Project Canvas: Watch out for DRM, rivals and quality

The video-on-demand initiative between the BBC, BT and ITV needs to keep an eye on DRM, quality standards and fairness towards its rivals as it develops, according to Ofcom.

The watchdog's comments come as part of a submission to the BBC's independent regulator, the BBC Trust, regarding the initiative to create a common standard to carry on-demand content to broadband-enabled TV receivers, known as Project Canvas.

The regulator recommended that the project should ensure some organisations seeking to take part in the initiative are not favoured over others. "An inequitable approach to participation in the joint venture which favours certain participants may lead to potential harm for consumers as a result of market distortion," Ofcom said in its submission.

The regulator also called for Canvas' rivals to have fair access to Auntie's programming. "It is important that commercially led propositions which seek to compete with Canvas should not be unfairly prevented from accessing BBC content," it said in its submission.

The issue of open standards is in the regulator's firing line too: with Canvas identifying preferred vendor-specific tech, Ofcom highlighted that proprietary technology could have issues around intellectual property - such as DRM - which could threaten competition or make it difficult for third parties to use it.

"Encouraging effective collaboration between Canvas and third parties already developing fully open standards in these areas is likely to be beneficial for consumers," it added.

Ofcom also flagged up the issue of Canvas' user interface and services such as electronic programme guides, which could potentially create a "competitive bottleneck" by disadvantaging third parties wanting to reach audiences through Canvas.

The watchdog also recommended that in setting minimum standards of quality, Canvas should take care they are "justifiable, non-discriminatory, transparent and proportionate" for third parties.

Ofcom - which currently has no formal role to play in the assessment process - said its comments were intended to highlight a "few high-level issues that we believe the Trust will wish to consider in detail in delivering its assessment of the proposals".

Ofcom appears to be positive about Project Canvas, however, saying it is "a timely application to develop a joint venture partnership to help enable delivery of internet protocol television".

The BBC Trust said it is currently assessing the Canvas proposal with the first period of public consultation having recently closed. The Trust's conclusions will be published on 8 June with final conclusions to be published on 24 July following a second period of public consultation.

Another BBC collaboration - a single platform for viewing BBC, ITV and Channel 4 programmes on a computer known as Project Kangaroo - was blocked by the Competition Commission in February.