Project Kangaroo, the online video joint venture between ITV, Channel 4 and BBC Worldwide, has been blocked by the UK’s Competition Commission.
The body ruled that the proposed service, which was expected to be rebranded SeeSaw, would restrict competition in the supply of video-on-demand content in the UK. Competition Commission chairman Peter Freeman wrote in its report: "After detailed and careful consideration, we have decided that this joint venture would be too much of a threat to competition in this developing market and has to be stopped."
The broadcasters were surprised by the decision. In a joint statement, they noted: "We are disappointed by the decision to prohibit this joint venture. While this is an unwelcome finding for the shareholders, the real losers from this decision are British consumers. This is a disproportionate remedy and a missed opportunity in the further development of British broadcasting.