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Kangaroo Comes Out Fighting: 73-Page Rebuttal Of Competition Concerns

Embattled by concerns from numerous competitors that it will unfairly impact wholesale, consumer and advertising prices, Project Kangaroo has decided to issue a spirited, 73-page rebuttal of the claims - we have the full document, released today, in this post. It’s a collection of the same kinds of defence we heard from Kangaroo recently - but the fact Kangaroo felt compelled to make this big case suggests it’s eager put a cork in the gripes rivals have submitted in recent weeks to the Competition Commission’s ongoing inquiry - the BBCWW/ITV/C4 JV was not compelled by the commission to submit this joint position paper but volunteered to do so.

Rights: The document argues Kangaroo won’t have unfair access to VOD rights because they will be separate from TV show rights.
Prices: In arguing against claims it will drive up VOD prices to consumers, it reveals over 90 percent of on-site shows will be free to viewers.
Market share: It repeats its expectation it will get 10 percent of UK VOD revenue by 2012 and argue it faces “significant competition” from Sky, Virgin Media (NSDQ: VMED), Microsoft (NSDQ: MSFT),  Amazon’s Lovefilm and Tesco. And it denies it will control too many VOD rights: “A significant proportion of the parties’ linear broadcast material is unsuitable for archive VOD (e.g. news, sport, talent shows and soap operas) and the parties do not have VOD rights over much material that is suitable, including most US material.”
Advertising: And Kangaroo reckons it will have “insignificant combined market share” of advertising spend.

More in the document and after the jump…

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Oct 30, 2008 12:53 PM ET
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Posted In: Media & Publishing, TV, VOD, Companies, LG

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