Strategy Verdict - Kangaroo

Currently limited to PCs and early adopters with media extenders or
media centre-type PCs, the current universe is not vast. But every day
we move closer to the widespread availability of on-demand content.

Unlike terrestrial TV, geography does not limit broadband distribution,
so the market for Project Kangaroo is both local and worldwide, assuming
rights are available.

Content will be streamed or downloaded using peer-to-peer technology.
The platform will initially host BBC, ITV and Channel 4 content
libraries, but, with its considerable draw, Kangaroo is likely to become
the destination platform of choice for all other rights owners, large or
small. In short, this seems to be about creating a one-stop-shop for all
the UK's flagship programmes on demand.

In one move, Kangaroo locks up the UK's primary content rights into a
broadcaster-owned platform ahead of any alternative services likely to
be developed by Apple, Microsoft or Sony. As and when any of these do
provide an alternative platform, the crucial UK TV content component
will already be constructed and available if Kangaroo wishes to
play.

By embedding the Kangaroo player into a broadband-enabled PVR, it ought
to be possible to deliver a Sky+ type box, plus Freeview channels. All
in all, it makes Kangaroo a potentially compelling consumer
proposition.

Review by Chris Griffin, director of consultancy, Decipher.