Raymond Snoddy on Media: Homechoice must close credibility gap

A 1200-site outdoor campaign for TV service Homechoice breaks in the London area this month. It follows an extensive commercial TV campaign in September that ran into the early part of October.

Nobody is saying how much it cost, or indeed how successful it was.

But top agencies such as Mother were involved in determining how the personality of the brand should develop and how it should be communicated.

In fact, in terms of the number of viewers the company has signed up after more than a decade of uncertain existence, it could be a candidate for one of the most expensive advertising campaigns of all time in relation to the likely gain. Yet Video Networks and its communication and entertainment offering refuse to go away.

The campaign has centred on the Mother-inspired concept of an 'anti-hero', who appears in exotic situations such as swimming with dolphins. Naturally, he would 'rather be at home' with on-demand TV, fast broadband and 1000 movies to choose from.

The most remarkable thing about the ads is that they are there at all, and that this firm is still trying to take on the big battalions - BSkyB, BT and the about-to-be enlarged NTL - as if it were a major player.

Many of those involved in Homechoice have retired hurt from the struggle.

The fact that Video Networks remains in the frame at all is largely due to one investor - Chris Larsen. He was present in one of the original 'garages' with Bill Gates at Microsoft. Larsen obviously believes in the product and has the money to back his hunch.

Those who subscribe to Homechoice appear to be very positive about it, but the company has a credibility problem. By January of this year, after an investment of untold millions, Video Networks had a mere 15,000 subscribers. Things have obviously improved since then, possibly considerably. In fact, there would be something wrong with the power of advertising if there had not been a considerable leap forward, given that many people find the product rather compelling.

But Video Networks will say no more than that things are going according to plan, and the extension of its service from London and Stevenage to other parts of the country is on the cards next year. The company's offering is now available to 2.4m homes in the London area, and it claims none of the big players can match its content.

For 拢17.99 a month, Homechoice offers a basic package that includes 1MB broadband, digital TV, video-on-demand and free evening and weekend local and national phone calls. Subscribers can pay extra to get up to 8MB broadband, and the personal video system provides about 100 hours of shows such as Coronation Street and East-Enders broadcast over the previous seven days.

At the moment, the 15,000-plus subscriber base, combined with total interactivity, would make a very decent test market for new products. Video Networks also has the capacity to run specialist, local TV channels, and provides blocks of flats with the digital infrastructure required for modern communications.

It is talking about making its service available to between 10m and 12m homes.

The company is both plucky and interesting, but the time to demonstrate real results is drawing nigh. To be taken seriously, the tiniest rival to BSkyB, BT and NTL will have to persuade a large number of people to subscribe.

Realistically, Video Networks will have to announce as soon as possible that 50,000 - better still, 100,000 - homes have subscribed.

30 SECONDS ON... HOMECHOICE

- Homechoice launched in September 2000 with 拢65m to spend on marketing to the end of 2001.

- Its initial offering suffered from reports of poor picture quality and the dotcom crash slowed expansion. The company cut 300 jobs in 2002.

- Parent Video Networks relaunched the company in May 2004 following changes at BT, which allowed it to put its own equipment in exchanges.

- Until recently, its only video-on-demand rival was Hull-based Kingston Communications.

- Telewest launched a video-on-demand service in Cheltenham and Gloucester in June, and BT will launch a TV set-top box offering the service next year.

- It is expected BSkyB will bid for Homechoice after completing a 拢211m purchase of Easynet. The media giant's first move into TV delivery over phone lines came via a deal to offer Sky channels on Homechoice last year.