Kangaroo makes changes to win CC approval
Project Kangaroo has offered to scrap plans to jointly sell catch-up and archive programmes to rival broadcasters in a bid to gain approval from the Competition Commission.
In a new submission to the CC, the key players behind the joint broadband TV venture – BBC Worldwide, ITV and Channel 4 – argue that by scrapping plans to jointly sell prime catch-up TV content they have addressed the competition issue put forward by the regulator.
Under the proposal, ITV and Channel 4 would sell their catch-up TV content to third party online video providers – BBC Worldwide does not have catch-up content as it is provided for free via the BBC’s iPlayer service.
The Kangaroo partners hope their new submission will address concerns over the venture dominating the UK online video market, however, if the proposal is not accepted by the CC they have also agreed to scrap plans to jointly sell archive TV programming.
Project Kangaroo has also offered a third option, if the other two fail to appease the CC, which include the partners setting their own prices for retailing shows online directly to customers.
This suggestion would effectively create competition between the partners, argue Kangaroo.
In its provisional report into the joint venture, the CC said the proposed VoD service will “restrict competition” in the UK (see Competition Commission: Kangaroo “will restrict competition”).
The CC concluded that the service “is likely to result in a substantial lessening of competition (SLC) in the supply of UK TV VoD content”.
At the time, chairman of the inquiry Peter Freeman, said: “We are concerned that a loss of rivalry between BBCW, ITV and C4C, who are normally regarded as close competitors, could restrict existing and future competition for VoD. Whatever benefits viewers would gain from this rivalry would clearly be lost.”
The Commission also published a number of possible “remedies” to overcome competition issues, however, Project Kangaroo has rejected other possible ideas suggested by the CC and has warned that the venture will be scrapped altogether if more restrictive measures are imposed.
The CC is expected to publish its final decision early next year.
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