Kangaroo chief defends service, then resigns

8:13 pm - November 11th, 2008
Category: Broadband Regulation

After defending the proposed Kangaroo multi-channel IPTV catch-up service to the Competition Commission, Ashleigh Highfield has resigned to join Microsoft.

The chief executive’s departure will come as a major blow to the proposed online television service for which the BBC, ITV and Channel 4 are hoping to get clearance from the Competition Commission. Highfield, who had launched iPlayer at the BBC, before becoming chief executive of Kangaroo claims the offer of becoming managing director of Microsoft’s online and consumer divisions in the UK was “an amazing opportunity I couldn’t turn down” and was not down to any frustration clearly felt among the proposed service’s board at being referred to the Competition Commission.

In his wake, Rod Henwood has been appointed interim chief executive. He has been the main ‘go-between’ for Kangaroo in its legal dealings with the Competition Commission and had formerly set up Channel 4’s online television service 4OD (4 On Demand).

ITV has released a statement claiming it does not believe the departure will impact the on-going investigation in to Kangaroo by the Competition Commission.

Rival broadcasters, including Sky and Virgin Media, forced the referral, claiming that the three companies joining forces was anti-competitive.

However, Highfield formed part of Kangaroo’s defence to the Competition Commission at the end of October which stated that it could not be seen as having an adverse effect on the price of online download because most of its content will be free to view and support by adverts.

The service also pointed out that it would be subject to fierce competition from international sites from the likes of Apple, Amazon and Hulu, the joint venture between Fox and NBC.

A decision from the Competition Commission is expected to be made in the first month or two of next year.

One rival the proposed Kangaroo service will not have to compete with is Orange. Despite being a prominent name in IPTV in France the ISP is reported to have scrapped plans for a similar service in the UK, claiming, in particular, that BT Vision already had too much of a head start in the market.

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