The deal, which is expected to be concluded within a few weeks, will see Arqiva acquire the platform assets of Kangaroo, including the hardware and software technology and related intellectual property.
Project Kangaroo’s assets were put up for sale after the VOD joint venture by BBC Worldwide, ITV and Channel 4 was prohibited by the Competition Commission in February (new media age 4 February).
Arqiva plans to launch a long-form video-on-demand service to UK consumers which aims to offer “top-end quality content” from broadcasters and independent content providers in a bid to provide a broad range of user experiences.
The service will include both free-to-air and paid content propositions.
Steve Holebrook, managing director for Terrestrial Broadcast at Arqiva, said: “We believe that online video-on-demand is an exciting and complementary development, and a natural extension to our traditional broadcast business.”
Arqiva provides much of the infrastructure behind television, radio and wireless communications in the UK and has three key areas terrestrial broadcast, satellite & media and wireless access.
The company, which is owned by a consortium of investore led by Macquarie Communications Infrastruture Group, counts BBC, ITV, Channel 4, Five and BSkyB among its major customers.
This story first appeared on newmediaage.co.uk