BT Voices Concerns Over Kangaroo

BT has voiced its concerns about Project Kangaroo to the Competition Commission, warning of its ability to distort competition and command increasing proportions of ad revenue.

In its submission to the Competition Commission inquiry into the proposed video-on-demand venture, BT said it thought Kangaroo would substantially reduce competition as the three broadcasters would control most UK-produced TV content.

BT said: “The ‘tipping’ in favour of the Kangaroo service raises a number of potential competition concerns, including, first, very real concerns regarding the reduced incentives of the Kangaroo parties to supply their content to competing retail providers on terms that will enable the latter to compete effectively at the retail level.”

“Second, the extent to which the Kangaroo service may be in a position to obtain third party content on materially more favourable terms than those available to its retail competitors, leading to distortions of competition at the retail level.”

The broadcasters have been forced to put back Kangaroo’s autumn launch to wait for the outcome of the Competiton Commission, which is due to rule on the issues surrounding the venture early next year (see NewsLine).

BT: 0207 469 2337 www.btplc.com