ISPs and broadcasters leap in to attack Kangaroo
Broadband providers and entertainment companies are queuing up to criticise BBC Worldwide, ITV and C4 coming together to form a proposed joint online catch-up service, Kangaroo.
The potential service has been referred to the Competition Commission following concerns it may prove anti-competitive. The government decision has meant those opposed to the one-stop shop approach have been able to vent their displeasure and, in some instances, make those submissions, or the thrust of their opposition, public.
So far Google, owner of YouTube, is believed to be the only online entertainment company that has come out in favour of Kangaroo.
Virgin Media has been widely noted as one of the most vehemently opposed, claiming that the three terrestrial giants of UK broadcasting joining forces could stifle competition.
“Virgin Media has a very real concern that in what is a relatively undeveloped market, the formation of the Kangaroo joint venture will concentrate so much … content in the hands of one entity that it will be able to dictate the form and structure of the market going forward,” it submitted to the commission.
“That would lead to very detrimental outcomes for retail competition and for consumers.”
Sky has voiced similar concerns claiming that such a powerful catch-up service, funded at least in part by the licence fee, would hamper other existing Video On Demand (VOD) services and put off new entrants to the UK market.
BT and Tiscali, as one might imagine from ISPs offering VOD services, are similar scathing of the proposed new entity which Tiscali has told the Competition Commission would give “de facto exclusivity” to Kangaroo which would adversely affect programme commissioning. “The small producers will not be able to survive if Kangaroo squeezes their margins too hard,” Tiscali claims.
Time Warner and Disney have also both submitted responses to the Competition Commission stating their commonly held belief that Kangaroo would be too powerful in rights negotiations if allowed to continue unchecked.
Although the BBC, ITV and C4 make up around 70% of offline television viewing, the group claims that this powerful position would not be carried over on to the web where there are strong global players. Indeed, Ashley Highfield, Kangaroo’s Chief Executive, has repeatedly said that no single UK broadcaster could ever hope to compete against the likes of Apple, Sony, Microsoft and Google online – hence the need to combine forces.
Nevertheless, commentators are convinced that if Kangaroo is to be given the go-ahead in January the big sticking point of exclusivity on BBC, ITV and C4 content will need to be tackled. It is widely reported that Kangaroo has already expressed a willingness to only have exclusive catch up rights to its own content for 30 days, after which other broadcasters could have access to the shows.
Tags: BBC Worldwide, Channel 4, ITV, Kangaroo, Tiscali, Virgin Media, You Tube
