Full Circle to TV: Challenges and Future Visions at the Forefront of Video Viewing

The statistical and explanatory book covering the media industry , "Information Media White Paper" (edited by DENTSU SOKEN INC. Media Innovation Research Department, published by Diamond Inc.), has been released again this year. The opening feature includes an essay by Mr. Ritsuya Oku, Head of the Media Innovation Lab at DENTSU SOKEN INC. and a member of the Ministry of Internal Affairs and Communications' "Study Group on Issues Surrounding Broadcasting," titled "Considering the Future of Video Business from the Perspective of 'The TV Cycle.'"

It examines the changes facing television, which led 20th-century media business, and how it is transforming. Drawing on his analysis through the lenses of business, audience, and technology, and citing real-world examples, he proposes that media evolution should be understood as a spiral structure.

Building on this content, we exchanged views with Mikio Tsukamoto, a part-time lecturer in media studies at the University of Tsukuba and Media Strategist and Representative Director of Wise Media, whose mission is to "support the future of television." Tsukamoto previously served as Chief External Affairs Officer in Fuji Television's Broadcasting Planning Department.

Oku: Mr. Tsukamoto, you have extensive experience working on the front lines of television business at broadcasters, plus a background in online video ventures. You also closely monitor international broadcasting culture and technology.

Tsukamoto: I joined Fuji TV in 1981, so I'm roughly the same generation as you. While we've faced some challenges recently, back then Fuji had just emerged from a long slump and reached the top, leading the television industry.

Early in my career, I worked as an assistant on variety shows. Later, I became a news reporter, then editor-in-chief of a news program. From 2005, I worked in the digital content division, focusing on collaboration between broadcasting and telecommunications. Finally, intending to contribute to the company once more, I left the digital division. While handling external affairs related to broadcasting regulations, I reported on "how to shape the new era of broadcasting through institutional frameworks."

At the same time, I took pride in being a "lifelong television professional." I began wondering if I could work not just for Fuji TV, but for the future of the entire broadcasting industry. With media consulting as my business objective, I launched a company called Wise Media last July. Television is now in a period of upheaval, and we're seeing strong interest from local stations and internet companies looking to engage with broadcasters.

Oku: The 'Information Media White Paper 2017' provides an overview of the era's flow through a timeline, from the invention of film to the advent of television, and the impact of the internet and the diversification of video content.

What this reveals is how dramatically the pace of change has accelerated. To put it somewhat simply, it seems that the same level of transformation embodied by film and television throughout the 20th century has now rapidly impacted our information environment since the start of the 21st century.

Tsukamoto: Speaking of the flow of time, this year marks exactly 10 years since the iPhone was announced. In these 10 years, smartphones have become completely commonplace. At the same time, PCs have receded into the background. Thinking about that, it's possible that in another 10 years, some new technology replacing smartphones will permeate our lives. I'm actually watching this with excitement, wondering how video content will adapt to that.

Oku: At that point, the "content" encompassed by terms like video or film will likely fall into two categories: professional productions created for entertainment, and user-generated content shot and edited with smartphone cameras, serving as material for communication. How do you think this will evolve?

Tsukamoto: I don't believe there will be cannibalization. The fundamental premise is that the value each provides is different. However, the current reality is that the boundaries feel blurred, likely because the means of sharing online have become simpler and more diverse.

Oku: Within those two modes, the former has the traditional advertising and promotion model of inserting spot or time-based commercials into gaps in entertainment-based videos. Meanwhile, within the latter type of communication-based videos, opportunities for advertising and promotion are likely emerging going forward.

 

Tsukamoto: A related example is the "Dead Yourself" app created by the production company behind the American TV show "The Walking Dead." It takes a photo and transforms an ordinary person's face into a zombie, then lets you easily share it on social media. What used to require significant time and effort can now be done entirely within a smartphone.

And this kind of fun, communication-based interaction creates a sense of participation, fosters attachment to the content, and leads to new awareness through sharing. It truly functions as advertising and promotion.

Oku: Regarding the two modes we just outlined, do you have any insights from your position interacting with university students?

Tsukamoto: A fundamental change might be that young people not only don't watch TV, but they don't even own one. I feel this keenly.

I think of this phenomenon by analogy with breakfast. For people who eat breakfast, a rice cooker and toaster are essential items. That's the hardware equivalent of a TV. Then, things like rice, bread, or side dishes are what we call programs or content, and if they aren't tasty, people won't choose them. However, a significant number of young people these days don't eat breakfast at all. Since they don't have the hardware, naturally, they have nothing to choose from at the supermarket.

Personally, I want people to "eat breakfast." I believe TV stations, which bear the responsibility of providing wholesome entertainment and are legally mandated, should see to it that content is properly delivered. If that can't be done via the technical means of broadcast radio waves, delivering it via the internet is one option. Even if the profit margin gets a bit worse, it's an investment in the future, so I think it should be done as a service.

 

Oku: In the opening feature of the 'Information Media White Paper 2017' I mentioned earlier, we compiled an essay titled "Back to TV After a Full Circle." Its central theme is this: while smartphones have made it possible to watch various videos in diverse places and situations, ultimately, the living room with its large-screen TV remains the optimal viewing environment. It's where people can lean back and relax the most. Consequently, users may rediscover and choose to watch there again.

Given that the now diverse array of video services must also consider the possibility of being watched on TV within this context, we hypothesize that the forefront of video viewing will come full circle back to television. This argument aligns with our stance that it's crucial to reassess the information environment and usage scenarios surrounding media from the user's perspective, rather than being swayed by changes in devices.

Tsukamoto: Looking at the US, perhaps due to national character, there's a persistent demand to watch content on large TV screens rather than small smartphone displays. I often visit CES (the US consumer electronics and IT trade show) for observation, and I see various possibilities being pursued for future development, such as digital signage and smart glasses.

However, from a broadcaster's perspective, I believe we must experiment with every conceivable form of content deployed there, or we likely won't have a future. Television is one such medium, and I believe its value should be further pursued going forward.

Having experienced television production firsthand, I feel that for both variety shows and news, the sense of live immediacy within constraints is the lifeline. In the TV industry, it's often said that the "se" in "seisaku" (production) stands for "se" (constraint).

Oku: That's right. And the recent trend is that video services emphasizing this live quality are emerging online.

Tsukamoto: Considering these movements, I think if we could express that live quality—which was the essence of television—directly in the online world, it could actually become an opportunity.

Oku: Related to that direction, I noticed in our department's recent "Japanese Advertising Expenditures 2017" report that radio spending increased by 2.5% year-on-year. I believe this reflects the effectiveness of making radio accessible on smartphones – in other words, placing radio content online. This data underscores the importance of placing content where it's visible.

Tsukamoto: It's a prime example of how, if we prepare content aligned with the lifestyle patterns of internet-savvy young people, they will properly engage with it. The hot topic in the industry right now, simultaneous online streaming, ultimately boils down to simply increasing viewing opportunities. To make this a reality, I believe we need institutional frameworks that treat simultaneous online streaming of broadcasts as equivalent to traditional broadcasting.

Broadcasting is fundamentally regionally licensed, so for simultaneous online streaming, we should use regional controls to align distribution areas and maintain broadcast timing. By doing this, we can help stakeholders understand it as a complementary service to broadcasting. I believe rights holders and advertisers would also come to understand this.

I have high hopes for my wife, who is a member of the Ministry of Internal Affairs and Communications' review panel. I also believe NHK should take the lead for the entire broadcasting industry, including commercial broadcasters. Furthermore, I'd like to request that stakeholders develop metrics beyond the current household ratings-based system.

Okuda: I completely agree. As a new axis for the internet era, it would be ideal to create another value axis that incorporates new viewing environments and behaviors, combining it with the traditional one to form a comprehensive whole. As touched upon in the "Back to TV" discussion, diversifying criteria directly leads to diversifying content and increases the potential for enhancing user benefits.

Tsukamoto: I certainly hope so. Right now, Japanese TV stations are struggling just to maintain their current level of viewership. But going forward, they also need to expand their reach. It's crucial to do both, not just one or the other.

Oku: Regarding the analogy you mentioned earlier, how do you think we should convey the importance and deliciousness of breakfast to people who don't eat it?

Tsukamoto: I imagine some parents say, "You don't have to eat breakfast, but please get your nutrients in the morning." It's like saying, "You don't have to watch TV, but please engage with content. Doing so will open up a richer life for you."

Rather than dictating how they engage with video content, we should carefully observe young people's behaviors and position ourselves ahead of time, preparing like a marathon runner handing out water. The first step is to integrate content into their daily lives.

Oku: Indeed, creating an environment where content exists within the audience's reach is crucial. I feel the need for television to actively engage with young people is growing ever more important. In other words, this era of media diversification signals the arrival of a time when we must think more deeply about our audience.

Today's discussion has helped us identify key points to keep in mind and areas we need to address moving forward. Thank you very much.