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A planned IPTV service set up between the BBC, ITV and Channel 4 has come under threat after the Competition Commission (CC) released its latest findings.

The CC has suggested that Project Kangaroo could gain a stranglehold over the UK's video on-demand (VoD) market too easily.

There are now fears that the changes the service would have to make to appease the CC would detract from its original business model.

Commenting on the news, Mark Little, a principal analyst at Ovum, told the Guardian: "There are going to have to be fairly big changes if it does launch, the sort of changes they are going to have to make will break the [existing] model.

"It will not launch in a form we recognise now and I can't see how it will launch in the near term [if it gets approval], there will need to be detailed protections to protect content owner."

According to the CC, the joint venture could bring an end to the healthy competition between VoD-providing rivals BBCW, ITV and C4C.

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