The Week: Media news - Kangaroo costs rack up

Project Kangaroo, the video-on-demand venture, has cost ITV and Channel 4 £30 million in 2008, according to a report.

The broadcasters, facing a bill of £15 million each, should consider pulling out of the venture, the study by Enders Analysis argued. It estimates that the service, which is still to win regulatory approval, has already cost the partners - BBC Worldwide, ITV and Channel 4 - more than £25 million in staff and development costs. The report argues that ITV and Channel 4 should use the BBC's iPlayer's free model because the market for internet video advertising is "tiny and developing slowly".

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