TV & Video – Project Kangaroo

Project Kangaroo, the joint-venture VOD service between BBC Worldwide, ITV and Channel 4, continues to hop along whilst seemingly being attacked from all sides.

Rival Broadcasters – including BSkyB and Virgin – fear “viewer inertia” would make Kangaroo the default video-on-demand service for consumers, (as the PSBs involved already command 70% of TV viewing), resulting in anti-competitive bulk advertising deals and a stranglehold on premium movie and sports rights.

Indies will be unlikely to be able to keep all VoD rights to sell as they like after a catch-up window – although PACT is fighting for this option.

The Competition Commission has been drawn into the fray and has already made a range of suggestions and asked the interested parties to submit in writing.
Meanwhile, Ender Analysis argues that both ITV and Channel 4 should pull out of Project Kangaroo anyway since it is likely to cost them £30m over the course of the coming year, which both broadcasters can ill afford.

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