Orange to jump on Project Kangaroo?

06 Apr 2009 | 14.06 Europe/London

Project Kangaroo, the failed broadband TV venture between the BBC, ITV and Channel 4, could be bouncing back, with Orange a potential buyer for the technology behind it. The mobile phone provider is thought to be one of two firms – the other a tech company – in the running to buy Kangaroo's assets.

Orange, which is owned by France Telecom, is interested in launching a digital TV channel over here in the future – but wants to use Kangaroo technology in its other markets first, such as France, where it already has a million subscribers.

"Due to the current economic climate, the present position of the UK TV market, and the evolving regulatory environment, we have decided to put our plans for a full launch of a digital TV service on hold," a spokesman for Orange UK told The Guardian.

The Competition Commission blocked Kangaroo back in February on the grounds that it would give the public service broadcasters an unfair advantage in the UK broadband TV market. The terrestrial channels are thought to have invested around £20 million in the project's technology – and might have to sell it at a fraction of the cost.

Since the BBC already has iPlayer and Channel 4 has 4oD, the demise of Project Kangaroo has special implications for ITV. It revealed last month that the project will cost it £12 million altogether – and it's unclear how much money selling Kangaroo assets will recover. ITV has now reportedly entered into talks with American online television service Hulu (a joint venture of News Corporation and NBC) as it seeks to develop broadband TV via itv.com.

[ The Guardian ]