Joost attacks Kangaroo
- Published: 19 August 2008 12:34
- Author: Robin Parker
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- Last Updated: 19 August 2008 12:58
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Web TV platform Joost has complained that the proposed multi-broadcaster on-demand service Project Kangaroo will distort the competitive online TV rights market.
In its submission to the Competition Commission's inquiry into the service, Joost said Kangaroo's partners will unfairly benefit from the ability to cross-promote the platform and set up bundle advertising deals.
It used the marketing of the iPlayer across the BBC's flagship channels as an indicator of the cross-promoting opportunities available, though acknowledged that Kangaroo is a commercial venture, the BBC will not be able to advertise it on TV.
Joost also raised fears that the combined force of BBC Worldwide, ITV and Channel 4 would raise its own input costs and exacerbate the current challenge of securing web rights for PSB content.
"There is no reason why the content available to the joint venture should be supplied, at the retail level, through a single, favoured service, as opposed to being supplied through a range of outlets," Joost said.
Joost carries PSB content in the US and Sweden, but has not been able to secure the rights to any UK PSB programming, which it argues has caused its business to suffer.
"The wholesale availability of such content, and its price, is likely to be a key factor for the success or failure of VOD platforms," it said.
"We consider that this aspect of the proposal creates a clear risk that content prices will rise, without any offsetting consumer benefits. It will also put the joint venture's parents in a position to limit access to that content to the detriment of their competitors and, as the OFT's decision indicates, they have themselves indicated a firm intention to do just that."
The OFT referred Project Kangaroo to the Competition Commission at the start of July. The Commission has invited all partners, as well as interested third parties, to outline their views and is expected to publish its response in the new year.
ITV executive chairman Michael Grade has already criticised the OFT for delaying the launch, which was planned for this year.
