Joost has warned that Project Kangaroo, the commercial video on demand venture from BBC Worldwide, ITV and Channel 4, could limit competition for VOD, programme syndication and online advertising in Britain.

In a submission to the Competition Commission's ongoing investigation into the proposed service, Joost said that Kangaroo would "immediately consolidate [the] market share" of streaming on-demand video services operated by the BBC, ITV and Channel 4.

"While Joost welcomes fair competition," it said, "Joost has a particular concern over the marketing and cross-promotional opportunities available to the joint venture. The joint venture's shareholders represent the UK's three most significant broadcasters... in a unique position, with privileged access to analogue terrestrial spectrum, and gifted spectrum on digital terrestrial."

It added that "it is inconceivable that the joint venture and its shareholders will not fully exploit this cross-promotional opportunity, which far exceeds anything available to Joost or any other service struggling to get a foothold in the UK market".

On concerns regarding programme syndication, Joost said that despite having "many conversations" with the three broadcasters over distributing their in-house content, "the parties have been unable to conclude any arrangement, and as far as we are aware, full-length episodes of BBC, ITV or Channel 4 programmes do not currently appear (legally) on any other online video service".

On advertising, Joost noted that the OFT and Ofcom were sufficiently concerned about the advertising clout of ITV alone to impose the contract rights renewal remedy at the time of the ITV plc-creating merger between Carlton and Granada. That mechanism, however, is being reviewed by Ofcom and the OFT.

The Commission expects to announce its decision about Kangaroo in January.