The Competition Commission is investigating whether a joint venture between broadcasting giants ITV, Channel 4, and the BBC is in violation of established fair trading rules. The project, codenamed Kangaroo, has made enemies of both BSkyB and Virgin Media amid fears that its state funded position grants it a monopoly over British media.
Project Kangaroo is an attempt at consolidating popular on-demand media services into a single website, a move which the Office of Fair Trading believes could irreparably damage conventional broadcasting companies. The project would provide programmes on a free-to-view basis utilising funds from sponsors and advertisers to cover any immediate expenses. Content older than seven days will be available for rent from the website.
Free-media colossus, Google, has expressed a desire to foster a working relationship with Project Kangaroo but was hesitant to reveal any details. It is interesting to note that Google has started to sell TV advertisements to online media companies which may explain their fervent defence of the project.
The search engine maintains that Project Kangaroo is benevolent and can only enhance existing relationships between broadcasting companies and the consumer. However, Virgin Media is not convinced, believing that the combined power of the three broadcasters is enough to eliminate competition from other companies permanently. British Telecom, Tiscali, and BSkyB have also voiced concerns about the project.
The Competition Commission is expected to rule on whether Project Kangaroo adheres to fair trading rules by the end of the year. However, with so much criticism being levelled at the proposal, it seems likely that the watchdog will take steps to limit the damage that the media platform can cause to other business.
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