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BBC Worldwide Broadcasters Bounce Back with Kangaroo| Nov 29, 2007 | Consumer Broadband Services - Europe | Competitive Update
Current Perspective: Positive Event SummaryOn November 27th BBC Worldwide, ITV and Channel 4 announced that they will work together on a commercial on-demand content service under the working title of Kangaroo. The collection will bring together 10,000 hours of the UK broadcasters’ current and past programming. Initially, the service will launch as a Web-based proposition and be available for distribution on other platforms. Content will be available both streamed and downloaded, and viewers will be able to watch free, rent or buy. A name and brand for the new service will be unveiled before launch. Analytical Summary• Current Perspective: Positive on BBC Worldwide, ITV and Channel 4’s proposed joint venture, because it will place enormous amounts of quality video content online and ensure a means of making money on this content in the future, by advertising, rental or sales. It is difficult to underestimate the value of this service at present. • Importance: Very high to all broadcasters involved, as this will create a near and mid-term market for their products as well as giving them a serious VoD offering, if successful. The BBC offers a seven-day catch-up service, ITV provides a 30-day service and Channel 4 offers a more fully fledged offering in 4OD, but none offer much past that apart from DVD sales. • Market Impact: Very high on the content industry, and service providers in Europe, as this represents a huge change in the VoD market and in domestic broadcasting. The BBC alone is one of the world’s most respected program makers, and the sheer amount of programming Kangaroo may make available, across many markets, could represent an inflection point for video on demand, putting the likes of Hulu in the shade. Recommended Competitor Actions• BSkyB should follow suit. There is plenty of scope for Sky to meet and exceed the delivery that Kangaroo promises on a much shorter timescale. BSkyB’s satellite TV offering is reportedly edging towards saturation, and a move towards VoD offerings surely must follow. • Independent production companies should take careful stock of what Kangaroo offers them and look for competing services. Hulu is likely to look outside the continental US soon, should it be a success, and plenty of other players are offering VoD or IPTV. • Companies with an existing VoD or IPTV offering should concentrate on marketing what they have at the moment, emphasizing that Kangaroo is, at present, an unapproved joint venture. It is quite likely that Kangaroo will be beating a path to providers’ doors in future anyway. • Other content providers should exploit the nature of Kangaroo, which, after all, is a joint venture. There is a distinct chance that Kangaroo will become a poorly equipped Jack-of-all-trades, stymied by the conflicting needs of three large companies. There is plenty of negative PR potential there. • Companies should lobby against Kangaroo. In a certain light, Kangaroo could be portrayed as monopolistic, or taking advantage of the privileges the BBC and Channel 4 enjoy as broadcasters in the UK. It is entirely possible that creative lobbying could result in a stillborn organization. Recommended End User Actions• Consumers should wait with baited breath – and expect some interesting spoilers and creative deals from other on-demand content providers. • Consumers should wait to see how the content and network wars play out before investing in a particular service. Kangaroo might have the compelling content, but if its service delivery is poor, then the content may well switch to a platform that works. Therefore, it may be worth holding off on investing in a service or set-top box for a while after Kangaroo launches.
CLIENTS ONLY Competitive Positives and ConcernsRecommended Vendor Actions| Client access - Consumer Broadband Services - Europe | More information |
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