Kangaroo decision heavily criticised
Chris Forrester ©RapidTVNews
| 05-02-2009
On Feb 4 the UK Competition Commission scuppered plans from the BBC, ITV and Channel 4 (the UK’s three major broadcast networks) to launch a VOD service provisionally called ‘Kangaroo’. The British media world is not complementary about the decision.
The concept behind Kangaroo was simple. It would have given British users and viewers a ‘one-stop shop’ to access and download content from these three important broadcasters.
Futuresource, a specialist media consultancy, argues that Kangaroo would have been an important driver for the rapidly-growing online TV market, one in which the UK leads the world. “No doubt the three broadcasters involved will continue to develop their own propositions, but it is likely that in total they will make less content available,” says Graeme Packman, from Futuresource.
Medwyn Jones, a partner at London entertainment law firm Harbottle & Lewis, said that the combined library and marketing power of the three broadcasters would have given a huge boost to the concept, one which is struggling to find a market. “By creating a massive video-on-demand library of the best of British programming, combined with catch-up services and the considerable marketing power of the three major UK broadcasters, the joint venture would have created a powerful vehicle to kick-start and meet the demands of a new video-on-demand market in the UK.”
Mr Jones adds that the decision, however, was not surprising. “Clearly the Competition Commission has decided that on balance viewers would get a better deal from increased competition amongst video-on- demand providers, rather than from the potentially anti-competitive consequences of a new ‘super video-on-demand’ service. But it is content owners, and in particularly UK independent producers, who are likely to benefit most from the Competition Commission's decision.”
© Rapid TV News 2009
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