Overview

In this final report on Project Kangaroo, the proposed joint venture relating to video on demand (VOD), the Competition Commission confirms its provisional finding that the joint venture is likely to result in a substantial lessening of competition (SLC) in the supply of UK TV VOD content at the wholesale and retail levels, and consequently blocks the venture. The CC published a notice of possible remedies to address the SLC in December 2008. These possible remedies included putting in place access remedies to control the way that content is offered to other providers and/or making material modifications to the terms of the joint venture. Other possible measures have since been suggested by various parties, including a proposal by the joint venture partners to remove the joint venture's ability to wholesale content combined with measures to prevent the exchange of commercially sensitive information. But none of the proposed remedies could remove the threat to competition in the VOD market. Without this venture, BBC Worldwide, ITV and Channel 4 would be close competitors of each other. The Commission believes that viewers would benefit from better VOD services if the parties-possibly in conjunction with other new and/or already established providers of VOD-competed with each other.

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