The issue is that ITV, Channel 4 and Channel 5, the owners of the Kangaroo joint venture, control too much of the UKs television production and allowing them to collaborate on distribution would make it too difficult for other online video services to compete.
Read the FT article for the details of how it works and proposed ways through this impasse, but the interesting thing for me is that this ruling should help people break from the old broadcast paradigm. Kangaroo is in many ways trying to recreate the old world when search and discovery was limited to flicking through the channels or buying a newspaper.
The potential of the internet is to offer radically new forms of search and discovery – starting with a simple search box that allows you to search by programme name through to socially driven recommendations and editors playlists. I think this ruling will help get us there.