Debt-ridden broadcaster ITV Digital is facing closure after the High Court put it into administration. But what went wrong and what happens now? Stuart Arnold answers some of the key questions

Q How has ITV digital got itself into this mess?

A Going head-to-head with the well-established BSkyB, it has been unable to attract and keep subscribers. Digital television through an aerial provides a limited number of channels and the technology is easily pirated. Some parts of the country are also unable to receive the required signal. The decision to pay £315m for Nationwide League football has backfired with some matches only attracting a thousand viewers.

Q Who are the losers?

A Scores of football clubs have budgeted to receive ITV Digital cash. Their income could be slashed if forced to agree to a lower settlement. Subscribers may find pay TV channels such as Sky Sports withdrawn overnight if administrators are unable to prevent the company going bust. Owners Carlton and Granada are funding ITV Digital so it stays on air at least until a solution to its financial problems is found.

Q What if you receive digital channels from either satellite broadcaster BSkyB or cable company NTL?

A You are unaffected. But BSkyB would lose money it receives from ITV Digital for its channels if the company went bust. NTL has its own problems and has a £12bn debt mountain.

Q Can't anyone step in and save ITV Digital?

A The administrators have two weeks to create a viable business and prevent closure by re-negotiating the company's contracts with creditors. The Government is promoting digital television, but says it is not responsible for bailing it out. BSkyB could buy the company, but competition laws mean this is unlikely. A BBC-led consortium providing free channels and a slimmed down pay-TV service could prove the way forward.

Q As a subscriber, could I lose money?

A Most people pay by monthly direct debit which would be simply stopped if the service closes. Digital set-top boxes would be technically the property of the administrators, but are unlikely to be reclaimed.

Q What about Monkey, the woolly character who promotes ITV Digital?

A He's currently out of a job, but with his talent it won't be long before he finds another one.