The character, if you don't already recognize it, is Domo-kun. Domo-kun is a character from a children's TV show, but is also the acting mascot for NHK's satellite broadcasting system (BS).
Japan has not made the switch to digital broadcasting yet, so in July of 2011 they will be converting entirely to digital. The US made the transition a couple years back, so it's not all that dissimilar. We too had months of warning ahead of time, but mostly via nightly local news.
Still, I can't help but laugh every time one of these commercials pops on for a few seconds. I guess it's kind of difficult to rewire the brain to thinking BS stands for broadcasting system.