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Big ad boom seen for Japanese TV by 2005

TOKYO — Japan’s market for television advertising is expected to grow by 50% in 2005, as compared with 1995, with cable TV and direct satellite broadcasting leading the charge, according to a report from a confederation of Japan’s TV networks.

The National Assn. of Commercial Broadcasters of Japan (NAB) said revenue in the TV ad market will be 2.6 trillion yen ($23 billion) in 2005 as compared with 1.75 trillion yen ($15.4 billion) in 1995.

In its 2005 Broadcasting Vision report, NAB said that over the next 10 years, the networks should have a diminished control over advertising revenue. By 2005, the networks’ piece of the overall television advertising pie should be between 75% and 85% of the share they had in 1995.

The report also said the increasing number of channels will cut into the amount of time viewers spend watching network TV. While the average amount of time spent watching TV is not likely to change by 2005, networks will be attracting about 60% of the viewing audience. At present, Japan’s TV viewers almost exclusively watch Japan’s five TV networks.

The report said a growth area in the future will be electronic program guides.

The amount spent on advertising in Japan hit a record yearly high in 1996 to tally $47.7 billion. Revenue from TV ads led the way while cable TV posted a double-digit growth from the year before, Japan’s leading advertising agency, Dentsu Inc., reported.

In 1996, TV ad expenditures totaled $17 billion, which marked a 9.2% increase from 1995. Cable TV and direct satellite broadcasts posted a 10.1% increase in 1996 to finish at $154 million, Dentsu said.

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