Five new exchanges were added in December, including Stevenage in Hertforshire, its first exchange outside the M25.
The first new homes will come online in March, with the remainder being passed in June.
Roger Lynch, chairman and chief executive of Video Networks, said: "We are very pleased with the initial take-up of the HomeChoice service. The concept of broadband-delivered TV and video-on-demand is very new to the entertainment-buying public and to already have 20% market share of new DSL subscribers in our coverage area so soon after our launch is a great achievement. This gives us the confidence to significantly expand our network."
HomeChoice, which currently has 15,000 subscribers, provides on-demand programmes spanning comedy, drama, music soaps, pay-per-view movies, home shopping and a broadband internet service and telephone service.
Home Choice recently launched a £2m marketing campaign to push its service and 80+ digital channels. The creative builds around the "Demand More" tagline and focuses on how HomeChoice offers more than 1,000 on-demand movies, and channels including Sky Sports and Sky Movies, TV programmes on demand and a replay service.
Last week, rivals Telewest and NTL announced they were launching their own video-on-demand services to rival HomeChoice.
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