BBC Trust approves venture into Internet on TV

Posted by Alisa Zykova on December 22, 2009 at 12:33 PM

The BBC Trust announced its decision to go forth with Project Canvas. The venture will include set-top boxes providing access to on-demand TV services such as BBC iPlayer and ITV Player on their television sets as well as the chance to shop, download music and go on sites like Facebook, YouTube and Flickr, BBC News reported today.

Project Canvas is collaboration between the BBC, ITV, BT, Five, Channel 4 and TalkTalk that aims to develop an Internet Protocol Television Standard, according to BBC News. The set-top boxes are predicted to be priced at about £200.

"After careful consideration, the Trust has provisionally concluded that Canvas is likely to benefit license fee payers," said BBC Trust's Strategic Approvals Committee Chair Diane Coyle. "We believe Canvas could be an important part of the way in which the BBC delivers its services in the future."

The Trust suggested that the project would have positive effects on boosting the evolution of on-demand TV and opening up opportunities for Internet Service Providers to start developing "triple-play" services that features phone, TV and broadband. However, it may shrink the DVD rental industry and decrease demand for pay TV.

The Trust has agreed on numerous conditions governing the BBC's participation in the Project and may continue talks until Friday.

However, critics have voiced concern over the BBC using public money for the venture, the Daily Mail reported. A spokesman for British Sky Broadcasting said: "Given its privileged position in receipt of public funding, the proposals remain inconsistent with the BBC's obligations to adopt the least intrusive and most proportionate means of fulfilling its core public service."