Kangaroo Offers Massive Concessions To Competition Commission

The online Video on Demand Project Kangaroo is hoping for a green light from the Competition commission after having canned plans to maintain its exclusivity on popular video on demand shows.

Kangaroo's proposals now include jointly sell on-demand and archive content to rivals. It could even go further and sell the joint partners' wholesale content separately.

This would help foster healthy competition on the online video on demand market as “three separate retail points that compete with each other”.

If that's not enough, each content provider could potentially "independently set the business model and price at which its UK TV content is offered to consumers. Each party would therefore determine whether each item of content was pay or free, download-to-rent and/or download-to-own and/or subscription and the relevant price."

Kangaroo, which is a joint venture between Channel 4, ITV and BBC Worldwide, had already been told by the competition regulator that they need to modify their proposal heavily if Kangaroo is to be rolled out quickly.

Paidcontent has a detailed analysis of the announcement by Kangaroo and posits that the three partners could decide to call it a day and abandon Kangaroo altogether if the Competition Commission sticks to its original proposed solutions.

Some could also argue that it is not the role of the BBC Worldwide to try and compete in the competitive commercial sector of video on demand since in effect Kangaroo is partly subsidised by the TV license.

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Our Comments

With Channel 4 currently in bad financial shape, Kangaroo's future is already in jeopardy. If BBC Worldwide partners with Channel four and in parallel, announces that it is taking over Woolworths distribution arm, it could be seen by some as a too-powerful media entity.

Related Links

Kangaroo kicks off competition battle


Kangaroo Will Give Up Exclusivity, Trio Could Operate Separately For Wholesale


Kangaroo offers to sacrifice joint selling of shows to achieve launch


Make or break time for Project Kangaroo


Project Kangaroo Offers Compromised Launch Proposal


Project Kangaroo tweaks plans for Competition Commission

(Pocket Lint)