Could the competition referral save Kangaroo?

Competition regulators could force Project Kangaroo to open its player to all-comers and trigger a renaissance in British video creation: OpenKangaroo?

The Office of Fair Trading (“acting decisively to stop hardcore or flagrant offenders”) has referred Project Kangaroo to the Competition Commissioner. Sky and Virgin kicked off the enquiry so they’ll be pleased with the result. But there’s a reasonable chance this referral will be good news all round, even for Kangaroo.

First, and most obvious, the 24-week delay (that’s how long it takes) puts launch back to early 2009. By then the entire market will have shifted again: just remember how different everything looked when Kangaroo was first discussed. Back then (almost exactly a year ago) VoD looked fairly simple: it was going to be a paid-for, walled garden kind of business with TV shows delivered in standalone applications, wrapped in heavy-duty DRM.

Now, led by the BBC’s second-generation streaming iPlayer, VoD looks very different: it’s free, it’s delivered in a browser and DRM is fading fast. The OFT’s decision has handed Kangaroo the opportunity to sit out the next six months of cock-ups and dead ends and time travel to a different context all together. Sure it’s risky (and costly) to sit on your hands for half a year in a fast moving business but the opportunity to watch the other early entrants tripping over their laces and going bust surely can’t be missed.

The second reason why a referral might be a good thing will be more interesting to viewers and independent creators. Nobody’s betting on a drastic outcome for the enquiry. Hardly anyone’s expecting the Commissioner to close Kangaroo or break up the joint venture. The smart money’s on some fairly tough pre-launch modifications to the service and back to business. For instance, Sky and other competitors will want access to the Kangaroo player on equal terms. But granting Sky and any limited list of broadcasters slots on the Kangaroo player would require a competition enquiry of its own: every TV broadcaster, every video director, every creator of anything remotely like a TV programme will want a slot too (and that includes you lot with your Qik phones). And if the Commissioner obliges Kangaroo to open the player to all-comers that’ll be something like a revolution. An open Kangaroo will be a very different creature from the planned one.

It’ll be a platform to begin with. And it’ll probably be a tiered affair, with the investing partners’ shows featured at the top and the stuff from the great unwashed further down or out at the fringes. It’ll need a self-service section, something that works more like YouTube than a buttoned-down TV station. So it’ll need to have tools that let creators and uploaders make money, that give them access to Kangaroo’s presumably awesome ad sales resource. It might have shooting and editing tools, workshops and an advice forum. It might even commission content.

Suddenly, a post-OFT Kangaroo looks like a whole different kind of place: Kangaroo 2.0? OpenKangaroo? Sky’s self-interested intervention might have a most unexpected result. It might turn Kangaroo from—let’s face it—a slightly desperate tactical response to the seething grassroots video revolution into a national asset: a focus for the UK’s creative community. The new Kangaroo might be a genuine British hub for the emerging layer of video creators occupying the space below the telly production indies who got their leg up from Channel 4 25 years ago. In fact, it might be ‘a Channel 4 for the rest to us’. I don’t know about you but I’m suddenly finding the prospect of an OFT referral much more interesting than I’d ever expected it could be. Fingers crossed.

2 thoughts on “Could the competition referral save Kangaroo?

  1. It will definitely be interesting to see how it turns out. There are some great possibilities, and some complex issues. Is the OFT up to it?

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