Editing ITV Digital (section)

===Post-collapse===
By 30 April 2002, the [[Independent Television Commission]] (ITC) had revoked ITV Digital's broadcasting licence and started looking for a buyer. A consortium made up of the [[BBC]] and [[Crown Castle]] submitted an application on 13 June,<ref>{{cite web|url=http://www.bbc.co.uk/pressoffice/pressreleases/stories/2002/06_june/13/digital_terrestrial.shtml|title=BBC – Press Office – Digital Terrestrial|website=www.bbc.co.uk}}</ref> later joined by BSkyB, and were awarded the licence on 4 July.<ref>{{cite news|url=https://www.telegraph.co.uk/news/1399251/BBC-wins-ex-ITV-digital-licences.html|title=BBC wins ex-ITV digital licences|date=3 July 2002|work=The Daily Telegraph}}</ref> They launched the [[Freeview (UK)|Freeview]] service on 30 October 2002, offering 30 free-to-air TV channels and 20 free-to-air radio channels including several interactive channels such as [[BBC Red Button]] and [[Teletext]], but no subscription or premium services.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/entertainment/2373143.stm|title=Freeview's 'fresh start' for digital TV|date=30 October 2002|work=BBC News}}</ref> Those followed on 31 March 2004 when [[Top Up TV]] began broadcasting 11 [[pay TV]] channels in [[timeshare]]d broadcast slots.

From 10 December 2002, ITV Digital's liquidators started to ask customers to return their set top boxes or pay a £39.99 fee.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/2561331.stm|title=Viewers told to return set-top boxes|date=10 December 2002|work=BBC News}}</ref> Had this been successful, it could have threatened to undermine the fledgling Freeview service, since at the time most digital terrestrial receivers in households were ONdigital and ITV Digital legacy hardware. In January 2003, Carlton and Granada stepped in and paid £2.8m to the liquidators to allow the boxes to stay with their customers, because at the time the ITV companies received a discount on their broadcasting licence payments based on the number of homes they had converted to digital television. It was also likely done to avoid further negativity towards the two companies.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/2675071.stm|title=ITV Digital viewers 'can keep' boxes|date=19 September 2018|work=BBC News}}</ref>

During the time under administration, Carlton and Granada were in talks regarding a merger, which was eventually cleared in 2004.<ref>{{cite news|url=https://www.telegraph.co.uk/finance/2865417/ITV-cleared-for-a-united-kingdom.html|title=ITV cleared for a united kingdom|first=David|last=Litterick|date=7 October 2003|work=The Daily Telegraph}}</ref>

====Effect on football clubs====
[[File:Valley Parade Mainstand 2016.jpg|thumb|ITV Digital's collapse contributed to Bradford City F.C. being put into administration]]
Following the proposed Football League merger, with the lucrative finances it proposed, ITV Digital's collapse had a large effect on many football clubs. [[Bradford City F.C.]] was one of the affected, and its debt forced it into administration in May 2002,<ref>{{cite news|url=https://www.independent.co.uk/sport/football/football-league/bradford-ready-for-greatest-comeback-in-clubs-history-183252.html|title=Bradford ready for greatest comeback in club's history}}</ref><ref>{{cite web|url=https://www.telegraph.co.uk/sport/3027857/Bradford-City-put-into-administration.html|title=Bradford City put into administration|date=16 May 2002}}</ref> followed by [[Leicester City]] in [[2002–03 Leicester City F.C. season|October]].<ref>{{cite news |title=Leicester City put into administration |url=http://news.bbc.co.uk/1/hi/business/2349397.stm |url-status=live |publisher=BBC News |date=22 October 2002 |access-date=25 September 2006 |archive-url=https://web.archive.org/web/20040603130230/http://news.bbc.co.uk/1/hi/business/2349397.stm |archive-date=3 June 2004}}</ref>

[[Barnsley F.C.]] also entered administration in October 2002, despite the club making a profit for the twelve years prior to the collapse of ITV Digital.<ref>{{cite web|url=https://www.theguardian.com/football/2002/oct/03/newsstory.sport10|title=Barnsley go into administration|last=Staff and agencies|date=3 October 2002|website=The Guardian}}</ref><ref name=BarnsleyRecord>{{cite web|url=https://www.dailyrecord.co.uk/sport/football/itv-digital-collapse-almost-destroyed-us---1026759|title=ITV Digital collapse almost destroyed us – now I fear SPL sides could suffer same fate, warns ex-Barnsley chairman|website=[[Daily Record (Scotland)|Daily Record]]|date=10 June 2009|access-date=30 September 2019}}</ref> Barnsley had budgeted on the basis that the money from the ITV Digital deal would be received, leaving a £2.5 million shortfall in their accounts when the broadcaster collapsed.<ref name=BarnsleyRecord/>

Clubs were forced to slash staff, and some players were forced to be sold as they were unable to pay them. Some clubs increased ticket prices for fans to offset the losses.<ref>{{cite web|url=http://www.itsroundanditswhite.co.uk/articles/the-effect-of-the-itv-digital-collapse-on-lower-league-football|title=The Effect of the ITV Digital Collapse on Lower League Football|date=12 March 2014}}</ref>

The rights to show [[Football League]] matches were resold to [[Sky Sports]] for £95 million for the next four years compared to £315 million over three years from ITV Digital, leading to a reduction from £2 million per season to £700,000 in broadcasting revenue for First Division clubs.<ref>{{cite news |url= http://news.bbc.co.uk/2/hi/business/2097852.stm |title=Football League agrees £95m TV deal |date=5 July 2002 |work=BBC News}}</ref><ref name=Earthquake>{{cite web|url=http://twohundredpercent.net/earthquake-the-collapse-of-itv-digital/|title=Earthquake: The Collapse of ITV Digital|website=twohundredpercent.net|access-date=30 September 2019|archive-date=1 December 2020|archive-url=https://web.archive.org/web/20201201050646/https://twohundredpercent.net/earthquake-the-collapse-of-itv-digital/|url-status=dead}}</ref>

In total, fourteen [[Football League]] clubs were placed in administration within four years of the collapse of ITV Digital, compared to four in the four years before.<ref name=Earthquake/>

====News Corporation hacking allegations====
On 31 March 2002, French cable company [[Canal+ (French TV channel)|Canal+]] accused [[Rupert Murdoch]]'s [[News Corporation (1980–2013)|News Corporation]] in the United States of extracting the UserROM code from its [[MediaGuard]] encryption cards and leaking it onto the internet.<ref>{{cite news 
  | last = Cassy
  | first = John 
  |author2=Paul Murphy 
  | title = How codebreakers cracked the secrets of the smart card 
  | newspaper = The Guardian
  | date = 13 March 2002
  | url = https://www.theguardian.com/technology/2002/mar/13/media.citynews
  | access-date = 2008-02-25
  | location=London}}</ref>

[[File:Rupertmurdoch.jpg|thumb|upright|Rupert Murdoch possibly used hacking to indirectly weaken ITV Digital]]
Canal+ brought a lawsuit against News Corporation alleging that it, through its subsidiary [[NDS Group|NDS]] (which provides encryption technology for Sky and other TV services from Murdoch), had been working on breaking the MediaGuard smartcards used by Canal+, ITV Digital and other non-Murdoch-owned TV companies throughout Europe.<ref>{{cite news| url=https://www.telegraph.co.uk/finance/2758371/ITV-Digital-set-to-sue-Murdoch.html | location=London | work=The Daily Telegraph | first=Neil | last=Bennett | title=ITV Digital set to sue Murdoch | date=31 March 2002}}</ref><ref>{{Cite web |url=http://www.thisislondon.co.uk/news/article-874199-murdochs-nds-faces-1bn-lawsuit.do |title = Murdoch's NDS faces $1bn lawsuit - News - London Evening Standard |archive-url=https://archive.today/20130505084119/http://www.thisislondon.co.uk/news/article-874199-murdochs-nds-faces-1bn-lawsuit.do |archive-date=5 May 2013 |url-status=dead}}</ref> The action was later partially dropped after News Corporation agreed to buy Canal+'s struggling Italian operation [[Telepiu]], a direct rival to a Murdoch-owned company in that country.<ref>{{cite news 
  | title = Vivendi settles row with NDS
  | newspaper = The Guardian
  | date = 2 May 2003
  | url = https://www.theguardian.com/business/2003/may/02/5
  | access-date = 2008-05-20
  | location=London}}</ref><ref>{{cite news 
  | last = Tryhorn 
  | first = Chris  
  | title = Murdoch lines up Sky Italia
  | newspaper = The Guardian
  | date = 30 April 2002
  | url = https://www.theguardian.com/media/2003/apr/30/broadcasting.rupertmurdoch
  | access-date = 2008-05-20
  | location=London}}</ref> 
<!-- This doesn't tally with source although there is suggestion that the case was not closed -needs sourcing better.-->

Other legal action by [[EchoStar]]/NagraStar was being pursued as late as August 2005, accusing NDS of the same wrongdoing.<ref>{{cite news 
  | last =  Sullivan
  | first = Bob 
  | title = Pay-TV piracy flap intensifies
  | publisher = [[NBC News]]
  | url = https://www.nbcnews.com/id/3078546
  | archive-url = https://web.archive.org/web/20160305163031/http://www.nbcnews.com/id/3078546
  | url-status = dead
  | archive-date = 5 March 2016
  | access-date = 2008-02-25 }}</ref> In 2008, NDS was found to have broken piracy laws by hacking EchoStar Communications' smart card system, however only $1,500 in statutory damages was awarded.<ref>{{cite magazine 
  | title = EchoStar Wins Battle, Loses War In News Corp. Piracy Case
  | magazine = Multichannel News
  | url = http://www.multichannel.com/article/CA6561344.html
  | access-date = 2008-06-21 }}</ref>

On 26 March 2012, an investigation from BBC's ''[[Panorama (British TV programme)|Panorama]]'' found evidence that one of News Corporation's subsidiaries sabotaged ITV Digital. It found that NDS hacked ONdigital/ITV Digital smartcard data and leaked them through a pirate website under Murdoch's control – actions which enabled pirated cards to flood the market.<ref>{{cite web|url=http://www.digitalspy.com/tech/news/a373442/news-corps-nds-accused-of-itv-digital-hack/|title=NDS accused of ITV Digital card hack|website=[[Digital Spy]]|date=27 March 2012}}</ref><ref>{{cite news|url=https://www.bbc.com/news/uk-17494723|title=Murdoch firm accused of hacking|date=27 March 2012|publisher=BBC|work=BBC News}}</ref> The accusations arose from emails obtained by the BBC, and an interview with Lee Gibling, the operator of a hacking website, who claimed he was paid up to £60,000 per year by Ray Adams, NDS's head of security.<ref>{{cite news
 | title = Murdoch's TV Pirates
 | series = Panorama
 | publisher = BBC
 | url = http://www.bbc.co.uk/programmes/b01dlvbm
 | archive-url = https://web.archive.org/web/20141209000000/http://www.bbc.co.uk/programmes/b01dlvbm
 | archive-date = 9 December 2014
 | access-date = 21 January 2024
 | url-status = dead
 }} [https://archive.org/details/MurdochsTVPirates Alt URL]</ref> This would mean that Murdoch used computer hacking to directly undermine rival ITV Digital. Lawyers for News Corporation claimed that these accusations of illegal activities against a rival business are "false and libellous".<ref>{{cite web|url=https://www.theguardian.com/media/2012/mar/26/news-corp-ondigital-paytv-panorama|title=Questions for News Corp over rival's collapse|first=David|last=Leigh|date=26 March 2012|website=The Guardian}}</ref> In June 2013 the [[Metropolitan Police]] decided to look into these allegations following a request by [[Labour Party (UK)|Labour]] MP [[Tom Watson (Labour politician)|Tom Watson]].<ref>{{cite web|url=https://www.theguardian.com/media/2013/jun/07/news-corp-subsidiary-nds-claim|title=Met looks into claims ex-News Corp subsidiary aided attack on pay-TV rival|first=Mark|last=Sweney|date=7 June 2013|website=The Guardian}}</ref>