Highfield’s Latest Leap: What’s It Mean For Kangaroo, Microsoft?

Kangaroo CEO Ashley Highfield’s departure to Microsoft (NSDQ: MSFT) seemed to come as much as a shock to Kangaroo’s own partners as to onlookers. Speaking at the Changing Broadcast Summit on Monday, Channel 4 new media director Jon Gisby said: “I’m on a hiding to nothing here ... I won’t pretend that we would have chosen it.” But what does it mean for all concerned… ?
SEE ALSO: Highfield Quits Kangaroo For Microsoft, Will Lead UK Online Business
For Kangaroo: Highfield’s departure certainly comes at a sticky time. In perhaps as little as two weeks, the venture will learn the Competition Commission’s preliminary conclusion on whether it’s anti-competitive, with the possibility Kangaroo will have to offer remedies and make subsequent strategic changes to the proposal before the commission’s final February 8 deadline. The inquiry has heard rival VOD operators’ complaints Kangaroo will have too much power over buying TV rights and selling ads, so the venture would have preferred to go in to this important regulatory phase under the CEO who’s guided it this far.
On the other hand, Kangaroo may already have laid down its final card to the commission, confident of securing approval. Benefiting from dialogue with the commission along the way, it’s already thought to have made altered some of its ambitions and it last month submitted a 73-page document refuting other complaints point-by-point. It looked like Kangaroo’s last public word and, since private lines of communication between Kangaroo and investigators have been ongoing, the video service should expect few surprises. Besides, with Highfield staying on to hand over, it’s possible he’ll be on board when the verdict comes in. Many will say Highfield’s departure points to the imminent demise of Kangaroo before it’s even started - but they should know that Kangaroo development is already well under way for a private beta next month plus lofty ambitions to take the service global.
For Microsoft: In appointing Highfield, Microsoft may have found a high-profile candidate to finally do what it’s been unable to all these years - create a coherent web content proposition that successfully marries an advertising offering to rival Google’s. Despite ranking only second behind Google (NSDQ: GOOG) on UK internet share, Microsoft has suffered from, for example, branding decisions that have given its MSN services a kind of schizophrenia. Highfield is likely to bring a new focus on user experience, and his experience in managing a vast network of dozens of sites at the BBC seems like a great fit at Microsoft, which could benefit from harmonisation. Having grown used to navigating the politics of a large media organisation like the BBC and, after that, work with the Competition Commission, diplomacy at Microsoft should seem like a piece of cake. We’re still not sure, however, what any of this means for the GM of Microsoft’s UK online services group, Sharon Baylay, who is away on maternity leave.
Highfield’s critics will say his departure to Microsoft crowns a love affair with the company that marred his stewardship of the BBC’s iPlayer project. Highfield took flak from platform neutrality advocates riled by the original iPlayer incarnation’s dependence on a Windows app. A year before that, he had joined Bill Gates on stage at a pally Microsoft event in Las Vegas to demo joint BBC/Microsoft prototypes. His successor Erik Huggers came from Microsoft but, in a reversal that’s perhaps a response to the iPlayer episode, has gone further on platform neutrality than Highfield did.
For Channel 4: While Highfield may have made a name launching iPlayer for the BBC, in Rod Henwood, Kangaroo has picked an interim CEO replacement with similar tenure, involved in establishing Channel 4’s 4OD, the UK’s first major VOD service. Nowadays Kangaroo’s lead adviser on regulatory issues, Henwood is well suited to steer the JV through to February. His appointment could mean a greater say for C4 in Kangaroo’s direction. The broadcaster is suffering from a £100 million shortfall and awaiting Ofcom’s ruling on the future of its public funding - a joint venture with BBC Worldwide and ITV (LSE: ITV), Kangaroo represents just the kind of joined-up thinking C4 needs.
Posted In: Companies, LG, Microsoft, ashley highfield
Android Apps (Free)
Social Standing
Which media brands are getting a lift from Tweeters and bloggers right now -- and which are getting panned?
Show Me: