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NSK News Bulletin Online
Ju
ly 2002
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*Gross Newspaper Earnings Drop on Weak Ad Sales
*Newspaper Copyright Council Created
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*Topics
--Okinawa Times Launches Electronic Overseas Edition
--Ise Shimbun Sets Up Readers¡ÇForum
--Japan¡Çs First E-voting in Niimi City, Okayama
--Free Daily Tabloid Debuts Tokyo
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Story of the Month>>>
The First World Cup boosts circulations of Japan's sports dailies
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Gross Newspaper Earnings Drop on Weak Ad Sales

NSK has announced that the overall earnings of Japanese newspaper companies in 2001 totaled 2.490 trillion yen. That figure represents sales estimates received from 98 NSK-member publishers of daily newspapers, including sports dailies. The total estimate is down 1.3 percent year-on-year in what would be the first decrease in two years. With circulation revenues marginally up, advertising revenues fell hard enough to drag down the entire sector.

NSK¡Çs annual survey is based on the earnings estimates of each member company, derived from company financial statements. For companies that did not make their financial reports available, earnings projections were extrapolated from other companies of similar size and scale. Gross earnings figures comprise circulation revenues, advertising sales, non-operating income, special profits and all other income, including operating income from activities such as publishing, printing on assignment and special projects. Gross earnings are generally equivalent to total income for each newspaper company.

By revenue source, circulation revenues increased 0.1 percent year-on-year in 2001 to 1.284.7 trillion yen, in the first rise in three years. But advertising revenues plunged 3.2 percent in the same period to 872.5 billion yen in the first year-on-year drop in two years. The ¡Èother income¡É component also fell, declining 1.4 percent to 332.8 billion yen, in its first decline in six years.

As a result, the proportion of gross earnings originating from circulation grew 0.7 percentage points to 51.6 percent, while advertising feel by 0.7 percentage points to 35.0 percent.

<Reference>
Financial Affairs Newspaper Revenue


Newspaper Copyright Council Created

Sixty NSK newspaper companies and news agencies met in Tokyo on June 14 to create the Japan Newspaper Copyright Council, a body to administer the copyrights on newspapers. The founding members met at the Nippon Press Center Building to set the terms and operating rules for the new organization and to appoint its first directors. They elected the Mainichi Shimbun Senior Executive Director Katsumi Ishiguro as the council¡Çs first president.

The member companies empowered the copyright council to handle all requests for reproductions of up to 20 copies of any newspaper page. That copy limit has existed for some time at the Japan Reprographic Rights Center, or JRRC, a broader organization established in September 1991 to protect the rights to reproduction of any materials published by its member companies.

The newly formed Japan Newspaper Copyright Council is to protect copyrights by managing and controlling rights related to the reproduction of newspaper contents. It is also to coordinate its activities with the JRRC. The council will simultaneously work to raise awareness and understanding of the concept of copyright protection. Among its more routine jobs, the council will handle the re-entrusting to the JRRC of rights to reproduction belonging to member companies, as well as the distribution of fees collected by the JRRC to member newspaper companies and news agencies.

Each member company is to receive fees that the JRRC collects from registered users. The copyright council¡Çs board of directors is to propose rules for distributing the fees that must be approved at a general meeting by March in 2004, when the first revenues from reproduction permissions are due to start coming in.

The council will also collect fees from its own member companies whenever they wish to copy newspaper pages or magazines issued by other members. Such fees are to be transferred to the JRRC in a lump-sum payment. A sum not exceeding 30 percent of the total reproduction-permission fees that the council gets from the JRRC is to be used to cover the administrative and operating costs of the council. There is no membership fee.

For the time being, the secretariat of the council is to be located at the Tokyo head office of the Mainichi Shimbun.

Some major newspaper companies, including the Nihon Keizai Shimbun and the Hokkaido Shimbun have not joined the newspaper copyright council. The Nihon Keizai has been promoting its own copyright-management scheme.

The Japan Reprographic Rights Center was established to act on behalf of the holders of copyrights and to collect fees from corporate users seeking low-volume reproductions of copies of copyrighted publications. The Education Ministry officially recognized the JRRC as a corporate judicial entity in 1998. The JRRC membership includes the Federation of Copyright Holders¡Ç Associations, the Academic Copyright Council and the Publishing Copyright Council. The Japan Newspaper Copyright Council will now become the fourth official member. The JRRC serves an estimated 3,300 corporate clients.

Topics.......Topics.......Topics........

Okinawa Times Launches Electronic Overseas Edition

The Okinawa Times co. on June 1 began delivery of an overseas electronic edition, using a system developed by Newspaper Direct Co. of Canada. The Okinawa Times is the third Japanese newspaper to use the Canadian company¡Çs electronic newspaper-delivery system.

The paper is one of the 122 newspapers in 37 countries now using the system. Participating publishers prepare PDF (portable document format) files of their page contents and transmit those files to the Canadian company¡Çs server via the Internet. Readers then obtain A3-size printouts of those files from the company¡Çs ¡ÈPrint Stations¡É -- the same place where they apply for subscriptions.

Newspaper Direct began operations in 1999. It now has Print Stations at 300 locations in 30 countries, mostly in major hotels, universities and government offices. As of mid-July, the Okinawa Times will open a Print Station at its head office in Okinawa, as well as at its Tokyo branch office.

Okinawa Times co. is based in Naha City, Okinawa Prefecture, where it publishes daily newspapers as a set of morning and evening editions with a circulation of about 200,000.


Ise Shimbun Sets Up Readers¡ÇForum

The Ise Shimbun, the publisher of a regional newspaper in Mie Prefecture, on June 20 held its first readers forum, aimed at giving readers a chance to see their opinions appear in the newspapers¡Ç pages.

Twenty long-term subscribers were invited from among readers in the cities of Tsu, Ise, Matsuzaka, Yokkaichi and Iga to sit as members of the forum, which is to meet four times a year.

To promote interchange with long-term subscribers, the newspaper is encouraging the forum members to express their candid opinions about the contents of the newspaper to help deepen its roots in local communities. Forum members are invited to serve for a one-year term, but can be invited to stay longer.

The Ise Shimbun is based in Tsu City, Mie Prefecture, where it publishes daily morning newspaper with a circulation of about 100,000.


Japan¡Çs First E-voting in Niimi City, Okayama

Japan¡Çs has had its first experience with electronic voting on June 23 in the mayoral and city assembly elections in Niimi, Okayama Prefecture. The system allowed vote-counting to be completed on the same day, drastically cutting the time needed for the process.

All the ballots that were cast electronically were counted in a mere 22 minutes, and the final result, including absentee ballots, was ready within two hours. The former manual system had generally taken three to four hours to produce a result.

The Feb. 1 enactment of a special law on electronic balloting opened the door to e-voting for local elections.

The voter turnout in Niimi City, was 86.82 percent of the 19,381 eligible voters for the mayoral election and 86.83 percent for the city assembly vote. Voters picked candidates at 43 polling stations from 7:00 A.M. till 8:00 P.M., using voting machines operated by touch-sensitive panels.

As soon as the voting ended, electronic memory cards containing a record of the number of votes cast for each candidate were taken to counting centers for immediate computer-based counting.

The NSK Editorial Affairs Committee has long called for the outcomes of elections -- the backbone of democracy -- to be made available to the public as swiftly as possible. The committee has also urged the central and local governments to complete the vote-counting on the day of the election by speeding up the process. If the results of vote counting are delivered to media organizations via the Internet, the reporting of election-related news will also become available to the public much more quickly.

Hiroshima City in Hiroshima Prefecture and Shiroishi City in Miyagi Prefecture are the latest communities to say that they are planning to institute e-voting, effective next year.


Free Daily Tabloid Debuts Tokyo

The pilot edition of the free daily newspaper HEADLINE TODAY went into test circulation in Tokyo and surrounding areas on June 1. The first regular issue was set to be distributed on June 15 in and around main railway stations.

The tabloid¡Çs publisher, Headline, is located in Minato Ward, Tokyo. Headline President Kiyoharu Nakayama leads the local operations of the wholly owned subsidiary of the British investment firm Media Venture Capital Limited. Headline¡Çs Tokyo office was established in April to issue the free daily.

The tabloid-size newspaper has 24 pages, eight of which are color. Its target readership comprises people in their late teens to 30s who generally dislike mainstream newspapers. The distribution is to run about 300,000 copies, from Monday through Friday mornings. Copies of the free paper will be stacked on dedicated open racks near stations on the JR, private and subway lines at the same time as most general newspapers go on sale.

HEADLINE TODAY carries sports, music and city news provided by Reuters and Bloomberg, in addition to its own original articles. It also features daily radio and TV listings.

The paper¡Çs ad content is drawn mostly from eating-and-drinking establishments, automakers, entertainment companies and mail-order businesses. The ads generally carry Web-site addresses and other contact information for sponsors, in an apparent bid to link the print edition to the Internet and mobile phones.

HEADLINE TODAY is said to be the first Japanese-language paper to operate along the lines of the successful European free dailies of the ¡ÈMETRO¡É genre. There is already considerable interest in whether this kind of publication will be accepted by Japanese readers. Publishers of conventional newspapers are closely watching the paper¡Çs introduction.


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Story of the month>>>>

The First World Cup boosts circulations of Japan's sports dailies
July 1 front pages of major sports dailies reporting the World Cup final between Germany and Brazil

(Photos from above¡Ë
Sankei Sports
Hochi Shimbun
Nikkan Sports
Sports Nippon
Tokyo Chunichi Sports
Daily Sports

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Japanese sports dailies were operating at full tilt during the 2002 FIFA World Cup finals running through June. These unique dailies succeeded in greatly boosting their circulation by providing exceptionally detailed reporting of all World Cup news and issuing extras whenever Japan¡Çs team played.

According to an NSK survey in October 2001, the combined circulation of Japan¡Çs sports dailies came to about 6.12 million, representing 11.4 percent of total newspaper circulation. The sports dailies are all issued either by publishers of general newspapers or by affiliated companies. Of NSK¡Çs 112 member companies, 11 publish sports dailies.

Despite being dubbed sports dailies, the papers do carry articles on non-sports news as well. They cover criminal cases, as well as providing simplified coverage of political and economic news from perspectives that vary from those of general newspapers -- sometimes in a manner tending to provoke scandal. In addition to their reporting on baseball, soccer, sumo and other sports, these dailies also deal with the private lives of athletes, as well as offering more specialized coverage of horse racing and boat racing. Fishing information is also a popular standard theme. To round out their pages, they also touch on show business, travel and leisure, movies, music, events and entertainment.

The front pages of sports dailies are easy to spot by their oversize pictures and their giant headlines in red, blue or yellow. Some sports dailies claim that as much as 20 percent of their readers are women, but in general, most readers are middle-aged or elderly men. The circulation of sports dailies normally rises in parallel with the main competitions in professional baseball and when sumo tournaments heat up.

But in recent years, the popularity of professional baseball and sumo has been ebbing, stalling circulation growth. The sports dailies were therefore looking forward to the big boost in circulation from soccer¡Çs World Cup being co-hosted by Japan.

Average page counts range from 26 to 36 among the sports dailies. Some run pictures of nude young women or sex-industry information on their inside pages. Some foreign visitors have expressed astonishment at the sight of male Japanese office workers in business suits openly reading newspapers decorated with pictures of nude women on crowded commuter trains. They can thank the sports dailies for that surprising scene.

Japanese sports dailies also stand out in terms of their revenue base. One main reason for Japan¡Çs extraordinarily high circulation rates for general newspapers (more than 50 million copies -- more than 70 million if evening editions are counted) is a long-standing tradition of door-to-door delivery. Mornings and evenings across Japan, about 22,000 newspaper sales offices are delivering newspapers directly to subscribers. Door-to-door delivery accounts for as much as 99 percent of the circulation for some general newspapers. By contrast, sports dailies sell from 13 to 35 percent of their papers at kiosks in railway stations or through convenience stores. Those copies of the sports dailies that do circulate through door-to-door delivery do not feature nude women -- publishers remove those pages especially for home delivery.

Most of the sports dailies were founded after World War II . In Japan, there is no obvious distinction between so-called quality newspapers and tabloids. But the role that is played by tabloids elsewhere could be said to be filled here by the sports dailies.

¡¡

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