Project Kangaroo killed by Competiton Commission

No plans to appeal as regulator blocks joint online TV venture

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.

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