Scandal-plagued NHK expects to rebound in fiscal 2007
The number of people refusing to pay viewing fees to NHK is dropping, and revenue is expected to rebound in fiscal 2007, senior NHK officials said Thursday.
The projection, expected to impact government and political discussions on reforming the public broadcaster, will be included in NHK's business plan for fiscal 2006 to 2008. The plan will be finalized in late January.
Under the plan, NHK will slash its budget for fiscal 2006, which starts in April, to 50 billion yen below the fiscal 2005 budget as announced by NHK President Genichi Hashimoto last September.
It will be the second budget cut in a row since the first NHK scandal broke in summer 2004, embroiling a producer in embezzlement charges.
Revenue for fiscal 2006 is expected to be less than projected in the current budget because some 1.28 million households refused to pay the mandatory viewing fees in light of the scandals and other reasons, as of the end of November, the officials said on condition of anonymity.
However, the pace of nonpayments slowed in October and November as some households resumed payment. It is possible that the number of nonpayments will start falling by the end of the month, the officials said.
The improved response may have resulted from NHK's threat to take legal action against nonpayers. Viewership fees are NHK's main revenue source.
The Broadcast Law requires all households with televisions to pay the mandatory fees, but there is no penalty for not paying.