TOKYO -- The impact of Fuji Television Network Inc.'s loss of advertisers over a scandal between a woman and former TV personality Masahiro Nakai has spread to domestic business partners of parent company Fuji Media Holdings Corp.'s (Fuji Media HD) group companies.

The scandal has disrupted TV program production, and some of Fuji Media HD group firms' partners could face bankruptcy if the issue persists. According to Tokyo Shoko Research Ltd., Fuji Media HD's 25 group companies have 9,654 first- and second-tier partners. The largest segment, comprising 2,571 businesses, operates in the service sector, such as advertising agencies and talent agencies, while others are involved in TV program production, wholesale of electrical machinery, manufacturing, and communications.

Fuji Media HD's diversified business portfolio, which extends beyond media and content into areas like real estate and tourism, has amplified the ripple effects. While most of its business partners -- 5,273 companies -- are based in Tokyo, others are spread across all 47 of Japan's prefectures .

A Tokyo Shoko Research representative said, "Many of Fuji's business partners are small-scale enterprises, and delays in restoring trust could lead to bankruptcies or closures." They added, "Talent agencies, in particular, were already struggling with challenges such as reduced work during the COVID-19 pandemic, budget cuts in TV production due to the diversification of media, and declining appearance fees for celebrities, leading to growing numbers of bankruptcies and closures. This scandal could further exacerbate those difficulties."

(Japanese original by Yuki Machino, Business News Department)