Arqiva pulls the plug on internet TV arm SeeSaw

SEESAW, THE online video service, is set to close unless a buyeremerges in the next month after its parent company deemed it toocostly to keep running.

Arqiva, the broadcast transmissions group, appealed for a partnerin February to help carry the cost of the service, but revealedyesterday that it had been unsuccessful. SeeSaw will be shut or soldby Arqiva's financial year-end on 30 June.

A spokesman for the company said SeeSaw "no longer fits with thestrategic direction in which we are taking Arqiva and requiresconsiderable investment to succeed in an increasingly competitivemarket". He admitted that the business was unlikely to find a buyer.

Arqiva created SeeSaw out of the ashes of Project Kangaroo, anonline video-on-demand venture involving the BBC, ITV and Channel 4which fell apart following regulatory issues.

The acquisition was masterminded by the then chief executive, TomBennie, who said it was an "opportunistic and strategic decision".The site launched officially in February last year.

SeeSaw's position had come increasingly under threat after MrBennie was replaced by a former ITV senior manager, John Cresswell,in January. The new head launched a strategic review of the wholegroup.

Following an initial restructuring of Arqiva, SeeSaw was moved inhouse, which prompted the departure of the site's chief executive,Pierre-Jean Sebert, a former managing director of Eurosport in theUK, in March.

The Arqiva spokesman said: "SeeSaw was never a core business, itwas more of a toe in the water. The industry has changed since webought it, becoming more dynamic and competitive."

He said that beyond marketing, the investment needed to developthe service on other platforms and devices was just too significant.

The site put up a message to its users yesterday informing themabout its imminent closure: "As it will soon be 'goodbye' fromSeeSaw, we'd like to take this opportunity to say a big 'thanks' forall your support, custom and loyalty over the last 16 months."