Considering that Kangaroo has already been referred to the competition authorities, making even more dominant would seen to be counter-productive at this stage.
What is more intriguing is that this agreement would bring NewsCorp into the cabal, leaving only Virgin Media's channel properties out in the cold.
As a user, having all this content in the same place would be excellent. However, it would be bad news for smaller channels and any aspiring channels, ostensibly hijacking the promise of the internet to enable new media to evolve and develop.
Surely both Hulu and Kangaroo/Seesaw will eventually become a portal where other channels will seek coverage - the Sky of the Internet TV era; what is concerning is the prominence that will be given to the partners' properties on the EPG.