Confirmation that Carlton Communications and Granada intend to renegotiate the $450million (EUR520m) contract (2001/2-2003/4) between their jointly owned ITV Digital platform and the Nationwide League has sent tremors through many of the clubs who are reliant on television revenues for their future.
The three-year contract, which is not supported by bank drafts, has precipitated a cash crisis which has been mounting at the digital terrestrial platform since it was launched in November 1998. Accumulated debt at the 50/50 owned platform - which has 1.2 million subscribers - stands at $1.2billion (EUR1.39bn) and is increasing at a rate of $1m (EUR1.16m) a day.
Subscriber take-up at the platform has been considerably lower than anticipated and in a bid to compete directly with the BSkyB satellite platform, ITV Digital matched the latter's marketing philosophy of providing free reception equipment.
BSkyB, with an infintely better programming line-up, currently has 5.7 million subscribers (all digital) and is widely respected as the most successful Pay-TV platform in the world.
