Digital TV News

Virgin Media ‘concerned’ as Five rejoins Project Canvas

Wednesday 25 August, 2010

By Becca Talbot - becca@consumerchoices.co.uk

Cable giant Virgin Media has called for a further investigation into Project Canvas, after channel Five rejoins the on-demand internet TV venture.

Project Canvas, the new on-demand TV service that could replace Freeview, is facing another hurdle as Virgin Media calls for it to be investigated by telecoms regulator Ofcom after Five rejoined the development yesterday.

If launched, Project Canvas will allow Brits to watch catch-up TV on services such as the BBC iPlayer and 4oD, as well as standard TV channels, via an internet-connected set-top box.

Project Canvas is being developed by the BBC and other partners ITV, Channel 4, BT, TalkTalk, Arqiva and now Five, and could launch on set-top boxes in early 2011, bringing “internet TV to the masses”.

Channel Five originally pulled out of Project Canvas last month as it could “no longer commit to funding its share” of the £16million TV venture.

However the broadcaster has now rejoined the Canvas partners after being bought by Richard Desmond’s publishing group Northern & Shell - owner of the Daily Express, and OK! magazine.

Virgin Media said the return of Five to Project Canvas represents an even greater threat to the digital TV market, and has called for an independent investigation into the development.

A Virgin Media spokesperson said: “With the return of Five, the Project Canvas joint venture partners represent an even greater concentration of all TV viewing.

“This reinforces the pressing need for a thorough and independent examination of this closed, anti-competitive platform. We urge Ofcom to bring some much needed transparency to the whole collaboration.”

Project Canvas has been hit with criticism since it first announced its plans in December 2008. Both Virgin Media and satellite provider Sky voiced concerns that the TV venture would destroy competition.

Internet TV provider IP Vision also called for an investigation into Project Canvas last week, saying the platform would “inhibit competition and restrict consumer choice”.