HomeChoice Plans National Roll Out To Rival Cable
On-demand TV and broadband provider HomeChoice is to roll out its service nationally next year, more than quadrupling its coverage to give a footprint approaching the size of the combined UK cable companies.
The national push will build on the success of HomeChoice’s recent relaunch, which saw the firm add several channels to its TV packages, boost the speed of its broadband service and unveil new corporate branding (see HomeChoice Debuts New Packages And Branding).
Starting in 2006, the network expansion will see HomeChoice cover around 10 million homes, extending across the greater London area and into other major cities and conurbations across the UK.
HomeChoice claims to have seen customer growth and increased revenue per customer in recent months, reporting that, within its footprint, the service is adding new pay-TV customers at a faster rate than either cable or satellite.
Funding for the national roll out will be raised with assistance from Credit Suisse First Boston, a leading global investment bank for media, telecom and technology growth companies. The finance firm has been appointed as an adviser to the firm and will now seek to raise new equity funds through new investors.
Commenting on the expansion, Roger Lynch, chairman and CEO of HomeChoice’s parent firm, Video Networks, said: “There’s no doubt about the customer appeal of HomeChoice. We’re now the fastest growing pay TV service relative to our footprint. Our wide channel choice, video on-demand (VOD) and Replay services, together with broadband, telephony and great value for money are a winning combination.
“We are growing our customer base rapidly and we are growing the proportion of our customers who buy all three services from us. More than 90% of our subscribers watch HomeChoice’s VOD channels each month. This gives us great confidence in our decision to launch our national roll-out and bring the attractions of HomeChoice to a much wider UK audience.”
HomeChoice’s service operates via its own equipment installed within BT exchanges. The process, known as unbundling, has been completed in 137 exchanges so far, with penetration currently at 4% within the company’s best performing locations.
The company’s customer numbers have more than doubled to 34,000 since January this year, with an 85% increase in the rate of weekly sales since the launch of a new advertising campaign earlier this year.
HomeChoice: 0800 072 4454 www.homechoice.co.uk