ISPs the “weak link” in broadcasters plans for Project Kangaroo online video services

November 30, 2007 – An analyst has warned that ISPs are the main barrier to online, on-demand video services, such as the recently announced Project Kangaroo proposed by UK broadcasters the BBC, ITV, Channel 4 and Five.

StrategyEye Digital Media analyst Aleksandra Bosnjak said that ISPs may well implement caps during peak hours as they are already stretched dealing with current online video services.

“UK ISPs will continue to cap download speeds at peak times when consumers can actually sit down and watch or download on-demand TV programming.  With so many pressures on the UK Internet pipes, there is a natural limit as to how effective broadcasters’ [Video on Demand] offers can be.  For the broadcasters, the ultimate aim of ‘Project Kangaroo’ is to embrace broadband content delivery and push their content direct to TVs and, in the long term, across different platforms as well.  It would be interesting to see more details on ISP’s reactions and revenue sharing structures between all parties involved.”

Bosnjak added that it isn't surprising that the broadcasters have joined together to deliver a "consolidated broadband video strategy... in light of emerging Web TV entrants such as Joost and Babelgum."