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Kangaroo targets autumn rollout

This article is more than 15 years old

Kangaroo, the internet TV joint venture between BBC Worldwide, ITV and Channel 4, is set to launch this autumn.

The ITV chief operating officer and finance director, John Cresswell, speaking as ITV's first quarter-results for 2008 were published today, said the partners were hoping it would launch in September or October.

Previously executives from the three Kangaroo backers had said it would go live by the end of the year.

Cresswell said that the BBC's outgoing director of future media and technology, Ashley Highfield, who will join Kangaroo as chief executive on July 1, would review the service when he joins and that there would be a be a beta launch before a full rollout.

"It is going really well. Ashley's appointment is fantastic. With all new technical launches, you always have a soft launch before you unveil the whole thing," he added.

"It is about making sure that when the consumer gets to it, it won't fall over. No one wants a Terminal 5 online. We are pretty confident."

Speaking about ITV, Cresswell said the broadcaster's global content business would continue to work fine without its head, Dawn Airey, who stunned the broadcaster in late April by quitting to join Channel Five after only eight months.

ITV announced today that the global content division had increased its first-quarter revenues from £41m in 2007 to £58m in 2008.

"We will move on. We enjoyed working with [Dawn] but she has chosen to do something else. We have a really strong team in place. We move forward," Cresswell said.

He also reiterated the target for ITV Productions to secure 75% of ITV1's commissions, something Airey had previously described as "pretty remote".

"In terms of our published targets and how people are remunerated, the targets are to grow the business and double the revenues [to £1.2bn by 2012]," he said.

"75% is an ambition. I would love to get them as much of ITV's programme budget as I can and that is their target to get as big a market share as they can."

Cresswell said ITV was looking for further acquisitions to boost its global content business, following today's deal to buy Scandinavian independent producer Silverback in a deal worth £14m - with a cash consideration of £5.2m.

ITV today told the City that its results for the first quarter of 2008 had seen revenue boosted by 3% year on year to £492m, with net advertising revenue also up slightly at 2%, although revenue from its broadcasting operation fell by about 2% to £409m for the period.

"We started the year well in all parts of the business," Cresswell said. "We are mindful of the economic context in which we are operating in but our business is in better operational shape than it has been for some years."

He added that ad revenues were flat year on year - ahead of a wider UK TV market expected to be down 1% - which was a "good achievement compared to the market".

"One of the really important things is that more people are watching commercials on ITV1 than they were last year," Cresswell said. "In a fragmenting world, we are very pleased with that."

He also revealed that the new ITV director of television, Peter Fincham, who took up his role on Monday, had been in contact with presenters Anthony McPartlin and Declan Donnelly, who found themselves caught up in the phone-in scandal that rocked the broadcaster last year.

"Peter Fincham has been in touch with Ant and Dec and to reassure them of our support for them," Cresswell said.

ITV's share price was down 0.2p or 0.32% in early trading today to 62.7p.

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