Broadcasters may resurrect parts of failed Kangaroo

LONDON - BBC Worldwide, ITV and Channel 4 could still use parts of planned VoD venture Kangaroo, such as its technology, despite the service being prohibited from launch by the Competition Commission today.

Kangaroo: broadcasters may try to salvage parts of failed venture
Kangaroo: broadcasters may try to salvage parts of failed venture

The CC ruled the venture would be anti-competitive and could crush competition in the relatively nascent UK online video market.

However, the final terms of that prohibition - such as whether the technology developed by the three broadcasters may still be used - has yet to be drawn up. A Competition Commission spokesman said the legal agreement that parties have to sign to prohibit Kangaroo still needs to be drafted.

Each party now has a month to appeal and if any party does, this will delay the drafting of the final prohibition terms.

The three media partners used Ioko, a digital media platform design company, to create the technology and there is still a chance that each group could integrate the technology into their individual digital offerings.  

The CC spokesman added: "Such an agreement can require detailed and complex discussions over what needs to be included in that agreement - for example, with regard to assets and indeed any technology developed by the partnership. We'll need to discuss such issues in detail with the parties and the main consideration will be whether collaboration over technology raises any competition concerns."

Meanwhile, up to 50 staff at Kangaroo are set to lose their jobs as a result of the CC ruling - some from its three backers and the rest on a mixture of contract and freelance basis from third-party firms.

Today's ruling is also a blow to the four media agencies that had been shortlisted to win the media contract: Mindshare, Mediaedge:cia, OMD and Vizeum. Creative agency Fallon, had already been confirmed as the creative agency.

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