Competition Commission Nixes Project Kangaroo

LONDON: The U.K.’s Competition Commission has decided to block Project Kangaroo, the proposed VOD platform from BBC Worldwide, ITV and Channel 4.

In issuing its decision, the regulatory authority concluded that the proposed offering presented too much of a threat to competition in the British VOD market. Peter Freeman, the chairman of the Competition Commission and chairman of the inquiry group, stated: "The case is essentially about the control of U.K.-originated TV content. VOD is an exciting and fast-moving development in TV, which makes programs previously broadcast available to viewers at a time of their choice. The evidence we saw showed that U.K. viewers particularly value programs produced and originally shown in the U.K. and do not regard other content as a good substitute."

Freeman noted that the wealth of content controlled by BBC Worldwide, ITV and C4 put them in a dominant position as programming providers, thereby restricting competition from other VOD services. 

Reports indicate that the three partners have already invested some £25 million on Project Kangaroo. Up to 50 jobs will be affected by the Commission’s decision.