Project Kangaroo killed by Competiton Commission

4 February 2009 12:19 GMT / By Amy-Mae Elliott

Project Kangaroo has been blocked by the Competition Commission.

The online TV project - a joint venture between ITV, Channel 4 and BBC Worldwide - has been deemed "too much of a threat to competition in this developing market".

The Project had previously been described as "anti-competitive" in December 2008, but the companies behind the venture resubmitted tweaked plans in the hope to get it approved.

The Competition Commission said: "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".

Responding to the findings, BBC Worldwide, ITV and Channel 4 issued a joint statement as follows:

"We are disappointed by the decision to prohibit this joint venture. While this is an unwelcome finding for the shareholders, the real losers from this decision are British consumers. This is a disproportionate remedy and a missed opportunity in the further development of British broadcasting".

There are no plans to appeal the decision, and 50 jobs will now be lost as Project Kangaroo shuts its doors.

Full tags

Home Cinema, Biz, Project Kangaroo, BBC, Channel 4, ITV, Competition Commission