestants, our audience will also get a chance to be entertained with songs that were popular when they were young.”

fundamental in all local productions, be it variety, singing contests and even cooking shows.

”

—Choo Chi Han

Stories from the East Asian drama series are in high demand 12

Interview NHK’s Masayuki Matsumoto 16

Ricardo Seguin Guise

Publisher Mansha Daswani

Editor Kristin Brzoznowski

Managing Editor Morgan Grice

Editorial Assistant Matthew Rippetoe Lauren Uda

Classic Golden Melody

Production and Design Directors Simon Weaver

FremantleMedia Enterprises

Online Director Phyllis Q. Busell

Art Director Cesar Suero

www.fidtv.com

Sales and Marketing Manager Terry Acunzo

• Winners & Losers • Laconia • The X Factor U.S. • American Idol • Anthony Bourdain: No Reservations

FremantleMedia Enterprises (FME) restructured its Asian distribution business last year, expanding the team with the addition of Haryaty Rahman as director of sales, reporting to Ganesh Rajaram, the senior VP of international distribution and home entertainment. “This addition resulted in a massive increase in sales: in 2010, we sold more than 5,000 hours of content,” says Paul Ridley, executive VP of international distribution and home entertainment for the Asia Pacific. Known brands continue to drive sales in the Asia Pacific, Ridley notes, with season ten of American Idol and the upcoming U.S. version of The X Factor on the slate for MIPTV. FME will also be showcasing the new season of Anthony Bourdain: No Reservations, as well as two new dramas: Winners & Losers, from Australia’s Seven Network, and Laconia, a two-part period piece that aired on BBC Two earlier this year.

IN THIS ISSUE

Business Affairs Manager Alyssa Menard

Sales and Marketing Coordinator

Ricardo Seguin Guise

President Anna Carugati

Executive VP and Group Editorial Director

Winners & Losers

“By design, the FME catalogue

includes some of the best content in the world across a wide variety of genres, so there is always something that will appeal to a broadcaster.

”

—Paul Ridley

Mansha Daswani

www.tvasia.ws

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GMA Worldwide www.igma.tv/gwi • Beauty Queen • Jenna • Machete • Dwarfina • Alakdana (The Scorpion Lady)

As a division of the Filipino broadcasting group GMA Network, GMA Worldwide purchases content for two free-to-air networks and sells to the worldwide market a large slate of original series and features. “Over the years, [we have] sustained strong business relationships with clients across the globe,” says Roxanne Barcelona, the VP. “Our programs are dubbed or subtitled in different languages, and are viewed in China, Cambodia, Indonesia, Malaysia, Canada, the U.S., Singapore,Vietnam, Korea, New Zealand, the Middle East, Brunei, and the African territories of Tanzania, Kenya, Nigeria and Uganda.” Among the strongest sellers have been Marimar, The Imposter and Full House. New for this market are the contemporary dramas Beauty Queen and Jenna and the fantasy series Machete, Dwarfina and Alakdana (The Scorpion Lady). Barcelona says that the shows’ unique story lines and varied genres will appeal to a broad base of clients.

Beauty Queen

“[Our] unique story lines and themes and our mix

of directors make for good variety and afford our audience a wider choice of programs.

”

—Roxanne Barcelona

KBS www.kbs.co.kr • Dream High • Detectives in Trouble • Thorn Birds • The Great Conqueror • The Amur

The Korean pubcaster KBS is a prolific producer of content across a range of genres. With a mission of offering up a diversity of voices while being at the forefront of Korea’s digital transition, KBS is able to provide the types of content that its commercial rivals may not be able to deliver, notes Oh-Suk Kwon, executive director and head of the content policy department. “High-cost epic dramas with 60 to 80 episodes, and experimental one- or four- or eight-episode dramas which were abandoned by other networks due to the [revenue constraints] are what only KBS can try.” The broadcaster’s sales arm, KBS Media, is offering Dream High, about the aspirations of a teenager. Detectives in Trouble is an investigative drama. Romance is the theme of Thorn Birds, while The Great Conqueror is a historical epic. “And we are preparing some high quality documentaries such as The Amur and Congo.”

“Most Korean dramas are about romance or family, and these types of stories are easily [understood] by not only Asians but everyone around the world.

”

Thorn Birds

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—Oh-Suk Kwon

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Media Development Authority of Singapore www.mda.gov.sg Dinosaur Train

• The Maverick Chef • Heritage Hunter • Dinosaur Train • Mr Moon • Guess How Much I Love You

The Singaporean pavilion at MIPTV will house ten companies this year, delivering a mix of kids’, factual and dramatic fare—as well as new-media properties.“One of the companies, Aleph, has been shortlisted as one of the two finalists for the MIPTV Content 360 competition under the Rich Media Tablet and Social TV Apps category,” says Yeo Chun Cheng, director for broadcast and music media development at the MDA. Highlights from the linear TV slate, meanwhile, include the animated series Dinosaur Train, Mr Moon and Guess How Much I LoveYou, and the factual shows The Maverick Chef and Heritage Hunter. “MDA sees MIPTV as a key market for our media companies to network and forge relationships with international partners, establish new coproduction deals, and distribute their content. We are also continuing to identify emerging trends and exploit new opportunities that could translate into a longer-term advantage for Singapore in expanding our markets for Singaporemade content.”

“This year’s Singapore pavilion sees an array of animation and live-action properties [on display] from ten companies.”

—Yeo Chun Cheng

National Film Development Corporation Malaysia (FINAS) www.finas.gov.my • Ratu the Movie • The Malay Chronicles: Bloodlines • Islamic Scholars 3 • Claypot Curry Killers • Temptation of Love

The Malaysian pavilion at MIPTV, organized by Adam Ham’s newly established Global Creative & Media Agency, will feature more than 20 companies from a range of genres. The National Film Development Corporation Malaysia (FINAS) is in charge of driving growth in the country’s film-production sector and has already seen strong results this year. KRU Studios’ The Malay Chronicles: Bloodlines, for example, has been released theatrically in several Asian and Middle Eastern territories and has sold to more than 60 countries in all. Other titles to be showcased at the market include Ratu the Movie, Islamic Scholars 3, Claypot Curry Killers and Temptation of Love. “Malaysia now has a competitive advantage where the world sees [us] as an attractive and conducive Asian hub for digital content development for the world,” says Mahyidin Mustakim, the director general of FINAS.

Ratu the Movie

“Local animation and live action

with world-class visual effects are improving in quality.

”

—Mahyidin Mustakim

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Televisa Internacional www.televisainternacional.tv Rafaela

• Rafaela • Triumph of Love • A Fortunate Family • With You, Without You • The Power of Destiny

With an office in Beijing, Televisa Internacional has made great strides in its Asian distribution business. “We’re still pushing to continue our strategy of penetrating China in a more aggressive manner,” says Ricardo Ehrsam, the general director for Europe, Asia and Africa. The Mexican distribution giant has already made a name for itself in this massive television market, with Hunan TV and now CCTV adapting its titles for local audiences. The distribution of completed programming, however, is the basis of Televisa’s business in Asia. At MIPTV, new titles include the telenovelas Rafaela, about a young doctor; Triumph of Love, focused on a famous fashion designer; and A Fortunate Family, a comedy about a poor family whose fortunes suddenly change. Other novelas available are With You, Without You and The Power of Destiny. Outside of the telenovela genre there is Pequeños gigantes, a light-entertainment variety format.

“We’re still pushing to continue our

strategy of penetrating China in a more aggressive manner.

”

—Ricardo Ehrsam

TV5MONDE Asia Pacific www.tv5monde.org/asia • TV5MONDE Asia • TV5MONDE Pacific

With two dedicated Asian feeds, TV5MONDE has been steadily building its distribution in the region over the last few years. Since the opening of its Asia-Pacific office in 2007, “our regional distribution has grown almost 60 percent,” says Alexandre Müller, the managing director for Asia. “Over the past year alone, our distribution has increased by 25 percent to 25.4 million at year’s end, thanks to a strong organic growth of existing contracts in India, Vietnam, Korea and Thailand, as well as a series of new carriage deals in Indonesia,Vietnam,Taiwan and New Zealand.” Key target territories in 2011 are Japan, Korea and Vietnam, Müller notes, “in terms of both distribution and viewership, as we launched subtitles in those languages in the past 18 months and we now expect a return on our investment.” Indeed, subtitling is “mandatory” for TV5MONDE in Asia, Müller says.“Concurrently, we’re launching localized versions of our free online method for learning French in partnership with universities to develop our target market size and help beginners of French become familiar with the brand and our content.”

“We hope to take our business in Australasia to

the next level and sign carriage deals with major local players.

”

—Alexandre Müller

Fais-moi plaisir!

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Stories from

Hong Kong

the East KBS’s Dream High.

From Korean soaps to Japanese epics to Filipino telefantasies and more, Asian drama is in high demand. By Mansha Daswani We all know about the upbeat ad-industry forecasts that have content owners around the world anxious to sell their wares to Asian broadcasters. But there’s another reason that this region is so high up on programming exporters’ to-do lists; its appetite and openness to content from around the world is unparalleled. On major free-TV broadcasters across Asia, U.S. dramas and reality shows sit alongside Korean soaps, Filipino and Malaysian novelas, epic Japanese and Chinese dramas, and Indian serials. Indeed, Asian drama series have shown a surprising ability to travel across the continent, and their major exporters are now keen to widen their client base across the globe. “Southeast Asia is still our strongest territory, but at the same time we are gaining more ground in Africa,” says Roxanne Barcelona, theVP of GMA Worldwide, the sales and acquisitions arm of the Filipino broadcaster GMA Network. “We are [also] opening up Europe and the Middle East,” Barcelona adds. “KBS is paying attention to Latin America and the Middle East as potential markets,” reports Oh-Suk Kwon, the executive director and head of the content policy department at the Korean public broadcaster KBS. “Many Latin American countries have similar values to Asian [countries], in that we both appreciate the family together. And their telenovelas are similar to Korea’s soap318

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opera dramas with more than 100 episodes each. Spanish dubbing is one of the obstacles, but we plan to invest aggressively.” Kwon continues, “Thanks to its tremendous population and similar Asian values, the Middle East market is also attractive. MBC is expected to air a Korean drama in the near future, and we expect that a ‘Korean wave’ will proliferate after that.” A WAVE OF DEMAND

Korea has seen tremendous success in the export of its content since the late 1990s, when the so-called Korean wave began washing across the region, bringing the country’s soap operas to virtually every territory in East and Southeast Asia. “Most Korean dramas are about romance or family, and these types of stories are easily [understood] by not only Asians, but by everyone around the world,” says Kwon, whose company produces a huge slate of content for its three free-to-air networks. Another reason for the success of the country’s content exports, Kwon adds, is that “Korean actors have the looks that can appeal to Asian fans. Male actors are usually portrayed as gentle and warm characters in dramas and are especially popular among female fans in other countries.” 4/11

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Portraits of drama: One of MediaCorp’s most successful Chinese-language dramas has been Breakout.

Kwon also stresses the diversity of KBS’s drama slate. Among the shows to have played particularly well at home recently are the romantic comedy Marry Me, Mary!, the teen-focused Dream High, the historical epic The King of Legend, the political drama The President and the crime-themed Detectives in Trouble. For its exports, however, romantic dramas dominate in most markets across the region, Kwon says. “Also, there are hard-core fans for historical dramas, especially in Japan,” he continues. “For action, detectives or medical dramas, we are not doing very well since we have to compete against Hollywood series that have experience and capital. However, dramas such as Iris and The Slave Hunter have shown the bright future of Korean-style action drama.” The average budget for a Korean drama is between $25 million and $30 million, rising to as much as $35 million for action shows and even more for historical epics, according to Kwon. “Owing to the rise of actors’ and actresses’ paychecks, special-effects costs and frequent global shooting, production costs have increased recently.” KBS’s ability to invest in high-quality productions sets its productions apart from those of its commercial rivals, Kwon says. “High-cost epic dramas with 60 to 80 episodes, and experimental one/four/eight-episode dramas which were abandoned by other networks due to [revenue constraints], are what only KBS can [do].” KBS’s biggest buyers have been Japan, Taiwan and China, with rapid gains seen in its sales to Hong Kong, the Philippines,Thailand,Vietnam and Singapore.

last year’s hit Ryomaden:The Legend, which has notched up deals in Korea,Thailand and China. Another NHK specialty, Iida says, are mini-series featuring social themes, plus romantic stories. “Whether it is a samurai costume drama or a modern love story, if the underlying message is appealing and the story resonates with viewers, the drama can go beyond its borders,” Iida says on what’s driving the export of Japanese fiction.“Princess Atsu, which has been bought in seven territories so far, is a story [set] in 19th-century Japan with many historical incidents and samurai names that are not known to people outside Japan; but it is also a Cinderella story of a girl rising to become the shogun’s wife and eventually making an impact on Japanese history.” Taiwan, Korea, Hong Kong,Thailand andVietnam are NHK’s traditional customers, but the broadcaster did break new ground last year, with a European deal on Goldfish. “Although it was a small-budget, small-cast drama made by one of NHK’s regional

NEXT-DOOR NEIGHBOR

Now among the world’s top ten exporters of content, Korea has been a traditionally insular market when it comes to the importing of television entertainment. The country has, however, shown a fondness for dramas from its next-door neighbor Japan, an equally prolific distributor of programming across the region. More so than its commercial rivals, the public broadcaster NHK focuses on historical dramas that can play to a broad family audience. “Dramas by commercial broadcasters seem to target and be successful among the young generation in their 20s to 30s,” says Kazumasa Iida, the head of international program development at NHK. “NHK dramas, especially the historical costume dramas and the daily morning-slot dramas, are viewed by a wider generation.” Iida says that one of NHK’s biggest hits recently was Princess Atsu, which aired in a Sunday night slot.“It triggered more sales of NHK’s costume dramas, which are now selling quite well,” Iida says, citing as an example

Flights of fancy: Astro is investing in Malay-language dramas such as Awan Dania for its Astro Ria pay-TV channel. 4/11

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Between two worlds: GMA Worldwide is offering up the daytime soap Jenna, about a woman of Filipino and Korean descent.

stations, its simple, universally appealing story and its expression of Japanese aesthetic sensibilities have received worldwide acclaim,” Iida says, noting that the show was licensed to SVT in Sweden. “NHK dramas are well received in Asia, but selling to Europe doesn’t happen that often.” Iida is hopeful that other NHK dramas will be able to find similar success, and he is looking to further drive sales in Indonesia, Singapore, Malaysia, Brunei and Myanmar. SOUTHEASTERN FLAIR

In recent years, Japanese and Korean series have gained tremendous ground in Southeast Asia, a market that historically has been more prone to importing its dramas from Latin America. In the Philippines, for example, GMA Network has picked up numerous titles from Japanese and Korean broadcasters. But the channel has also been ramping up its own production efforts, delivering a mix of contemporary dramas and developing its own brand of “telefantasies”—soaps with a fantasy or science-fiction twist. Shows that have performed well domestically include Alakdana, Dwarfina and Machete on the fantasy front, plus Little Star, Bantatay and Beauty Queen. “When we put them together in drama blocks, we are able to offer a variety of entertainment/drama genres which cater to a wide audience,” says Barcelona. “Lilybeth Rasonable, ourVP for drama, says that this is what sets GMA dramas apart from the dramas of the other networks.The unique story lines and themes and our mix of directors make for good variety and affords our audience a wider choice of programs.” The shows, Barcelona says, have found homes elsewhere in Southeast Asia, and have been picking up steam in the Middle 320

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East and Africa. Top sellers worldwide have included Marimar, Dyesebel, The Impostor and Full House. “These titles were sold to Africa, China, Cambodia, Malaysia, Singapore,Vietnam, Hawaii and Italy,” Barcelona says. Malaysia is another Southeast Asian market that is setting itself up as a key exporter. One of the companies that have put a heavy effort behind developing local content is the DTH system Astro, which is producing drama for its huge slate of networks, targeting Malay- and Chinese-language viewers. For the former, the highest-rating shows recently include Awan Dania on Astro Ria, with three seasons produced, focusing on a flight attendant.The show, says John Leahy, the COO at Astro Entertainment, “has captivated audiences for the past three years and continues to do so currently with a movie spin-off. The current season has stretched Dania’s wings to a private airline and stretched our perepisode budgets significantly with exotic and interesting international locations adding to the drama and color of the series.” Leahy is also particularly proud of Geng Surau, which airs during Ramadan on Astro Oasis. “Based on the success of this project we can say that we have managed to successfully thread the fine line that combines comedy and religion. Our approach was to [combine] a very moderate view on the integration of religious issues with a modern approach to the topics of Islam and the Muslim society, in a light and positive yet comedic tone.” Leahy adds, “We have had most success with dramas that provide light relief or allow our audience to live vicariously through the lives of our characters. So it is fair to say that our comedy, action comedy and romantic comedies have performed well. In addition, we have had good success of late with the horror genre.” 4/11

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Astro has been able to sell its Malay dramas into Singapore and Brunei,“and we are planning to widen our presence in the Southeast Asian region,” Leahy says. Seeing the potential of the Malaysian drama-production sector, José Escalante, the CEO of Latin Media Corporation (LMC), has partnered with Malaysia’s Worldwide Rights Corporation (WRC) on two local productions: Bola Cinta, which has performed well for RTM’s TV2, with a second season in the works, and, new for this year, Pesona Kasih (The Temptation of Love). Escalante is targeting the worldwide market with these shows, with LMC and WRC already clinching deals in Asia, the Middle East and Africa for the teen-targeted, footballthemed Bola Cinta. “Every territory that has a TV station, that has an audience following them, [translates] to room for growth,” says Escalante. LEARNING MANDARIN

“China and other Southeast Asian territories are the biggest consumers of our Chinese dramas currently,” says Tang Yun Leung, the VP of content distribution at MediaCorp. “We are actively pursuing the American and Australian markets, both of which have a sizeable Chinese community. We see a potential for demand of Chinese dramas in these two territories.” Asked about the appeal of MediaCorp productions, Tang says, “[Our] strength lies in producing contemporary dramas. With Singapore’s cosmopolitan city as a backdrop and our strong multicultural heritage, we are able to produce dramas that are contemporary and yet steeped with tradition and culture that our Asian buyers can relate to.” With the sheer number of Mandarin-language speakers across the Asian continent, it’s no surprise that Chinese dramas have traveled well regionally. A tougher sell has been content from the subcontinent, with Hindi-language serials from India’s big channel brands rarely straying into East Asia. They have, however, found slots in Southeast Asia, the Middle East and Africa, and with growing Indian populations in Europe and North America, will likely be able to crack open new markets in the years ahead. Indeed, geographic expansion is the top priority for Asian content owners, keen to show that their dramas can travel as well as those from the U.S. and the U.K. GMA will be on site in Cannes with new series like Beauty Queen and Jenna. NHK Enterprises has a large drama slate for MIPTV, from mini-series to one-offs to longer-running productions. KBS Media has high hopes for its new Korean series Dream High, Detectives in Trouble, Thorn Birds and The Great Conqueror. And Celestial has two new period dramas, The Legend of Yang Guifei and The Tale of the Royal Seamstress. Celestial is also offering Fall in Love with Anchor Beauty, a Chinese remake of a popular Korean drama, reflecting the emergence of what could be a new growth area for Asian content sellers: scripted formats.

In building its content-export sector, Malaysia is undoubtedly looking to achieve the kind of trajectory, and longevity, experienced by Chinese-language content.“Before there was a Korean wave, there was a Chinese wave,” quips Gigi Ko, the director of nontheatrical distribution at the Hong Kong–based Celestial Pictures. “People around the world grew up watching martialarts dramas from Hong Kong and Taiwan, and so there is still great affection all across Asia (and the world) for the stars from those countries. The recent trend is the rise of high-quality TV productions from China.These productions have the budget to hire the best cast and crew from around the region and thus appeal to a greater audience around the world.” Celestial, best known for being home to the legendary Shaw Brothers catalogue of martial-arts classics, has produced a number of successful drama series, notably the period piece Empress Feng and the fantasy Chinese Paladin III. Mentioning Singapore, Malaysia, Vietnam and Thailand as Celestial’s biggest buyers, Ko notes, “Martial-arts epics do well across the board. Period dramas do well across Asia, and contemporary dramas such our latest series, Fall in Love with Anchor Beauty, do well in Greater China and Southeast Asia.” Speaking about her expansion strategy, Ko sees potential to boost Celestial’s business “in the Middle East and Eastern Europe—they show immense interest in acquiring Chinese dramas, particularly those of the martial-arts genre. With the rapid growth of the Indian TV market, we hope to see more demand coming from that country as well.” Celestial’s latest effort is Journey to the West, which Ko refers to as “one of the highest-budgeted TV dramas ever from China. This latest adaptation of the legendary novel costs around RMB2 million ($305,000) per episode.” Mandarin-language dramas have also been strong sellers for Singapore’s MediaCorp, which lists Breakout as one Empress’s new clothes: One of Celestial’s two Chinese-language period dramas is of its best-performing properties. The Legend of Yang Guifei. 4/11

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hard to assist those who still have difficulty receiving it and, together with the use of the state’s “satellite safety net,” we are determined to meet our responsibility as a public broadcaster to ensure 100-percent coverage. Meanwhile, some issues remain on the receivers’ side, such as the digitization of community reception facilities and the setting up of the proper receiving antennas. There are many challenges to overcome in the next four months, but we are committed to doing our utmost to help make our viewers’ transition to digital as smooth and seamless as possible. Broadcasting’s migration from analogue to digital transmission is a major global innovation. But at NHK, it’s more than that: it’s a great opportunity. Digital broadcasting using Hi-Vision (HD) technology will enable television to evolve into a multifunctional, interactive medium with high-quality picture and sound. We aim to offer diverse services that best suit each platform, such as data broadcasting for television and [mobile digital terrestrial]. TV ASIA PACIFIC: How do NHK’s websites support the

NHK’s

Masayuki Matsumoto By Anna Carugati

For millions of viewers in Japan and around the world, NHK was a key source for news on the devastating earthquake and tsunami that hit the country in March. The public broadcaster, as part of its mission statement, provides emergency alerts during natural disasters, and its international channel brought first-hand footage of the devastation, and the recovery efforts, to audiences across the globe. The broadcaster’s new president, Masayuki Matsumoto, spoke with TV Asia Pacific before last month’s tragic events about being at the forefront of the digital transition, with the analogue switch-off scheduled for this summer, and about maintaining viewers’ trust.

TV ASIA PACIFIC: What are the major challenges and

opportunities that NHK faces this year as the country switches over to digital? MATSUMOTO: Our primary responsibility as a public broadcaster is to bring quality and diverse programming to every corner of Japan. That mandate is going to be an even bigger challenge when our broadcasts go digital, later this year. The scope of this switchover cannot be understated—it’s a huge national project. Digital terrestrial broadcasting launched in December 2003, so that means Japan has had less than eight years to replace its 110 million analogue televisions with digital devices. We’ll be the first country in Asia to be fully digitized, and NHK is doing everything it can to make this happen. Currently, our digital broadcasting signal covers more than 99 percent of households in Japan. NHK is working 322

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programming available on NHK channels? What type of connection and coexistence do you seek? MATSUMOTO: We are committed to giving our audience access to our content when they want it and how they want it. That’s the purpose of NHK’s “3-Screens” policy— making programming available not just on TV, but also on PCs and mobile devices so viewers can watch at their convenience. Making use of the Internet is an integral part of NHK’s approach, but for many years we were only allowed to provide program-related information on our websites. However, after Japan’s Diet amended the Broadcast Law in 2008, NHK was able to launch NHK on Demand (NOD), our fee-based video-on-demand service. NOD allows members to watch programs they’ve missed up to two weeks after the original broadcast. In addition, they can access popular shows from NHK’s archives. The demands of our viewers are becoming more diverse. People no longer want to be constrained by time slots. NHK is determined to constantly update and enhance NOD to allow viewers to watch more of their favorite programs when it suits their schedule. We are also aiming to offer simultaneous online broadcasts of radio programs to deal with the deterioration in radio signals caused by skyscrapers and the interference of various waves. We are currently asking the government for permission and, if allowed, we will launch the service this autumn. I have a great deal of confidence in our content and I want to deliver it to the public through a variety of media, including the Internet and other transmission routes. To this end, we need to examine whether the current receiving-fee system is sustainable in the future. We have set up a committee of academics to discuss various options. TV ASIA PACIFIC: NHK is projecting a surplus in 2011, the first in three years. What factors have contributed to this improved performance? MATSUMOTO: NHK has managed to successfully navigate the tough economic climate by focusing on a two-pronged approach: providing quality programs and increasing our 4/11

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efforts to collect receiving fees from our audience. Our three-year corporate plan for fiscal 2009–2011 called for improving payment rates, and NHK is working harder to realize this goal. [License] fees account for more than 96 percent of our total revenue, so we have concentrated on collecting unpaid fees. As a result, we are forecasting the revenues from receiving fees for fiscal 2011 to reach ¥668 billion ($8.2 billion), a ¥13 billion ($158.7 million) increase from the previous year. When we include other income, such as charges for secondary use of programs, we [anticipate that] total revenues for fiscal 2011 will increase by ¥14 billion ($170.9 million) and reach ¥692.6 billion ($8.5 billion). On the expenditure side, we will continue to concentrate on the upcoming digital switchover and bolster our regional broadcasting capabilities. At the same time, by making our business operations more effective and efficient, we have managed to limit spending. Consequently, we [forecast that] NHK will achieve a budget surplus of ¥4 billion ($49 million) for fiscal 2011. TV ASIA PACIFIC: The three-year corporate plan includes the goal of reaching an 80-percent weekly reach. How is the organization looking to achieve this? MATSUMOTO: The most important factor in achieving this goal is to continue to produce high-quality, diverse Out in the cold: NHK has been using international co-productions to content. By offering this programming on various plat- deliver high-quality documentary fare such as Life Force. forms, our audience will be able to access NHK’s content whenever and wherever they want. This is how we gramming. As a result, the ratings of the weekday 8 a.m. intend to raise our weekly reach. time slot went up drastically. We are encouraged by these Next Japan, a project that provided news and feature sto- positive responses and will continue to improve our prories that deeply probe and report on domestic and global gramming to achieve an 80-percent weekly reach. issues, was highly appreciated by our viewers. We have also further developed our “3-Screens” approach. TV ASIA PACIFIC: How has NHK regained the public’s NHK has also made important changes to its scheduling. trust following the unfortunate incidents of embezzlement For example, to fit the lifestyles of people who are at home by some employees? in the morning, we changed the starting time for our MATSUMOTO: It is vital for NHK to continue to maintain morning drama series and enhanced our information pro- the trust of its audience if it is to carry out its journalistic tasks and fulfill its mission as a public broadcaster. In 2008, we instituted organizational reforms and set up an enterprise risk-management office. Along with that, we strengthened internal controls and took effective measures to ensure that all our employees comply with our standards and practices. Raising employee awareness and holding training or study sessions is an ongoing job across NHK’s vast network of bureaus and offices. As president, it is my responsibility to take the lead and firmly instill within each and every employee the ideals of public broadcasting and the expectations of our audiences in order to ensure our constant compliance Family ties: NHK has been able to attract large audiences with its dramas—among them with the regulations. The Eighth Day of Cicada—which have also sold well across the region. 324

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