Updated: Sky Slams BBC’s Canvas As Anti-Competitive, Partners Respond
We warned BBC director-general Mark Thompson back in March that his Project Canvas was likely to face Kangaroo-style competition scrutiny. Now Sky has ripped the proposal to shreds in a 14-page BBC Trust submission designed to open a competition inquiry. Sky says…
SEE ALSO: BBC’s Canvas May Need OFT, Ofcom Scrutiny, Ofcom Says
—It’s anti-competitive: Canvas “has the propensity to affect significantly the development of existing and emerging competition”. Sky reckons “the BBC is considering specifying its own potentially new set of standards” - that’s despite IPTV director Richard Halton recently saying he’s not interested in new standards.
—Trust should have launched stronger review: Just as Ofcom complained in April, Sky also says the trust should go beyond its mere consultation on the project and open a full public value test, including Ofcom’s usual market impact assessment. The trust is “defective” because it “has chosen to consult on proposals that are both inchoate and potentially far-reaching, with insufficient time or certainty to allow proper consideration by respondents”.
—Canvas exceeds BBC’s remit: “The BBC’s primary purpose is to create public service content ... (it) is not required to develop, promote or operate its own means of delivery”. “The (BBC) has not adequately demonstrated, that there is ‘overwhelming consumer demand’.” Instead, Sky wants a “genuinely broad policy of on-demand content syndication across third party platforms and services”.
It’s no wonder Sky opposes Canvas - after all, the service is aimed at free-to-air viewers “unable or unwilling to pay a monthly television subscription”. Sky calls the Canvas application “deficient”, with too little detail on what is nevertheless a wide-ranging proposal. Indeed, precious little has come to light on what exactly Canvas would be. Although the BBC’s Februrary proposal says Canvas “will develop the standard standards ... a standards-based open environment for internet connected television platforms”, its IPTV director Richard Halton told a March conference: “Canvas is not an attempt to create standards.” Pressured not just by commercial operators but by the UK media regulator, it’s quite likely the trust will need to call Canvas in for fuller scrutiny,
Updated: For some reason, a response was issued by ITV on its website, rather than by the BBC, on behalf of Canvas’ partners, which include BT (NYSE: BT) and ITV: “The enormous consumer benefits that internet-powered TV can bring should not be restricted to paying customers ... Access to the Canvas platform would be open to any third-party, including Sky.” Note that ITV (LSE: ITV) until recently, was is part-owned by Sky (Update: Sky hasn’t yet divested its 17.9 percent stake as per the recent competition ruling).
Posted In: Media & Publishing, TV, IPTV, VOD, Companies, BBC, News Corp., BSkyB, YouView
iTunes Songs
Social Standing
Which media brands are getting a lift from Tweeters and bloggers right now -- and which are getting panned?
Show Me: