Kangaroo Up Against It; Another Vote For Prohibition
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Kangaroo’s chances of launching are getting slimmer, after a second rival VOD operator asked the Competition Commission only to “prohibit” the BBCWW/ITV/C4 site. Babelgum’s response to the range of remedies mooted by the commission to Kangaroo was revealed yesterday, and Joost’s response, published today, hits the same note, “urging the CC to consider seriously the possibility of prohibiting the joint venture”.
SEE ALSO: Babelgum Wants Kangaroo Prohibited; Deadline Looming
Joost’s opposition was already on record in both a June complaint to the Office of Fair Trading and an August submission to the commission, one of many it considered in its inquiry. But now that the commission is seeking further input on the preliminary conclusion it reached in December - that Kangaroo would be anti-competitive - it really is crunch time for the venture ahead of the commission’s final, final decision, due February 8… and every piece of feedback counts.
The inquiry last summer had also heard critical views from BT (NYSE: BT), Tiscali, Lovefilm backer Arts Alliance Media, ad body IPA, TV makers’ guild PACT and others. If they, like Joost and Babelgum, follow their initial opposition with a vote for prohibition, the commission will be under severe pressure to block Kangaroo outright.
For its part, Kangaroo has a different view, of course. Its favoured remedy is to offer shows to rival VOD platforms via wholesale, giving up its hoped-for exclusivity; it’s also offered to operate as “three separate retail points that compete with each other”. In reality, this may be enough to convince commissioners to approve the site. But Kangaroo would likely wind itself up if forced to revert VOD rights to producers or give rivals access to its platform - two other options laid out by the antitrust body.
We know Joost has long been frustrated in its attempts to gain rights to carry BBC content. In the latest salvo, Joost says the success of iPlayer last year is proof Kangaroo would be powerful, and it criticised ITV.com and Channel4.com for failing to invest in their catch-up offerings while awaiting the Kangaroo verdict. Offering two alternative plans to the commission, it said either Kangaroo should either be reduced from three to two partners or should be forced to license content to it on pre-agreed terms like those that MCPS-PRS operates with respect to music.
Posted In: Legal, Regulatory, Media & Publishing, TV, VOD, Companies, LG
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