The heavy loss-making operation has been under pressure from investors for months. They are worried that Carlton and Granada can not afford to keep funding ITV Digital while their own operations are under pressure from the downturn in world markets and falling advertising income.
ITV Digital has lost more than £400m since it was first launched as ONdigital, which was rebranded as ITV Digital earlier this year. Its subscriber numbers, which currently stand at 1.1m, are rising slower than expected, leaving it trailing its rival BSkyB by more than 4m.
The recent much-publicised launch of ITV Sport is, however, believed to have given the operation a boost.
Carlton and Granada see closing ITV Digital as a doomsday option. They know if they close it, it will leave them in a severely disadvantaged position and open them up to increased competition from rival Sky.
There are a number of possible options that could ensure ITV Digital's future. One option could it cooperate on the rollout of digital television with BSkyB, an option which could see its rival take a stake in ITV Digital.
For this to come off, the two would have to resolve their long-running dispute over what ITV channels Sky will run on its service.
ITV chiefs also want help from the government and the BBC to help promote the take-up of digital television. It was suggested earlier this year that the BBC could be a potential investor in ITV Digital.
A third option is that BT take a stake in the company. According to weekend reports, the two ITV companies have held talks with Sir Christopher Bland, the former BBC and now BT chairman.
BT is known to want to increase its interests in television. This is part of BT's strategy to stop customers defecting to cable firms. A link-up with ITV Digital could further strengthen its efforts in this area.
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