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Video production project given green light by OFT

Photo for this news articleThe Office of Fair Trading has decided not to investigate Project Canvass.

Project Canvass, a proposed scheme that will see online video productions brought to television schemes, has been approved by the Office of Fair Trading (OFT).

The idea is being developed by a variety of content providers, including the BBC ITV, Channel 4 and Five, with the aim of using a subscription-free set-top box to stream online videos to TVs.

There had been fears that the joint venture would be ruled illegal due to merger rules, but the OFT reported today that it does not qualify for investigation.

This is because none of the partners are shifting pre-existing business to the new platform and so it is not counted as a merger under the Enterprise Act of 2002.

"Our investigation has confirmed that the JV [joint venture] partners, including the BBC, do not intend to transfer an existing business into the JV." explained Sheldon Mills, OFT director of mergers

"Therefore, regardless of the potential significance of Project Canvas JV for the future of internet connected television, the notified proposals do not give rise to a merger qualifying for substantive investigation by the OFT."

There are a number of other ways companies have sought to bring internet video to televisions, including through internet-connected TVs, Blu-Ray players and games consoles.

Posted by Angela MetcalfeADNFCR-2863-ID-19790751-ADNFCR
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