Competition Commission Gets Mixed Views On Kangaroo

The Competition Commission has received mixed submissions to its inquiry into the proposed video-on-demand venture by BBC Worldwide, ITV and Channel 4, Project Kangaroo.

Google has supported the project, saying it does not expect it to have a negative impact on competition or customers, while Joost has complained that Kangaroo’s partners will unfairly benefit from the service.

The Office of Fair Trading (OFT) referred the multi-broadcaster project to the Competition Commission in June, forcing its launch to be put back until next year (see Kangaroo Referred To Competition Commission).

All partners and interested third parties have been invited to submit their views to the Competition Commission so that it can publish a report in the new year.

Google acknowledged that Kangaroo’s suppliers, such as broadcasters and production companies, will overlap with YouTube, as well as advertisers and possible users but said it hopes “that the JV would be willing to partner with us”.

However, Joost argued that the broadcasters will unfairly benefit from the ability to cross-promote the platform and set up bundle advertising deals.

The web TV platform also expressed fears that the combined force of the broadcasters would exacerbate the current challenge of securing web rights for Public Service Broadcasting (PSB) content.

Joost currently carries PSB content in Sweden and the US but has been unable to secure rights to any PSB programming in the UK.

BBC: 020 8743 8000 www.bbc.co.uk ITV: 020 7843 8000 www.itv.com Channel Four: 020 7396 4444 www.channel4.com Google: 020 7031 3000 www.google.co.uk/ Joost: www.joost.com