Five signs up to Project Canvas

Channel Five has signed up to Project Canvas, the joint venture between the BBC, ITV and BT to bring on-demand viewing to digital TV services Freeview and Freesat.

Five, the project’s first new partner, said it sees Canvas as “critical to the long-term future of subscription-free TV,” according to reports.

“Project Canvas is an important step forward because it will extend choice and significantly improve the television experience for viewers,” Dawn Airey, Five’s chief executive, said. “Its widespread adoption is central to driving Digital Britain.”

Project Canvas, which will allow Freesat and Freeview viewers to access broadband TV via a set-top box, is just one of the BBC’s new partnership initiatives, which it has proposed to help bridge the potential £235 million-a-year funding gap for commercial public service broadcasters.

The joint venture is seeking as many as seven new partners in total and hopes to get Channel 4 on board. However, Channel 4 reportedly has concerns over the project’s cash outlay.

Canvas’ overall budget for the first five years is estimated to be £24 million, with the BBC predicting its share of this to be £6 million, on the basis that each of the four partners provides equal funding.

The proposed service is currently being investigated by the BBC Trust following complaints from rival companies, such as BSkyB, which said the venture should be subject to a full assessment by Ofcom.

The media regulator hasn’t ruled out the possibility of scrutinising Canvas and has warned that it could face a competition investigation, similar to that of Project Kangaroo, which was subsequently blocked by the Competition Commission.