Reports say that Homechoice has held talks with mobile companies Vodafone and Orange as well as internet services provider Tiscali, which is understood to be the frontrunner in the race to acquire the network.
At the end of last year, Homechoice signalled that it could be vulnerable to a sell-off unless it secured new funding. The network is headed by former Microsoft executive Chris Larson.
In November 2005, Homechoice-owner Video Networks appointed investment bank CSFB to examine the strategic options for the service, which has an estimated 45,000 customers in the UK, compared with Sky's 8.1m and NTL/Telewest's 5.5m.
BSkyB is also reported to be one of the firms interested in the video-on-demand business. It was linked to Homechoice last year after its £211m acquisition of Easynet.
Sky could use the company for its own plans for video-on-demand and broadband. Sky raised just over £1bn by selling a three-part bond last year which could be used for acquisitions in the broadband area.
Last month BSkyB bought online site Mykindaplace.com, which it could merge with Homechoice to create a larger online presence.
Homechoice would not comment on the speculation regarding a potential bidder.
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