The future of cross-network video-on-demand service Kangaroo, a joint venture between BBC Worldwide, ITV and Channel 4, is in doubt after the Competition Commission expressed concerns.
In provisional findings from its investigation into the proposed service, the Commission said three such big broadcasters collaborating would create a "substantial lessening of competition" in the emerging video-on-demand market. Concessions that would overcome those concerns are proposed in the report - mainly ensuring Kangaroo didn't get exclusive access to any BBC, ITV or C4 programmes - but if the venture won't accept any of those proposals the Commission won't let it launch.
In a statement, the broadcasters behind Kangaroo said: "We will continue to make the case for a service that will be both in vast majority free and non-exclusive, and of great benefit and value to British consumers. These suggested remedies are not an exhaustive list. They represent possible options that the commission has identified as a starting point for discussion. The shareholders remain committed to engaging with the commission and will continue to work towards launching the service next year".
As previously reported, with Project Kangaroo faltering over competition concerns, its CEO, Ashley Highfield, quit the company last month to take a job at Microsoft.