28/03/2002
Troubled ITV Digital goes into administration
An administration order made by Carlton Communications and Granada in relation to ITV Digital has been granted by the High Court in London.
Not only does the judgment throw a shadow of the future ITV Digital, but the future of the government's 'Digital Britain' policy and the financial health of many Nationwide League clubs is also in doubt.
After the March 27 judgment, ITV Digital will now be run as a going concern by administrators from Deloitte & Touche. For ITV Digital, the hope remains that the company can emerge from the administration period in a position to compete with BSkyB – albeit on a more limited front.
For this to happen, the ability of the administrators to renegotiate existing contracts will be crucial as the consultancy seeks to limit liabilities. The Nationwide League contract is one such obligation that must be reduced if the business is to survive administration. Currently, ITV Digital has £178 million of that two-year contract still to pay, and before the administrators went in, the company offered football chiefs a reduced payment of £50 million. The administration order was made after this proposal was rejected.
While the football league teams are making robust noises through lawyers threatening a £500 million lawsuit, too much pressure could force the liquidation of ITV Digital – and the realistic prospect of retrieving some revenue from the deal.
Keith Harris, chairman of the league, described ITV Digital's actions as "low, cheap, bad behaviour" and, according to league directors, up to a third of the league's 72 clubs could be forced into administration if ITV Digital is unable to meet its obligations.
The failure of ITV Digital will also have an impact on the government's policy to remove analogue transmissions by 2010.
Behind closed doors, ministers are conceding that the prospect of wholly digitalised transmission by that time now appears to be in tatters. In public, however, media minister Kim Howells is saying the government will "be sticking to its target because we think switchover is achievable between 2006 and 2010".
The problems, however, did not end there for Carlton and Granada as they reached stalemate in talks with BBC over a joint promotion of low-price set-top boxes capable of upgrading to pay-TV services.
The corporations are at loggerheads over proposals for an Internet browsing facility and the levels of interactivity on offer. The boxes are due to be launched on March 30 and priced under £100.
ITV Digital, www.itv-digital.co.uk
(GMcG)
Not only does the judgment throw a shadow of the future ITV Digital, but the future of the government's 'Digital Britain' policy and the financial health of many Nationwide League clubs is also in doubt.
After the March 27 judgment, ITV Digital will now be run as a going concern by administrators from Deloitte & Touche. For ITV Digital, the hope remains that the company can emerge from the administration period in a position to compete with BSkyB – albeit on a more limited front.
For this to happen, the ability of the administrators to renegotiate existing contracts will be crucial as the consultancy seeks to limit liabilities. The Nationwide League contract is one such obligation that must be reduced if the business is to survive administration. Currently, ITV Digital has £178 million of that two-year contract still to pay, and before the administrators went in, the company offered football chiefs a reduced payment of £50 million. The administration order was made after this proposal was rejected.
While the football league teams are making robust noises through lawyers threatening a £500 million lawsuit, too much pressure could force the liquidation of ITV Digital – and the realistic prospect of retrieving some revenue from the deal.
Keith Harris, chairman of the league, described ITV Digital's actions as "low, cheap, bad behaviour" and, according to league directors, up to a third of the league's 72 clubs could be forced into administration if ITV Digital is unable to meet its obligations.
The failure of ITV Digital will also have an impact on the government's policy to remove analogue transmissions by 2010.
Behind closed doors, ministers are conceding that the prospect of wholly digitalised transmission by that time now appears to be in tatters. In public, however, media minister Kim Howells is saying the government will "be sticking to its target because we think switchover is achievable between 2006 and 2010".
The problems, however, did not end there for Carlton and Granada as they reached stalemate in talks with BBC over a joint promotion of low-price set-top boxes capable of upgrading to pay-TV services.
The corporations are at loggerheads over proposals for an Internet browsing facility and the levels of interactivity on offer. The boxes are due to be launched on March 30 and priced under £100.
ITV Digital, www.itv-digital.co.uk
(GMcG)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
04 April 2002
League to talk with ITV Digital administrators
ITV Digital's administrators Deloitte & Touche have called for a meeting with league chiefs after the Nationwide League's chairman said that he was "committed to entering positive discussions".
League to talk with ITV Digital administrators
ITV Digital's administrators Deloitte & Touche have called for a meeting with league chiefs after the Nationwide League's chairman said that he was "committed to entering positive discussions".
28 November 2001
Granada profits fall due to advertising revenue drop
Granada’s profits have dropped sharply due to a slump in advertising revenues. The company’s profits before taxes during the year to September fell by 27 per cent to £236 million, while losses at ITV Digital soared by 26 per cent to £234 million.
Granada profits fall due to advertising revenue drop
Granada’s profits have dropped sharply due to a slump in advertising revenues. The company’s profits before taxes during the year to September fell by 27 per cent to £236 million, while losses at ITV Digital soared by 26 per cent to £234 million.
10 June 2002
NTL reveals 'improved' digital package
NTL, one of the UK’s leading broadband services company, have unveiled plans for a significantly improved digital TV product with over 25 new TV channels, 17 new radio channels as well as new look Interactive and EPG services, with more features and enhanced functionality.
NTL reveals 'improved' digital package
NTL, one of the UK’s leading broadband services company, have unveiled plans for a significantly improved digital TV product with over 25 new TV channels, 17 new radio channels as well as new look Interactive and EPG services, with more features and enhanced functionality.
29 January 2020
Antrim Firms Benefit From Google Digital Workshops
Entrepreneurs and business owners in the Antrim area are being urged to avail of a series of free Google digital workshops. Offered in partnership with the Antrim Enterprise Agency, the sessions cover everything from starting out as business to developing an existing one with expert advice and business planning services available.
Antrim Firms Benefit From Google Digital Workshops
Entrepreneurs and business owners in the Antrim area are being urged to avail of a series of free Google digital workshops. Offered in partnership with the Antrim Enterprise Agency, the sessions cover everything from starting out as business to developing an existing one with expert advice and business planning services available.
15 November 2017
Young People To Develop Digital Skills Under New Scheme
More than 900 teachers and local communities in Belfast and L'Derry are to be provided with resources and training to help young people develop digital skills and explore key economic growth sectors.
Young People To Develop Digital Skills Under New Scheme
More than 900 teachers and local communities in Belfast and L'Derry are to be provided with resources and training to help young people develop digital skills and explore key economic growth sectors.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.