Probe of video-on-demand venture

Kangaroo is run by Ashley Highfield who launched iPlayer for the BBC

Kangaroo, a video-on-demand venture between BBC Worldwide, ITV and Channel 4, has been referred for investigation by the Competition Commission.

The Office of Fair Trading concluded there was a danger that the platform could be too powerful.

It was worried that it could end up raising prices or limiting the ways on-demand services could be accessed.

Kangaroo was to launch in the autumn, but the Competition Commission now has until 12 December to investigate it.

It is led by former head of BBC future media and technology Ashley Highfield.

It was touted as "Freeview for the internet" and planned to offer more than 10,000 hours of programmes, although it was not supposed to replace the BBC's iPlayer service.

A statement from the three parties in the venture said they were "frustrated" by the delay that would be caused, but "confident that the joint venture will provide wider choice for consumers and be seen as a pro-competitive force in the market".