ITV Digital loses fight for life

The long-expected demise of ITV Digital finally came about this morning as administrators decided they had no option but to break the company up and sell it off piecemeal.
With no buyer in sight, screens started to go blank at midnight when Nick Dargan, administrator to the cash-strapped company, switched off pay channels including Sky Sports, MTV and UK Gold.
Free-to-air channels such as the five main terrestrial channels will continue to be broadcast for the time being but the service is expected to cease altogether within a fortnight.
The decision to pull the plug on the pay TV business leaves an estimated 750,000 subscribers with a reduced digital TV service and 1,300 ITV Digital staff out of work. Commentators have also called into question the credibility of owners Carlton and Granada.
The failure of the platform also signals the death knell for ITV's hopes of becoming a major player in the age of digital television and a credible rival to Rupert Murdoch's BSkyB and the cable companies.
Ministers are also likely to come under pressure to abandon their target of converting the population to digital TV by 2006-10. Many analysts believe it is now unreachable.
The shadow culture secretary, Tim Yeo, last night condemned the government for refusing to intervene in the crisis. He said: "Now that ITV Digital's screens are going blank, ministers must play their part in finding a solution to the crisis."
The Football League has warned that a third of its 72 sides could go bust as a result of ITV Digital's failure to pay £185 million it owes. League executives are expected to launch a £500 million action against ITV Digital's owners, Carlton and Granada.
The Independent Television Commission will now re-advertise more "flexible" broadcasting licences, and hopes to award them to a new bidder by June 12.
BSkyB announced they are currently owed £22 million by ITV Digital in unpaid programming charges.
(GB)