Kangaroo is coming under increasing pressure from potential rivals concerned over the potential hold the VOD platform might have on the market. BBC Worldwide, ITV plc and Channel 4 are proposing Kangaroo would offer UK-centred content after the expiry of catch-up TV window.
In submissions to the Competition Commission, Sky, BT and Tiscali all argue that Kangaroo would substantially lessen competition if the service were allowed to go ahead in its present form.
Sky in particular has some harsh comments, arguing that while the OFT considers it and “open question” as to whether US-originated content acts as a sufficient constraint on UK-originated TV content to warrant inclusion in the same product market, the broadcaster believes that all forms of content are substitution from the viewer perspective.
BT also believes there is a distinct demand for UK content as opposed to that coming from US television. “BT considers that the distinctive consumer demand for US and UK content means that the Kangaroo VOD service would not face adequate competitive constraints from on-demand VOD service providers, which focus less on UK content,” says the communications company’s submission. “In this regard, the Kangaroo parties are unlikely to face significant competitive constraints from operators such as Joost and Babelgum, who do not appear to focus on UK content.”
