Eleven Sports, a streaming service that aimed to become the "Netflix of sport", is at risk of closure after only four months, following its failure to secure distribution via established pay-TV operators and amid concern over mounting losses.

The Daily Telegraph has learnt that Eleven Sports is considering pulling the plug on its UK operation after the mixed martial arts competition UFC triggered an exit clause on its exclusive deal, which was due to begin in January. Crisis talks with other rights holders are ongoing in hope that part of the business can be salvaged.

The UFC deal, agreed in September, required Eleven Sports to guarantee widespread distribution via established pay-TV operators such as Sky, Virgin Media and BT, as well as its own streaming apps.

However, talks with Virgin Media collapsed last month when the cable operator refused Eleven Sports’ demands on pricing. Meanwhile Sky and BT, which both spend heavily on sports rights for their own channels, have been taking a wait-and-see approach to their new challenger and have not entered detailed dialogue about distributing its coverage.

UFC is this week in emergency discussions about a new deal with its existing partner BT Sport to ensure fans can continue to access coverage.