Project Canvas gets the go ahead from BBC

Project Canvas, the video on demand venture, has succeeded in the getting the go ahead from the BBC Trust to start developing a service which will be offering internet TV content trough the regular consumers’ TVs.

BBC Trust, that is the governing body, has supported the on-demand project provisionally, in spite of the consistent objections from the digital TV service providers Virgin Media and Sky.
According to the Trust: “the likely public value of Project Canvas probably outweighed any potential negative impact on the market.”

Though, Sky that is the popular Digital TV service provider in UK, is of the view that the involvement of BBC in the Project Canvas would be distorting the complete market.

The Director of Corporate Affairs for Sky TV, Graham McWilliam, said: “There is no need for public money to be spent on replicating what’s set to be delivered through commercial investment. Consumers will not benefit if the BBC’s role in Canvas prevents other innovative services.”

The Project Canvas is being supported and funded by some of the well known names like the BBC, ITV, Channel 4, Five and telecommunications organization BT and TalkTalk.

It has aimed to let the consumers download the programmes and at the same time let them access online TV catch up services, for instance iPlayer and the ITVPlayer of BBC, through their TV with the help of set-top boxes being very much similar to the Freeview boxes.

The set-top boxes are supposed to cost approximately £200 and might be available on sale very soon, but Ian Maude, the head of internet at Enders Analysis, spoke to the Financial Times and said that the Project Canvas will show a little impact on the regular television market as long as the required hardwares costs less than around £50 and and the average consumers can find it affordable
“Initial take-up will depend on how much BT, Carphone Warehouse and other service providers are willing to subsidize Canvas set-top boxes,” he added.

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