Orange to buy Project Kangaroo technology – Rumour

Orange is reportedly in talks to buy technology developed by BBC Worldwide, Channel 4 and ITV as part of their aborted video-on-demand (VoD) venture, Kangaroo.

The broadcasters invested approximately GBP20m (USD29m) into Project Kangaroo before the Competition Commission blocked the project in February, claiming it would hamper the development of the UK VoD market. Orange could secure the abandoned technology for as little as GBP3m (USD4.4m), reports the Guardian.

"We are examining this company and we see, of course, that it could be interesting," says a spokesperson for Orange's parent firm, France Telecom, adding "nothing has been decided".

France Telecom says the technology could help it develop Orange TV projects in France. Currently, the firm offers subscription IPTV services in France as part of its 'triple play' broadband and phone service packages.

However, plans to use the Kangaroo technology in the UK, where it was developed, do not seem imminent. This is despite reports dating back to 2007 that claim Orange TV will launch in the UK.

"Due to the current economic climate, the present position of the UK TV market, and the evolving regulatory environment, we have decided to put our plans for a full launch of a digital TV service on hold," an Orange UK spokesperson tells the Guardian. "Our vision and ambition for Orange to become a major player in the home entertainment market remains and we will regularly be reviewing our position."

Orange is reportedly one of two companies seriously considering a bid for the Kangaroo technology. The other challenger is an unnamed technology company.

Though the collapse of Kangaroo has left the future of online TV in limbo for many of the UK's terrestrial broadcasters, the BBC is still in talks over sharing its iPlayer technology. This is part of a regulatory settlement designed to ease the financial burden on its public service rivals, following the digital switchover in 2012.

According to reports last month, Hulu is also holding talks with broadcasters in a bid to establish a UK version of its VoD site, which is currently only available in the US.