Hisashi Hieda

April 2008

Next year, Fuji Television Network celebrates its 50th anniversary of broadcasting in Japan. Over the years, the terrestrial broadcaster has become the country’s leading commercial network with a mix of drama, variety, sports, news and infotainment. Fuji has also launched two communications-satellite (CS) services and has become a leading producer of feature films and events, among them Cirque du Soleil’s Dralion. It also has a strong DVD business in Japan and has emerged as a significant supplier of anime, drama and, increasingly, variety formats, to broadcasters worldwide. Hisashi Hieda, Fuji Television’s chairman and CEO, speaks to TV Asia Pacific about maintaining the group’s leadership position.

TV ASIA PACIFIC: What were some of the highlights for the company last year?

HIEDA: In 2007, Fuji Television achieved the top position in ratings as well as sales among all commercial broadcasters. We enjoyed a successful year with our feature films as well. The film Hero became the top-grossing Japanese live-action film of 2007, pulling in 8.1 billion yen ($80.5 million) at the domestic box office. As for events, Dralion continues to gather huge crowds. Our rights-related businesses, including the sales of DVDs and other goods, are in good condition, greatly contributing to the increase in sales in our nonadvertising businesses.

Another noteworthy accomplishment in September 2007 was the completion of our new studio facility, Wangan Studio, equipped with cutting-edge digital technology.

TV ASIA PACIFIC: How has Fuji been able to maintain its position as the leading commercial broadcaster?

HIEDA: [As] we have put together sophisticated production skills, and effectively scheduled and provided quality content, Fuji Television was successful in winning the trust of viewers and advertisers. As a result, an overwhelming amount of advertising [money] was spent, helping us produce high-quality content.

TV ASIA PACIFIC: What is the state of the Japanese TV ad market today?

HIEDA: Currently, Japan’s total advertising expenditures reach 6 trillion yen ($59.7 billion). Of that, television ads amount to 2 trillion yen ($19.9 billion). There’s been a slight increase over the past few years. The amount of ads aimed at Internet sites has grown drastically, but the advertising pie remains about the same. [Investments] on newspapers and magazines are now shifting to Internet sites. Of the 2 trillion yen in advertising expenditures [spent on] 127 Japanese broadcasters (including independent UHF stations), Fuji Tele-vision’s broadcasting revenue amounts to approximately 295 billion yen ($2.9 billion), making up about 14.7 percent. This sales figure puts us at the top of all commercial broadcasters as well as commercial fees and relationships with sponsors.

Rather than just focusing on the sales of commercials, we make a more thorough proposal to our sponsors, including collaborations with Fuji Television events, movies and other businesses. This approach has been highly valued by Nissan, Coca-Cola, Toshiba and other major corporations.

TV ASIA PACIFIC: How important have your drama productions been for the overall schedule?

HIEDA: I can proudly say that Fuji Television’s skills in planning and producing dramas are number one among all video content producers in Japan. The number one in-house-produced film of 2007, Hero, started out as a hit television drama series on our network, and the entire cast and crew from the TV series participated in the production of the film version. Even during the production stage, we keep in mind that DVDs of that drama will be released or be put to use in another me-dium. What’s more, by staying abreast of the ever-changing potential desires of our viewers and [incorporating] them into dramas, Fuji Television has continued to create social trends. This also helped boost our corporate image.

We are also Japan’s premiere film-production studio. Eventually, we can bring our feature films back on our airwaves and diversify our programming content. This also contributes to [cost efficiencies].

TV ASIA PACIFIC: What role do news and documentaries play for Fuji TV?

HIEDA: In order to carry out our public mission as a broadcaster, it is obvious that we must first function as a sound news organization. Producing and airing quality news and documentary programs will help us gain trust and establish our position as an essential broadcaster that acts as the backbone of various content. On our [schedule], live content and live programs are positioned not only during golden time [prime time] but in every essential time slot. This enables us to adapt to modern society, where valuable information is being transmitted constantly.

TV ASIA PACIFIC: The channel has become well known for its entertainment and variety programs.

HIEDA: Since it is still a deep-rooted custom for viewers to enjoy music and variety programs on television, Fuji Television is highly praised by our viewers for providing just what they need. Compared to other content producers, the production personnel of our entertainment programs are very young and authorized to make big decisions. This leads to the production of programs that respond to the times. As a result, advertisers value us as a broadcaster that’s supported by the younger generation, a group that [is a main target for advertisers].

TV ASIA PACIFIC: Some of your entertainment shows are being sold internationally as formats. Why do you think these can translate well worldwide?

HIEDA: It’s simply because entertaining content is entertaining no matter who watches it. Because of language and culture barriers, not all content may be appropriate for format sales. But by selecting and actively promoting programs that can overcome these barriers, such as shows that require strength and agility, we were able to successfully export game formats. That’s why it’s difficult to say that domestically popular content can automatically be developed overseas as formats. Format sales are still in the early stage of business development, so we are eager to undertake the planning, development and sales of formats even further.

TV ASIA PACIFIC: How much of your content are you producing in high definition?

HIEDA: As of January 2008, during golden time, more than 90 percent of our programs are produced in high-definition. As for the entire day, it’s nearly 90 percent. We plan to continue increasing the number of programs produced in high definition and actively review how content should correspond to the spread of wide-screen, high-quality monitors.

TV ASIA PACIFIC: Given how much you produce locally, how important are acquisitions and co-productions for Fuji TV?

HIEDA: We have actively acquired international programs that are good in quality and those we judge will be well received by Japanese viewers. Some include the Korean dramas Stairway to Heaven and Jumong and the American drama 24. In the future, we will continue to search for programs that we feel match the needs of Japanese viewers.

In the past, we have co-produced dramas with broadcasters in Korea and China. We are currently cooperating with the Korean broadcaster MBC, who we have a friendly relationship with, in the production of dramas and documentaries. We don’t want to be caught up in the frame of “co-production.” What’s most important is to produce programs that are entertaining and high in quality. If co-production is the appropriate approach of realizing that, then we will do so. This should always be our stance. So if a certain plan works well if it’s co-produced and would become good content, then we won’t hesitate to take part in co-productions.

TV ASIA PACIFIC: How are you positioning your CS services?

HIEDA: Taking advantage of our ability to produce programs from various genres, Fuji Television is involved in the entire programming of its premium CS channels. As for each individual program, we take great pride in providing quality programs more than any other specialized channel, and we have confidence in fully satisfying the needs of viewers that have deep knowledge of a particular genre.

For example, all Formula 1 races, including the Saturday practice and qualifying, as well as Sunday’s race, will be covered live. All professional baseball games hosted by the Tokyo Yakult Swallows are also covered live. The rest of our regular programming schedule includes originally produced variety programs and rock concerts that are popular among teenagers.

TV ASIA PACIFIC: What are your goals for Fuji Television this year?

HIEDA: I am pleased to say that Fuji Television achieved the top position in all three viewer-rating categories for four consecutive years. In terms of sales, we’ve maintained the top position for over 20 years. We will no doubt continue to go for number one both in viewer ratings and sales, but at the same time, it’s also our goal to remain the leading company in this industry and always stay one step ahead of the changing times. Last year, we started operating Wangan Studio, an eco-friendly world-class studio facility equipped with the latest technology. We are determined to further enhance what we call our Digital Content Factory, and continue to devote ourselves to the production of high-quality content.

TV ASIA PACIFIC: MIPTV has recognized Japan as its country of honor this year. What can the international market learn from the Japanese TV industry?

HIEDA: If there’s something superior about Japanese television programs, it’s because broadcasters have been involved in intense competition through a coherent business scheme in which a single broadcaster is responsible, from planning, production, programming, to transmission. Amid that competition, we have always given our attention to our viewers and kept in mind that broadcasters must serve as a “public organ.” That’s why we were able to keep producing content that maintains a good balance between “highly entertaining” and “high quality.”