In accordance with the convergence of broadcasting and telecommunications, media are becoming increasingly diversified and public broadcasting all over the world face new challenges. In cope with this, BBC in UK and RTE in Ireland, for instance, analyse their values as a public broadcasting and whether current fees are appropriate from the viewers' perspective in order to determine future strategies as a public broadcasting. This paper analyses the value of Japanese public broadcasting NHK (Nippon Hoso Kyokai) by conducting questionnaire surveys in April 2006, which interviewed among 3,600 men and women aged 16 and over throughout Japan, selected by stratified two-stage random sampling, and 2,018 valid replies were obtained. Questionnaires were based on the three-stage double bound model. According to our estimation, respondents were willing to pay 1,780 yen (approximately US$ 15.50) monthly per viewer for terrestrial services (NHK General, Educational, Radio 1, Radio 2, FM) and 1,245 yen (about US$ 10.83) monthly per viewer for satellite services (BS-1, BS-2, Hi-vision). These amounts are higher than current viewing fees (1,395 yen monthly for a colour TV contract, plus an additional 945 yen monthly for colour satellite broadcasts). Based on WTP of each respondent, we attempt to extract factors which affect their values by fully using econometric method. Since there are so many factors which affect WTP, in order to simplify the analysis, we divide them into three categories: (i) respondent characteristics; (ii) viewers' satisfaction with NHK's "Promises" to restore viewers' trust; and (iii) public value of NHK. At first, the relationship between respondents' characteristics and their WTP is examined. As characteristics, (i) age, (ii) occupation, (iii) number of family; (iv) income, and (v) regions and cities where they reside. For the actual estimation, two models are estimated: (i) full model and (ii) selected model. The results of estimation show that two models have the almost same significant variables. Variables which affect strongly WTP are such as "age," "satisfaction with NHK's program," and residents of "cities with 100-300 thousand population" (1% level). "Manager, professional occupations," "income," and "cities with less than 100 thousand population" are significant at the 5% level. "Cities with more than 300 thousand population" is at the 10% level. "Viewing hours," on the other hand, does not affect their WTP, but "satisfaction with NHK's program" does WTP. In accordance with consecutive improprieties, NHK announced "Promise" in order to restore its confidence. We asked how much viewers are satisfied with NHK's efforts to fulfil the duties. "Promises" consist of six main promises and nine subsidiary items, and we take reviewers' satisfaction with these promises as variables. In these estimations, few variables are extracted as significant, namely "creates better programs consistent with receiving fees paid" (1% level) in the full model, in addition to this, "establishes strong relationship with viewers and reflects their opinions in our operation" (5% level) and "broadcasts program contributing the benefit of local society" (10% level) are found to be significant in the selected model. One way to restore viewers' confidence is to broadcast high quality programs. The last analysis is aimed to clarify NHK's positioning as a medium and serve as an important element when considering NHK as a public broadcaster. NHK's public nature was broken down into nineteen categories and viewers' expectations of and satisfactions with NHK were questioned The estimation in the selected model extracts the following three factors have positive relationship with WTP, namely, "Takes up broad issues from the through Japanese society and provides information that people can share and discuss," "Passes on Japanese traditions and culture to the younger generations in audio and video format," and "Products programs that are not influenced by advertisers or sponsors".
