Project Canvas 'will kill TV quality and choice', claims Virgin Media

Virgin Media has complained that Project Canvas, the BBC and BT-backed venture to bring internet access to TV, will be anti-competitive and crush further innovation in television.

The cable operator told media regulator Ofcom an investigation was needed because the service as planned would restrict choice to consumers.

Project Canvas is a collaboration between the BBC, ITV, Channel 4, BT Group, Talk Talk and satellite broadcast firm Arqiva that will bring the web and on-demand video to Freeview digital TV boxes.

"We believe the collaboration between the country's three most prominent public service broadcasters, the two largest internet service providers and a major broadcast transmissions provider will stifle future innovation," Virgin said.

"Canvas will significantly and irreparably harm the TV sector as customers lose out on the greater quality and choice that a competitive and open market creates."

Virgin said the project needed to be examined closely because it would have an impact on so many different organisations, from consumer electronics firms to software developers and new technology manufacturers.

"These well-resourced companies are usually direct competitors in their respective markets but, by co-ordinating in this joint venture, they are establishing a single new TV platform of their own with a considerable incentive to favour this over other TV services," Virgin said.

Ofcom will have two months to consider the complaint and whether it will investigate Project Canvas. The venture is due to launch in the first half of next year.