Our take...
With the addition of Channel 4 all major UK broadcasters are now partners in Project Canvas. However, it is the involvement of Talk Talk which is perhaps more significant. Previously Canvas only had the public support of one ISP, incumbent telco BT. Talk Talk registered 4.3m broadband subscribers at 3Q 09, compared to BT's 4.9m. Between them the two companies have a 53 per cent share of the UK broadband market.

Unlike BT, Talk Talk does not currently operate its own Pay TV service but could develop a TV proposition based around Canvas' open platform. Canvas is unlikely to become a significant revenue stream in its own right for ISPs (much of the content is set to be free-to-view and, with most subscribers on unlimited data packages, ISPs will be unable to upsell customers to a Canvas broadband tier). However, ISPs could monetise Canvas by charging a fee (either to consumers or content owners) to guarantee the quality of video delivered over-the-top. By offering Canvas to subscribers Talk Talk may be able to differentiate itself from some of its rivals in the competitive UK broadband access market.

As the number of JV partners grows to six Canvas continues to underline its openness and its willingness to accept new members. In a bid to gain approval by the BBC Trust (and escape any future scrutiny from the Competition Commission) Canvas has emphasised its aim to develop an open platform rather than act as an aggregator of content. The JV has also stated that it does not intend to operate billing for the platform and membership will not guarantee prominence on the EPG (but, with the EPG set to be based on Freeview channel numbers, current JV partners would feature at the top of the guide).