Project Canvas startup to cost £24m
Project Canvas, the joint venture to bring catch-up from the PC to the TV by BBC, ITV and BT, is set to cost £24 million to get up and running.
BBC, ITV and BT hope to provide an open technology service so that viewers with Freesat or Freeview and a broadband connection can access catch-up and on-demand content via their TV, using online services such as BBC iPlayer and ITV Player.
Yesterday, the BBC Trust launched a consultation period into the BBC’s proposals, which aims to be completed by July 24.
The partners plan to launch Canvas on the free-to-air digital terrestrial TV service Freeview and its digital satellite equivalent Freesat early next year, according to reports.
The three companies are also expecting a fourth partner to come on board in the near future, which could include either Channel 4 or Five, or a major internet service provider.
The overall budget for the first five years of the joint venture is estimated to be around £24 million – with the BBC forecasting that its share of this will be £6 million, assuming there are four equal partners.
Next-generation set-top boxes that will be required to access Canvas will cost between £100 and £200, according to the BBC – consumers will also need to have a broadband connection.
Project Canvas is seeking to avoid the fate of Project Kangaroo – the joint video-on-demand venture between BBC Worldwide, ITV and Channel 4 – which was blocked by the Competition Commission earlier this month (see Competition Commission “stops” Kangaroo).
It is understood that the new venture will be clear and transparent about what the service delivers and how it is structured, and will also be open to any broadcaster or content company, such as YouTube.
The partners have also confirmed that they only intend to recoup costs, not make money from the service itself, only from delivering their own content on it.
Project Canvas forms part of the BBC’s strategy to help commercial public service broadcasters through partnerships that involve sharing the corporation’s resources and technical expertise.
Erik Huggers, the BBC’s director of future media and technology, said: “This proposal is founded upon partnership, and comes at a time when commercial public service broadcasters are facing unprecedented challenges.
“While audience demand for high-quality public service broadcasting remains high, the ability of the commercial operators to deliver is seriously threatened by a changing media landscape and the difficult economic climate.
“Innovation is in the BBC’s DNA, and with our funding model and great content, we’re in a unique position to innovate for the benefit of everyone,” he concluded.