ITV Digital's television licence has been put up for sale, after the failed broadcaster switched off pay-to-view programmes to its one million customers and took the final steps to liquidation.
Regulator the Independent Television Commission will invite applications for the licence (which has been split into three) later today, with the BBC seen as a strong contender.
ITV Digital's administrators pulled the plug on services including BSkyB sports and movies and music channel MTV at 7 a.m. Only free channels, including the BBC, stayed on air. A screen message apologised to viewers.
Its demise could drag down dozens of small football clubs, owed millions of pounds for broadcast rights, and is a blow to Britain's ambition of becoming the first fully digital TV nation by 2010. It will also cost around 1,500 jobs.
Industry experts said public broadcasters like the BBC may team up with other broadcasters to go after a new licence.
York City Chairman Batchelor declared his plan to attempt a rescue on his club's website. "It is my intention to head up a bid for ITV Digital backed by a consortium of people from motorsport and football," he said
Analysts said bidders would have to overcome two key problems - the ongoing technical weaknesses of the signal and the negative publicity created by ITV Digital's demise.
ITV Digital's 1.26 million customers are now up for grabs, which is expected to play into the hands of the nation's biggest pay TV firm, BSkyB.
Shares in Granada and Carlton - the two major shareholders in ITV Digital - fell today after a rise yesterday. Investors have expressed relief that the two had walked away from the loss-making venture.