ITV Digital factfile

13 April 2012

The Football League today lost their High Court case to recoup £131.9million, part of the £178.5million they claimed they were owed by ITV Digital's parent companies Carlton and Granada.

The court ruled the broadcasters were not liable to pay the remaining two years of the now defunct ITV Digital's three-year £315million contract with the League.

Here we take a look at the facts behind the channel's collapse.

ITV Digital began life in November 1998 as OnDigital, launched in a blaze of glory with fireworks and TV presenter Ulrika Jonsson in a strapless dress.

Shareholders Granada Media and Carlton Communications dreamed of bringing digital TV choice, formerly a hi-tech no-man's-land, to Middle England.

But early set-top box supply problems meant it missed out on Christmas sales in 1998.

Chief executive Stephen Grabiner resigned the following July, and he was replaced by Stuart Prebble.

The station was re-branded ITV Digital in April 2000, and subscriber targets were lowered.

Last August, ITV Digital began advertising on terrestrial TV with a campaign starring a knitted mascot monkey and comedian Johnny Vegas.

The station launched its ITV Sport channel at the same time.

The owners of ITV Digital were in frantic talks with the Football League in an attempt to revise a £315million broadcasting deal they struck in June 2000.

The contract for the rights to show Nationwide League and Worthington Cup matches was ITV Digital's biggest deal and was meant to turn it into a major player.

However, the station was unable to pay the full amount and offered to pay less than half of the £178.5million owed.

The League branded the channel's offer "derisory" and threatened a £500million lawsuit if it did not receive the full amount for the remainder of the three-year contract.

Although the station had just over 1.26million subscribers, it was losing up to £1million a day.

It also had a 'churn' rate - customers giving up their subscriptions - as high as one in four, which was not sustainable while it was giving away free set-top boxes.

The Football League then filed a claim in the High Court for £131.9million against Carlton Communications PLC and Granada Media PLC, owners of ITV Digital, but today lost that case.

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