Q77 Why is Japan's broadcasting industry so small?

A77 Nippon Hoso Kyokai (NHK), also known as the Japan Broad-casting Corporation, is Japan's only public broadcaster and started radio broadcasts before the Second World War. The first private commercial broadcaster in Japan was Nagoya-based Chubu-Nippon Broadcasting Co., Ltd., which started radio broadcasts in 1951. Nippon Television Network Corporation, based in Tokyo, was the first to be licensed to broadcast TV programs and com-menced service in 1953. Subsequently, broadcasting licenses were allotted to prefectures and regions nationwide, resulting in televi-sion and radio stations being opened throughout the country.

As private commercial broadcasters were granted licenses at the regional and prefectural level, it was not possible to create an independent national broadcaster. Powerful Tokyo-based stations became the key broadcasters and they created nationwide networks with local stations. Currently, Japan has some 130 TV stations, most of which are affiliated to one of the top five networks. The licensing system prevented individual companies from developing nationwide as has NHK. Another reason that Japan has been unable to develop large media companies is the practice of not having multiple ownership of media, companies being forbidden to own shares in multiple broadcasters and so not able to control local broadcasters as subsidiaries.