BBC Worldwide, Channel 4 and ITV are to launch a vod service

[DB7]

Broadcasters to launch joint VoD service



* Mark Sweney



BBC Worldwide, Channel 4 and ITV are to launch a video-on-demand service offering more than 10,000 hours of TV programming.



The project has a working title Kangaroo as first revealed by MediaGuardian in June. Its launch next year could be a watershed moment in the development of on-demand video media in the UK.



Kangaroo, which one source has described as "wanting to do for broadband what Freeview did for digital TV", will be a joint venture in which BBC Worldwide, ITV and Channel 4 have an equal share.



In a joint statement, the partners said Kangaroo "will work independently as an aggregator of both joint venture partners and third-party content".



The project aims to be a "rich entertainment site", where consumers can catch up with recently aired shows and older archive programming.



The service will initially be available via the web, with shows available either streamed or to download. However, the ultimate aim is to deliver Kangaroo content direct to televisions.



Users will be offered programming for free, rental and buy-to-own, with the intention that Kangaroo provides a "one-stop shop" for all BBC, ITV and Channel 4 content.



Project Kangaroo, which will receive an official name before launch, will also "encourage other quality content providers" to join the service.



It aims to "build on the experience" of the broadcasters' existing media players, ITV.com, 4oD and the BBC iPlayer.



BBC iPlayer content will be listed within the new service, while Channel 4's website will host a catch-up service which will see 4oD "evolve into the new [Kangaroo] service".



"The joint service venture has the potential to become an important shop window for UK broadcaster content and a free destination for viewers," said Michael Grade, the executive chairman of ITV.



The plans are subject to formal approval from the BBC Trust and the ITV and Channel 4 boards.



The new venture, which conspicuously excludes Channel Five as a founding partner, has appointed BSkyB veteran Lesley MacKenzie as chief executive.



MacKenzie has been responsible for launching TataSky in India and prior to that was director of channels and operations at BSkyB.



"We believe this deal will lead to a major step change in the on-demand services offered by UK broadcasters and is good news for independents and the create community, for advertisers and, above all, for viewers," said Andy Duncan, the Channel 4 chief executive.



"For some time we have wanted to form an alliance with other rights holders in the UK and give viewers an on-demand service with real added value," said John Smith, the chief executive officer of BBC Worldwide.



"By combining our resources we are really taking control of our destiny in a market that's moving at a fast pace."



MacKenzie has been bought on board specifically to handle the launch of Kangaroo.



Following the project officially going live MacKenzie and the founding partners will discuss whether she will continue to head the operation or if a new chief executive will handle post-launch day-to-day operations.

[DB7]

Kangaroo poised to shake off competition shackles



* Published: 03 December 2008 17:45

* Author: Robin Parker

BBC Worldwide, ITV and Channel 4 have just 13 days to save video-on-demand joint venture Project Kangaroo – but are still confident it will launch next spring.



The future of Kangaroo was thrown into doubt yesterday (3 December) when the Competition Commission (CC) said the service would need material changes to avoid distorting competition in the UK's video-on-demand market.



But Broadcast understands the Kangaroo team is prepared to accept at least one of the CC's suggested remedies and that it expects the project to get the go-ahead on 8 February, when the CC makes its final decision.



Kangaroo estimates it will then take around a month to win approval from the broadcasters' boards and is gearing up for a spring launch.



The CC has given all interested parties, including opponents to Kangaroo such as BSkyB and Virgin Media, until 16 December to respond to its initial findings.



This week it spelt out several remedies to its concerns, including making all Kangaroo content available to new or existing VoD providers, such as other broadcasters or iTunes, at a fair price.



Other remedies include limiting Kangaroo to older archive material and sending viewers who want recent catch-up content to ITV and C4's existing sites. The BBC already plans to use Kangaroo in this way, sending viewers to BBC iPlayer for catch-up.



The CC could also limit Kangaroo's ability to wholesale its archive or catch-up content as a whole, forcing each broadcaster to strike individual deals for programmes.



Another suggestion is that independent producers retain all VoD rights after a catch-up window to sell as they choose.



A CC spokesman said blocking the creation of Kangaroo would only be considered as a last resort. He added: "I don't think anyone would be dumb enough not to recognise this project would have enormous benefits to customers; the issue is whether those benefits are outweighed by not having a competitive relationship between the three major terrestrial channels."



The Kangaroo team is expected to meet after the CC publishes its full 100-page report into the initial phase of its inquiry on 5 December.



Kangaroo said in a statement: "We welcome the Commission's recognition that '[Project Kangaroo clearly has much to offer'. We will continue to make the case for the service."



Kangaroo at a glance



30-day catch-up content and 10,000+ hours of archive.

Content is either ad-supported, or paid-for, either to watch or own.

More than 90% of content viewed will be free to consumers.

Where applicable, VoD rights to remain subject to terms of trade.

BBC iPlayer, itv.com and channel4.com to continue offering streaming and catch-up.

Kangaroo likely to buy up rights to third-party content.

All parties to continue to compete independently for VoD. rights.



The board Acting CEO Rod Henwood and CFO Christine Mullin; Ben McOwen Wilson and Max Graesser, ITV; David Moody and Claude London, BBCW; Jon Gisby and Sarah Rose, C4

Supporters Google, Walt Disney Company

Qualified supporters Pact, National Grid Wireless, Radio Centre, Institute of Practitioners in Advertising

Opponents BSkyB, Virgin Media, Tiscali TV, BT Vision, Arts Alliance Media, Joost