paidContent.org - The Economics of Content

Current Story

UK’s ‘Hulu’ Kangaroo Delayed By Anti-Trust Inquiry

By Robert Andrews - Mon 30 Jun 2008 04:53 AM PST

In the UK, the launch of the “Kangaroo” VOD JV between BBC Worldwide, ITV (LSE: ITV) and Channel 4 faces significant delay after the government’s Office of Fair Trading (OFT) referred the partnership to the independent Competition Commission for a broader, six-month investigation in to possible market dominance issues. The online platform will pool TV programming from the broadcasters, allowing them to both charge for and place ads on the shows. Joost, Virgin Media (NSDQ: VMED) and News Corp’s (NYSE: NWS) BSkyB (NYSE: BSY) had submitted to the initial OFT inquiry, after which the body acknowledged there are plenty of VOD alternatives but concluded there was insufficient evidence that Kangaroo wouldn’t strangle the market with high prices.

The JV, whose new CEO starts work tomorrow, has conceded it is “unlikely to launch on the previously anticipated timetable” and ITV executive chairman Michael Grade lashed out against US dominance: “There is a serious problem with a regulatory framework that seems unable to take the most important interest into account - that of British viewers. This venture has been delayed by a reference to the Competition Commission, at the very same time that non-UK companies like Google (NSDQ: GOOG) and Apple (NSDQ: AAPL) are free to build market dominating positions online in the UK without so much as a regulatory murmur.” Full story at paidContent:UK

Posted in: Companies, BBCi, Countries, UK & Europe, Legal, Regulatory, Media, TV, VOD

Tags: kangaroo,


EconMusic is a conference focusing on the key strategic issues surrounding the emerging economics of digital music.

Related Research from Alacrastore.com
0 Responses:
  • There are currently no comments for this article.

    Why don't you make one?

Post Your Comment

Mobile Options

» Mobile App
» Mobile/WAP Site

Send a News Tip

About

paidContent.org, flagship of the ContentNext Media network, provides global coverage of the business of digital content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

David Kaplan
Senior Correspondent

Joseph Weisenthal
Correspondent

Robert Andrews
U.K. Editor

Amanda Natividad
Editorial Producer

Online Ad Deals Report

Social Media Report

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters