Arqiva set to buy Kangaroo technology
Arqiva is understood to be in discussions to buy the technology behind Project Kangaroo, the failed broadband TV venture between BBC Worldwide, Channel 4 and ITV.
The broadcast transmission company was up against Orange as the only serious contenders to buy the technology, however, Orange pulled out of the process in May.
As a result, talks with Arqiva are thought to have developed to an advanced stage, though neither party has signed the deal as yet, according to reports.
Project Kangaroo, which was stopped by the Competition Commission in February (see Competition Commission “stops” Kangaroo) costs its partners in excess of £30 million. However, the remaining assets are likely to be sold for a fraction of the amount.
BBC Worldwide, Channel 4 and ITV have been looking to offload the assets, primarily the technology behind the video-on-demand service, since the project was blocked for being a threat to the UK broadband TV market.
At the time, Peter Freeman, chairman of the Competition Commission, said: “After detailed and careful consideration, we have decided that this joint venture would be too much of a threat to competition in this developing market and has to be stopped.”
The main problem with Kangaroo was the control of valuable UK-originated TV content, according to the Commission.
“BBC Worldwide, ITV and Channel 4 together control the vast majority of this material, which puts them in a very strong position as wholesalers of TV content to restrict competition from other current and future providers of video-on-demand services to UK viewers,” Freeman added.
Since then, NBC Universal and News Corp’s US online TV platform Hulu has confirmed plans to launch in the UK (see Hulu’s UK launch is company’s “number one priority”).
Speaking at a conference in London recently, Hulu’s SVP Johannes Larcher said the UK is “very ready” for a service like Hulu.
During the conference, Larcher hinted that the collapse of Project Kangaroo has led to “some opportunities [Hulu] would like to exploit”.