British media group Granada is facing calls from investors to shut ONdigital, its heavily loss making digital television business.
Leading backers of the company believe ONdigital has lost its battle to compete against satellite and cable operators in the multi-channel television market and should be folded or sold.
The shareholders' hostility follows the leaking of a letter from Granada chairman Mr Charles Allen to British Prime Minister Mr Tony Blair warning that investors' tolerance of ONdigital is wearing thin.
The closure of ONdigital, which delivers digital television through viewers' existing terrestrial aerials, would deal a severe blow to the British government's hopes of switching all viewers to digital services between 2006 and 2010.
At least four of Granada's top 20 shareholders are in favour of immediate withdrawal from ONdigital, according to a poll conducted by the Financial Times.
None of the investors questioned expressed any optimism about the business, which has struggled to loosen British Sky Broadcasting's domination of the market.
Carlton and Granada have ploughed £800 million into ONdigital since its launch in 1998, with a further £300 million earmarked.
It is forecast to break even in 2003, with 1.7 million subscribers.
The service currently has about 1 million customers, compared with BSkyB's 5 million.
PA