Business internet

Project Kangaroo Kyboshed

The Competition Commission has put the sword to Project Kangaroo. This was a proposed joint venture by the BBC, ITV and Channel 4 for a single online vehicle that would provide each channel’s TV content over the internet. Content was going to be paid for by advertising.

Basically the Commission believes that the venture would reduce competition in the online video market in the uk. The JV may be allowed if it shares its content with other providers and appears to have until 24th December to appeal, presumably informing the Commission of how it would do this.

Personally I can’t understand why people watch the TV anyway. Notwithstanding that, this does point towards a change in business models, in particular for the BBC. It isn’t difficult to envisage a scenario where more people will eventually watch the TV online than they do on their traditional box in the living room. At this point, because of the paid for by advertising element, there would surely have to be a question mark over the future of the TV license fee.

Internet users are already beginning to be charged more for the increased usage that video online is stimulating. So effectively they are already paying twice though obviously these usage revenues don’t go to the BBC.