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As well as working together for HDTV channels

BBC Worldwide, ITV and Channel 4 are to form a commercial joint venture to launch an online on-demand service next year.

The service, which is subject to approval by the BBC Trust and the boards of ITV and Channel 4, has the working title "Kangaroo" and will offer content for free, to rent and to buy. It will complement BBC iPlayer, from which content will be listed in the new service, and ITV.com, while 4oD "will evolve into the new service", bringing together over 10,000 hours of current and archive programming from the three broadcasters. It will also aggregate video content from other content providers.

Lesley MacKenzie, who most recently worked on the launch of TataSky in India and previously held the post of director of channels and operations at Sky, has been appointed launch chief executive.

"This is a historic partnership between the UK's largest broadcasters," said BBC Worldwide chief executive John Smith. "For some time we have wanted to form an alliance with other rights holders in the UK and give viewers an on-demand service with real added value. The new service will contain some of the very best of the UK's content for consumers to view in one place, which will be both easy to use and great fun. By combining our joint resources we're really taking control of our destiny in a market that's moving at a fast pace."

The joint venture has been formed to allow the broadcasters to share technology development costs and best practices from BBC iPlayer, ITV.com and 4oD.

"This key strategic move is complementary to our investment in itv.com and further strengthens ITV's customer proposition online," said ITV executive chairman Michael Grade. "The joint service has the potential to become an important shop window for UK broadcaster content and a great destination for viewers. The deal is structured so that we each benefit from content being viewed, ensuring that there is significant revenue potential in the growth of the venture for all involved. The joint venture will play an important role, alongside itv.com, Friends Reunited and ITV Local, in delivering our online revenue targets as outlined by us in September."

"TV on the internet is a rapidly growing medium as proven by the incredible success that Channel 4 has enjoyed with its 4oD service," said Channel 4 chief executive Andy Duncan. "We want to continue to build and innovate in this area, giving viewers ultimate control over what they watch and when they watch it, and believe that partnering and sharing expertise is the best way of doing this. We believe this deal will lead to a major step change in the on-demand services offered by UK broadcasters and is good news for independents and the creative community, for advertisers and, above all, for viewers."

Digital Spy

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Well, I guess the channels will become best of freinds once Anolouge TV is switched off