Ofcom warns Project Canvas may never get off the drawing board

Project Canvas – the on-demand broadband TV collaboration between the BBC, BT and ITV – could run into exactly the same problems that saw Project Kangaroo mothballed, according to the UK’s communications regulator. In a letter to the BBC Trust, Ofcom have warned the project could be subject to an Office of Fair Trading (OFT) investigation under competition laws.

Canvas is designed around the new next big thing: IPTV – which should bring the sort of functionality that’s been winning the BBC plaudits for its iPlayer to broadband-enabled set top boxes around the country. After what happened to Kangaroo, the Canvas team have been trying their damnedest to emphasise that it’s an open platform. Kangaroo – a joint venture between BBC Worldwide, Channel 4 and ITV – was an Internet based on-demand video service; it was felled because the OFT said it was anti-competitive.

“We understand that issues relating to the compliance of Canvas with all relevant competition obligations will be considered within the trust’s assessment, including those arising as a result of competition, merger and state aid law,” wrote Peter Phillips, Ofcom’s partner for strategy and market developments. “In that regard we recognise that there may be a future role for the OFT and/or Ofcom to assess the arrangement under relevant merger or competition law.”

Ofcom wants to make sure there isn’t what it calls a “competitive bottleneck” blocking other companies from using Canvas for their own programmes. It’s also worried about viewers who don’t have either Freeview or Freesat not being able to use Canvas – but the letter wasn’t all doom and gloom. Apparently the project still has the “potential to be an exciting and innovative,” and help broadband proliferate in line with Lord Carter’s Digital Britain dreams.

The BBC’s response was traditionally rigid. “The BBC Trust is currently engaged in a formal assessment process for the Canvas proposal,” a spokesman said. “The trust will listen to all stakeholders’ views and will publish its emerging conclusions on or before 8 June. There will then be a second period of public consultation with the trust expecting to publish its final conclusions on or before 24 July.” So that’s us told.

[ Guardian | Digital Spy ]

Tags: BBC, BT, Canvas, Channel 4, Digital Britain, IPTV, ITV, Kangaroo, OFCOM