October 2005
Video on Demand, or VOD, services to deliver TV programs have started. NHK and Fuji TV commenced the service in this July, and NTV announced its start of the service from this October.
Broadcasters' move forward to the introduction of the service is reflecting the favorable environments being created recently; dissemination of broadband Internet, rise in the hours users spend on the Internet, a wave of telecommunications carriers and ISPs launching VOD services, and establishment of provisional rules concerning delivery rights of video images via the Internet based on recommendations of the Japan Business Federation. Also, prospects suggesting more dissemination of the services, based on the premise of the national policy, are encouraging the trend.
However, there is a big difference in approach among terrestrial TV broadcasters. NTV are planning to produce their own VOD contents through capital investment and appointment of right producers. Meanwhile, Fuji TV and NHK exclusively focus on the multiuse of already aired programs. There is also a significant difference in strategies on risk and return. Besides, TBS, TV Asahi, and TV Tokyo are trying to develop video delivery via the Internet in meticulous fashion. Each broadcaster's priority also differs, with some emphasizing program production and some placing top priority on image package or mobile business.
In any case, digitization of broadcasting, which has started amid speculation that advertising market will not grow on a grand scale, is beginning to produce big changes in broadcasters, but at the same time, broadband Internet that is ready to rapidly expand its market is pressing for further changes.