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IPA responds to Competition Commission Kangaroo ruling

The IPA is disappointed by the Competition Commission’s ruling to halt the joint video on demand (VoD) project between ITV, Channel 4 and BBC Worldwide, which has been deemed a threat to other on-demand content providers.

06/02/2009

The IPA is disappointed by the Competition Commission’s ruling to halt the joint video on demand (VoD) project between ITV, Channel 4 and BBC Worldwide, which has been deemed a threat to other on-demand content providers.

Says Geoffrey Russell, IPA Director of Media Affairs, “From the IPA's position, we found ourselves torn between the desire to see the VoD area grow as a result of Project Kangaroo raising the sector's profile with the consumer and the dangers of allowing the creation of a giant, which might subsequently exploit its dominant position to the detriment of advertisers/viewers.”

According to the IPA, the extent to whether the latter posed a real danger lay in the satisfactory answers in two inter-related areas:

• The constraints placed on Kangaroo to ensure the availability to others of the original programming supplied by its founding partners.

• The extent to which advertising within downloads from the Kangaroo partici-pants was sold individually and in competition - and what safeguards might be put in place to ensure this actually took place.

The IPA was reassured with regard to the last of these points, however the proposals put forward by the parties about the availability of original programming were clearly insufficient to offset the Competition Commission's concerns.

Says Geoffrey Russell, “We are disappointed that the opportunity, which Kangaroo offered for growing the VoD market appears to have been blocked, but would still hope that some means might be found, whereby fears over the availability of original material to other channels in the marketplace might be overcome.”

Last updated 06/02/2009


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