BBC, ITV and C4 web venture blocked

Posted on 3 Dec 2008 at 16:10

A joint online venture between the BBC, ITV and Channel 4 could fall through after the Competition Commission (CC) said the move would restrict competition.

'Project Kangaroo' was intended to allow viewers to watch UK TV programmes online as part of one single package, but the CC has now provisionally ruled that it be blocked.

The majority of programmes were due to be offered for free, but customers would also be charged for some content.

"The CC has concluded that the joint venture is likely to result in a substantial lessening of competition in the supply of UK TV video on demand content at the wholesale and retail levels," it said in a statement.

The CC said it will look into how to best address the loss of competition and the adverse effects for viewers, and pledged to make a final decision by February 8th 2009.

"We are concerned that a loss of rivalry between BBC Worldwide, ITV and C4, who are normally regarded as close competitors, could restrict existing and future competition for Video on Demand," said Peter Freeman, competition commission chairman.

"Whatever benefits viewers would gain from this rivalry would clearly be lost."

The three broadcast companies said in a joint statement they welcomed the CC's comments that the service had much to offer, but vowed to continue making the case for the venture.

Author: Dawinderpal Sahota

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