At a time when the internet was nothing but a distant dream and pressing the red button just turned the television off, Teletext was the king of instant information.

But yesterday, 35 years after the service first flickered into life, it was announced that the news and information provider, one of the last technological bastions of the pre-internet age, will be closed prematurely.

Associated Newspapers, the publisher of the Daily Mail and a division of Daily Mail and General Trust (DMGT), had planned to close Teletext to coincide with the switchover to digital television in 2012. But the company said that the growth of the internet, as well as recent poor financial performance, had pulled the service into the red. Associated said that it would close Teletext two years ahead of schedule, in January, citing the poor economic climate and dismissal by Ofcom, the communications regulator, of the prospect of future state support for the venture.

The company said: “As anticipated, the continued fragmentation of television audiences and the growth in the use of the internet has resulted in a significant reduction in the audience and the volume of commercial activity generated by the television services.

“In addition, Ofcom has indicated that it is not persuaded of the need for public intervention in the delivery of a public commercial Teletext service beyond 2014 and this has also contributed to the decision to discontinue the public service. Current economic conditions have accelerated this process, leading to today’s announcement.”

Originally known as Oracle, the service was first transmitted on ITV in 1974, with the BBC launching its own Ceefax in the same year. In 1993 Oracle closed and the franchise was awarded to Teletext Ltd.

News, music reviews and puzzles were some of the most popular offerings, leading to the business posting profits of £30 million, on revenues of £80 million, in its 1990s heyday.

Mike Stewart, the group managing director of Teletext, said that the service had been loss-making for three years after seeing its revenues halve since 2003. He said: “Usage may be half its peak but we still have 11 to 12 million viewers a week, and most internet businesses say you could make plenty of money with that. But we can’t get the economics right.

“It’s been a difficult transition from analogue to digital. We need five times the amount of digital spectrum just to match our analogue service. Given this is a service invented in the 1970s, Teletext has proved capable of developing a variety of services, but it is difficult to get away from the fact it was invented as long ago as then.

“We introduced services before the World Wide Web: fast text teasers, or hyperlinks, or banner ads. There is still a place for this sort of service, but it will evolve.”

The company started talks with its 70 staff at its West London headquarters yesterday. The brand will live on through its profitable travel websites as well as the broadcast of Teletext Holidays on the Freeview platform.

The BBC, whose Ceefax attracts a weekly average of 5.5 million users, said that it will continue to provide analogue Ceefax until the digital switchover is completed.

A spokesman said: “However, as 90 per cent of the UK is already using digital television, the BBC Red Button service is now providing digital text services as an alternative to Ceefax.

“The service also provides 24-hour news and sports information and offers audiences enhanced video content around large events such as Wimbledon, Glastonbury and The Proms and is accessed by 10 million people each week.”

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