Digital TV News

Five pulls out of Project Canvas

Friday 2 July, 2010

By Becca Talbot - becca@consumerchoices.co.uk

UK broadcaster channel Five has dropped out of the Project Canvas partnership, saying the BBC-backed on-demand TV venture is no longer a “priority investment”.

Channel Five, which has recently been put up for sale by its parent company RTL, has pulled out of Project Canvas as it can “no longer commit to funding its share” of the £16million TV venture.

Project Canvas, a new on-demand TV service that is expected to replace Freeview, 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.

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

Charles Constable, director of strategy at Five, told the The Telegraph: “Despite withdrawing our interest in the venture we believe it will be a critical part of our strategy for reaching consumers in the future.”

Project Canvas was given the green light by the BBC Trust last month, and the on-demand TV service is still on track to launch in 2011, despite the loss of Five.

Jon Ingram, operations director at Digitalchoices.co.uk, said: “Channel Five’s exit from Project Canvas means that there could be space for a new partner.

“Cable TV giant Virgin Media has already hinted at its desire to be involved in the video-on-demand TV venture, and Canvas recently said it would welcome both Sky and Virgin as investors. Telly addicts could potentially soon be getting all the UK’s TV channels through one set-top box and digital TV service.”