The BBC's much publicised VOD service is to get the green light this week, albeit with some restrictions put in place.
Project Canvas has risen from the online ashes of Project Kangaroo, with the BBC hoping the service would act as a VOD platform for internet-enabled set-top boxes.
The service is a joint venture between the BBC, ITV, Channel 4, Five, BT and Carphone Warehouse, and if successful it will be the first time TV on the web (like iPlayer) will be given a mainstream broadcast platform.
The Financial Times is reporting that the BBC Trust has given a "provisional ruling" that the service is green-lit with minor modifications to happen before its proposed 2010 launch.
It is not clear what changes need to be made, but Sky will be looking on eagerly to see what Project Canvas will actually look like.
Sky, alongside Sony, has been critical of the BBC's VOD idea, as it "potentially stifles innovation", explaining: "I'd be concerned if they thought that the platform business and the distribution business is something that they really need to address."
If the BBC is successful with Project Canvas, we should see Freeview boxes with the software come into the market some time in 2010, with prices to be between £100 and £200.
Project Canavas has announced on Twitter that there will be an announcement tomorrow at 10am UK time regarding the BBC Trust's decision - so, stay tuned.
Article continues below