Advanced Television

Kangaroo concerns Sky

September 19, 2008

BSkyB has added its voice to concerns about Project Kangaroo, the online television service planned by ITV, Channel 4 and BBC Worldwide. Many of the channels on Sky's subscription TV service draw heavily on archive programming. In its filing to the Competition Commission, which is investigating Kangaroo, Sky argued that the service "might be expected to result in a substantial lessening of competition" in the nascent video-on-demand sector.Sky also said Kangaroo's "access to direct and indirect state funding", because its shareholders are public service broadcasters, gave it a "unique" advantage. "Kangaroo's existence may reduce the likelihood of VOD offerings by existing competitors and potentially decrease the likelihood of new entry," Sky said.

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