BBC gets go-ahead for service to let television access the internet

12 April 2012

THE BBC has been given the go-ahead for a new service to allow people to access websites through their TV.

The scheme, Project Canvas, has been backed by all the major terrestrial broadcasters but has been criticised by pay-TV operator BSkyB, which claims the licence fee should not be used to develop it.

Set-top boxes using the Canvas software are expected to be available late next year for about £200. They will allow users to access websites such as BBC iPlayer, NHS Direct and Amazon through their living room TVs.

The BBC Trust, the public service broadcaster's governing body, has been reviewing whether Canvas is a suitable use of the licence fee.

Late last week, it is believed to have informed BBC executives that it would make a provisional ruling in favour of the BBC's continued involvement in the venture, and an announcement is expected early this week.

Canvas is likely to become the dominant platform for internet services on TV, as the venture's partners are the BBC, ITV, Channel 4 and Five, plus the leading broadband providers BT and Carphone Warehouse.

It is expected to offer easy access to catch-up TV services such as the BBC's iPlayer and Channel 4's 4OD. Last week Channel 4 and internet service provider Talk Talk signed up the project, with each committing to invest more than £16million to get the video-on-demand joint venture up and running.

But the project has come under fire from British Sky Broadcasting. "Sky does not believe that Canvas should be allowed to proceed, or at least, not with the BBC, and the licence fee, playing an active role," the firm said.

"Given its unique and privileged position in receipt of substantial and guaranteed public funding, the proposals remain inconsistent with the BBC's obligations to adopt the least intrusive and most proportionate means of fulfilling its core public service purpose."

The new service will also compete with a new generation of TVs which have access to sites such as the BBC's iPlayer already built in, with all of the major manufacturers developing internet connected TVs. The BBC Trust declined to comment.

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