Dan Sabbagh and John McGovern
Download 'Too Hot', an exclusive Specials track from iTunes
Controversial plans to create a website bringing together programmes owned by the BBC, ITV and Channel 4 have won the backing of Google, the owner of YouTube.
The internet giant told the Competition Commission that it believed the online media market was already highly competitive and that it hoped to form commercial relationships with the venture, called Project Kangaroo.
The watchdog is investigating Kangaroo, which promises to launch an advertiser-funded website with access to current ITV and Channel 4 programmes, and all BBC shows a week after original transmission.
In its response to the Commission, Google said it “does not expect this joint-venture [Kangaroo] to have any negative impact on competition or customers”. It hoped that Kangaroo “would be willing to partner with us”, without spelling out details.
It said that the emergence of new companies, such as YouTube - before it was bought by Google - and Facebook demonstrated that there were few barriers to entry in internet media. Google is the largest recipient of internet advertising in Britain, on track to generate about £1.6 billion this year.
The Commission is aiming to rule on whether Kangaroo can go ahead by the end of the year after the Office of Fair Trading voiced concerns that the internet venture could lead to a “concentration of these important and competing libraries of UK TV programming”. The broadcasters account for 70 per cent of television viewing.
Responses from other media groups willing to go public with their comments were mixed. Walt Disney offered qualified support and said that the venture could expand the market for video-on-demand - provided that the three broadcasters continued to compete for programme rights.
Virgin Media, the cable operator, was hostile and said that it could not see how the venture would not lead to “potentially significant adverse consequences” because of the three broadcasters' combined market power.
Neither Five nor Sky made a public submission.
How it works
— Three-way internet venture between ITV, Channel 4 and the BBC's commercial arm BBC Worldwide
— ITV and Channel 4 shows available on the day of transmission, but BBC shows will be streamed seven days after being broadcast
— Recent shows will be free, funded by advertising; archive shows likely to be available for rent
— Kangaroo is a code name. Real name is secret
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
archive shows likely to be available for rent even though they haave been paid for by the licence fee
jane, Whittlesey, UK
it's such a lovely idea that it will never happen
peter c, Devizes, Wessex