Kangaroo has argued that rights for VOD and linear TV are distinct, but Tiscali says that distinction is “completely meaningless to the consumer”, suggesting the 90 percent-plus share of conventional TV enjoyed by BBC, ITV (LSE: ITV) and C4 would naturally extend in to VOD…

Clearly spooked that Kangaroo could kill Tiscali TV (and, with it, BT Vision and the yet-to-launch Orange TV), Tiscali notes that Kangaroo will come “eventually through a broadband connection via a set top box”, warning: “It is a major television platform in waiting, a uniquely strong distribution mechanism through which the UK’s public service broadcasters will extend their hold over the country’s pay television industry.”

Update: BSkyB’s (NYSE: BSY) submission was released later today, claiming Project Kangaroo would represent a “relevant merger situation” between its founding trio, resulting in “an immediate loss of the competition between three close competitors in the provision of VOD rights”.