TV trauma
Virgin Media is contemplating appealing to media regulator Ofcom about competition concerns over Project Canvas, as Orange is rumoured to join the IP TV venture.
According to Broadband TV News, Virgin Media has neither confirmed nor ruled out taking legal action over fears BBC-backed Project Canvas will restrict competition.
Project Canvas, which is set to launch as YouView in the first half of next year, will shake up people's viewing habits by bringing on-demand programmes to Freeview and Freesat as well as hosting services as diverse as Love Film and NHS Direct.
A spokesman reportedly said: "It's disappointing that what started with seemingly positive intentions has developed into something which wants to dictate how we all watch TV. The BBC Trust has explicitly admitted Project Canvas will hamper innovation and so damage competition. Companies of all sizes and from so many affected industries have expressed their concerns but, to date, these have been summarily dismissed."
Virgin Media's CEO, Neil Berkett recently claimed that Project Canvas had refused to form part of Virgin Media's cable line-up. He reportedly said the company still backed the aims of Project Canvas but was concerned it could distort and prevent competition from other providers.
Its director, Richard Halton reportedly said: "Canvas doesn't exist to own, retail or aggregate content. We got a clean bill of health from the OFT and the BBC Trust and we're pushing ahead with the launch in 2011."
Project Canvas' partners have already had a tumultuous couple of weeks after the sudden departure of troubled Channel Five, which had to pull out of the IP TV venture due to financial worries.
Its move has left the remaining partners, the BBC, ITV, Channel 4, Talk Talk, BT and Arqiva looking for a replacement or face the cost of making up Channel Five's share of the financial development burden.
Orange is rumoured to be interested in joining the TV collation having mulled entering the UK IP TV market before. It reportedly put its plans on ice in late 2008, worried its proposition could too closely resemble the BT Vision model but is still looking to be part of the future of television. However, Orange has not issued a statement regarding its future plans.
