In 2001 ITV Digital, formerly ONDigital, pledged £315million for the rights to screen Nationwide League football for 3 years. Essentially this was a loss leader for the company, who hoped their exclusive access to these rights would lure in existing BSkyB customers and newcomers to the digital TV market alike. Consequently the company were hoping to secure loyalty from this newly established customer base and thereby ensuring continued subscriptions through and beyond this 3-year licensing agreement. 
In reality, technical problems alienated some customers and others were lured away by the better value and increased choice offered by Sky. When Sky began giving away set-top boxes for their digital service on a contract deal, ITV Digital were soon doing the same, a move which meant they were losing money on every customer they gained, relying on customer contracts to make their money. Unfortunately the cancellation of subscription rate for the ITV Digital service was an unpredicted and catastrophic 25% per year - over twice that of Sky. The company began haemorrhaging money at an astounding rate. 
Despite the huge advertising campaign with the knitted monkey at the end of 2001 and into early 2002, ITV Digital were soon forced to close their doors for business as the administrators Deloitte & Touche were brought in. After brief talk of rescue operations by the BBC and even Microsoft failed to produce any resolution, Deloitte & Touche promptly made the following announcement;
"Unfortunately there is no appetite in the market for a preservation of the business"
With this coup de grace, ITV Digital was no more. Soundly defeated by Rupert Murdoch’s BSkyB in an ill conceived and poorly executed assault on the digital TV market, the company folded, still owing over £180million to the clubs of the football league.
In Part 2 tomorrow - Other causes of financial trouble within Nationwide League clubs.