WORLD PRESS TRENDS - World Association of Newspapers

JAPAN
Main economic indicators 1995-2001
1995 1996 1997 1998 1999 2000 2001
1 US$= 107.77 Yen at 2001 rate
Gross Domestic Product (Yen billion)
at current prices 497,739 510,802 521,862 515,835 511,837 513,534 503,304
% change 3.9 2.6 2.2 -1.2 -0.8 0.3 -2.0
at 2001 prices 501,721 514,374 516,229 507,164 504,748 509,992 503,304
% change 3.2 2.5 0.4 -1.8 -0.5 1.0 -1.3
Gross Domestic Product per capita (Yen 000)
at current prices 3,967.0 4,061.7 4,139.5 4,080.7 4,041.4 4,047.7 3,952.4
at 2001 prices 3,998.7 4,090.1 4,094.8 4,012.1 3,985.4 4,019.8 3,952.4
Population
Millions 125.5 125.8 126.1 126.4 126.7 126.9 127.3
Consumer Price Index
2001=100 99.2 99.3 101.1 101.7 101.4 100.7 100.0
% change -0.1 0.1 1.8 0.6 -0.3 -0.7 -0.7
Ad.spend as a % of GDP
0.82 0.85 0.87 0.84 0.83 0.89 0.90
Advertising Expenditure Growth (%)
at current prices 5.1 7.1 3.6 -3.9 -2.0 7.7 -1.7
at 2001 prices 5.2 7.0 1.8 -4.5 -1.7 8.4 -1.0
Source: IFS, ZenithOptimedia
Research
Circulation is audited by: Japan Audit Bureau of Circulation
(ABC).
Readership is measured by: NHK Broadcasting Culture Research
Institute and other private companies.
Taxes
VAT on: sales 5% advertising 5%
newsprint 5% plant 5%
composition 5% (standard VAT rate 5%)
Profits are taxed at 30% for all industries.
Are there tax concessions No. The media (including newspapers)
have been subject to the same taxation as most other sectors
since 1998.
Subsidies
Are there subsidies for the purchase of newsprint None, other than
a preferential exemption from import duty on newsprint.
Are there cheap loans for capital investment No, just slightly more
favourable depreciation rules for cars and photographic
machinery.
Discounts
on:
post 78.5% rail 0 telephone 0 telegraph 0 telex 0
Ownership
Does any law exist governing publishing-house ownership, or the
registration of shares in newspaper-publishing companies Yes. The
relevant law is no. 212 of 1951, revised 1966, ‘Ownership of
Stocks and Equity in a Joint-Stock Company and Limited
Liability Company publishing Daily Newspapers’. This allows
publishing companies’ articles of association to a) restrict stock
transfers to parties unrelated to the daily newspaper’s
operations, and b) force a shareholder to divest his shares if he
loses his ties to the newspaper.
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority of
shares, of domestic daily newspapers No
Is there any law prohibiting daily newspaper or periodical publishers
from operating radio or television stations in the same locality There
is an edict from the Ministry of Public Affairs, Home Affairs,
Posts and Telecommunications, ‘Guidelines for establishing a
broadcasting station’, article 9 of which prevents an organisation
controlling more than two stations, and prohibits local
monopolies of the three main media: radio, television and
newspapers. ‘Control’ means either more than 10% of voting
stock in another media company, board representation
exceeding 20%, or a single director on the boards of both the
medium and a commercial broadcasting company. There is no
restriction on ownership of simple broadcast relay stations, and
no restriction when it would clearly be impossible for the
‘controlling’ company to monopolise news and information
distribution activities in the given area. TV stations may own
an AM radio station. Terrestrial broadcasters’ own multiplex
services such as teletext are considered supplementary rather
than mainstream services, so are exempt. Other media owners
may invest in such terrestrial multiplex services subject to the
usual ‘control’ rules, though the investment element of this has
been somewhat relaxed. The abundance of satellite TV capacity
prompted the Ministry to ease the rules in this domain for 10
years effective 1992.
So as to guarantee disclosure and transparency in the capital structure
and to avert silent partnerships, is there a law or rule making it possible
to determine who actually owns a publishing company Some large
companies are required to produce investment reports under a
1992 amendment to the Securities and Investment Act.
Is there an antitrust law limiting concentration in the daily press
None, other than the MPT edict above.
Is further regulation of media concentration expected In February
2003, a study group of the Ministry of Public Management,
Home Affairs, Posts and Telecommunications (MPHPT)
released its final report for reviewing the existing ‘principle of
media ownership rule’. Following the study group’s
recommendations, the Ministry announced that it would ease
regulations by revising the edict that prohibits an organisation
from controlling more than two broadcasting stations, subject
to certain conditions.
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 163