Plug pulled on ITV net video plans

ITV suffered a major blow today as the Competition Commission ruled against its plans to join with the BBC and Channel 4 to bring video-on-demand to viewers over the internet.

Project Kangaroo had been planning a test launch early in the New Year. Unlike BBC iPlayer and ITV's equivalent, which let viewers catch up programmes aired in the past week, it would have allowed access to complete archives of programmes made by all three broadcasters.

But the Commission said that was unfair to the broadcasters' rivals such as Sky and Virgin Media and to existing video-on-demand companies such as BT Vision and Tiscali.

Commission chairman Peter Freeman said: "We are concerned that a loss of rivalry between BBC Worldwide, ITV and Channel 4, could restrict existing and future competition for video-on-demand.

The Commission has allowed two weeks for comments on its planned remedies, which include banning the project altogether. Its final ruling will be in February.