Dan Sabbagh and John McGovern
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Controversial plans to create a website bringing together programmes owned by the BBC, ITV and Channel 4 have won the backing of Google, the owner of YouTube.
The internet giant told the Competition Commission that it believed the online media market was already highly competitive and that it hoped to form commercial relationships with the venture, called Project Kangaroo.
The watchdog is investigating Kangaroo, which promises to launch an advertiser-funded website with access to current ITV and Channel 4 programmes, and all BBC shows a week after original transmission.
In its response to the Commission, Google said it “does not expect this joint-venture [Kangaroo] to have any negative impact on competition or customers”. It hoped that Kangaroo “would be willing to partner with us”, without spelling out details.
It said that the emergence of new companies, such as YouTube - before it was bought by Google - and Facebook demonstrated that there were few barriers to entry in internet media. Google is the largest recipient of internet advertising in Britain, on track to generate about £1.6 billion this year.
The Commission is aiming to rule on whether Kangaroo can go ahead by the end of the year after the Office of Fair Trading voiced concerns that the internet venture could lead to a “concentration of these important and competing libraries of UK TV programming”. The broadcasters account for 70 per cent of television viewing.
Responses from other media groups willing to go public with their comments were mixed. Walt Disney offered qualified support and said that the venture could expand the market for video-on-demand - provided that the three broadcasters continued to compete for programme rights.
Virgin Media, the cable operator, was hostile and said that it could not see how the venture would not lead to “potentially significant adverse consequences” because of the three broadcasters' combined market power.
Neither Five nor Sky made a public submission.
How it works
— Three-way internet venture between ITV, Channel 4 and the BBC's commercial arm BBC Worldwide
— ITV and Channel 4 shows available on the day of transmission, but BBC shows will be streamed seven days after being broadcast
— Recent shows will be free, funded by advertising; archive shows likely to be available for rent
— Kangaroo is a code name. Real name is secret
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archive shows likely to be available for rent even though they haave been paid for by the licence fee
jane, Whittlesey, UK
it's such a lovely idea that it will never happen
peter c, Devizes, Wessex