Arqiva has reportedly said it is unwilling to invest further in Freeview Play because it does not use traditional broadcasting infrastructure.
Freeview is a joint venture managed by Digital UK and counts the BBC, ITV, Channel 4, Sky and Arqiva among its owners.
It is currently in talks for a fresh round of funding in order to develop its Freeview Play service, which is already installed on the majority of smart TVs and aggregates catch-up and on-demand programming.
Industry figures suggest new funding would help British broadcasters retain their prominence on the EPG as the streaming services become more influential.
The Telegraph quotes unnamed industry sources as stating Arqiva is reluctant to invest further as Freeview Play will not rely on traditional broadcasting infrastructure.
Last month it was reported Channel 5 is considering turning down the opportunity to become an investor in Freeview because it cannot justify the cost during the Covid-19 crisis.