Fuji TV gets OK to be holding firm

Internal Affairs and Communications Minister Hiroya Masuda formally approved a plan Thursday for Fuji Television Network Inc. to become a holding firm on Oct. 1, paving the way for the launch of Japan's first such entity in the broadcasting sector.

Fuji TV, a key private broadcaster, decided to adopt the broadcaster holding company system to enhance the management and financial standing of the Fuji TV group, following the revision of the Broadcast Law, which took effect in April.

The broadcaster holding company system is primarily designed to help local, cash-strapped broadcasters afford the switch to digital broadcasting. The revised law allows TV companies to become a holding firm and put affiliate broadcasters under their umbrellas.