Hugh Williams

Executive Director, Programming, HomeChoice

hugh.williams@HomeChoice.net

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Introducing HomeChoice• Triple play TVoDSL operator based in UK

under the HomeChoice brand

• Footprint is 2.4 million homes passed in London

• 34.000 subscribers

• Planning national rollout for 2006

• 100+ Broadcast Pay-TV and VOD channels

• 1000+ movies available on demand

• 3500+ music videos available on-demand

• Broadband with speeds up to 8Mb

• Proprietary Server-Based EPG & PVR

• Proprietary STB (already running MPEG4)

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Key Operating Statistics

• HomeChoice footprint now at 2.4 million homes passed (10% of UK)

• Telephony take-up of 80% to 90% since launch in November 2004

• Triple play penetration now in excess of 50%

• Average Revenue Per Subscriber currently £430 per year

Launch footprint:• 73 exchanges; 1.29M Homes

Expansion completed in June 2005:• 63 exchanges; 1.14M Homes

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End-to-End Architecture (Simplified)

Cat 5-Or-

802.11G

Texas Instrument Chipset

HOME

BT Phone Line

LAST MILE

7301 ASAM

BT EXCHANGESBACKBONE

Digital Compression System

MV100

HEADEND

( x 3)

VIDEO SERVERS

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HomeChoice Product Offering

Base pack£ 14.99 promotional period (£17.99, thereafter)

1 Mb Broadband Digital TV

- 55 broadcast, on-demand & radio channels - 1000 movies on-demand

Unlimited free evening & weekend calls

Telephony

UPGRADES

2Mb - £5

Up to 8Mb - £12

Digital TV

Big Pack - £10 (+15 channels)

Max Pack - £20 (+35 channels)

SVOD Movie Channel - £5

Sky Sport & Sky Movies- from £22

+ Many Others

Broadband Telephony

Free Anytime calls

- £5 (2Mb / 8Mb)

- £7 (1Mb)

+ +

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HomeChoice Brand

Brand Positioning

Connectivity Entertainment & lifestyle

Corporate-focused

Consumer-centric

ISP Broadcast TV

Multi-channel TV

• Ways of life and consuming are changing dramatically, mainly driven by the advance of digital technologies.

• The concept of home has changed from a simple residence to a networked digital home.

• HomeChoice aims to be a leader in delivering the new possibilities in entertainment, communication and lifestyle services, offered by a networked digital home.

• HomeChoice helps people to better enjoy their time at home.

Overview

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On-demand children’s content gives confidence to parents

On-demand music personalises music television for the first time

On-demand movies offer superior viewing convenience

On-demand TV lets viewers watch their favourite series at their own pace

Discovery, National Geographic, Disney & Turner VOD

New Possibilities for Programming New On-Demand Channels

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Music

Movies

Kids

Entertainment

Genre Channels Viewing Share

#1

# 1

Service Channels Reach

> 53%

2

# 1

# 1

TV On Demand

Replay TVReplay TV for 7 days after broadcasting

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1 – Viewing share average Jan-Dec 2005 figures as at Oct 2005

2 -- Reach as at December 2005

On-Demand Channels Have Leading Positions in Major Genres

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1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

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Scamp BestPerforming

KidsChannel

V:MX BestPerforming

MusicChannel

C-One BestPerforming

Ent.Channel

Top Vod and Channels Share Viewings by Genre

Top Average Monthly Share of Viewings January –December 2005

•In December 2005 each subscriber on average used interactive technology more than twice to find programmes.

•Customers scored functions for watching on demand TV and Movies (including rewind ect) over 7.5 out of 10.

•HomeChoice launched a Reminder button in July 2005. A customer survey conducted in August 2005 revealed that 50% used this function and viewed it as valuable.

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Customer Surveys show that people use and enjoy on-demand content.

In a recent survey of the HomeChoice customer base:

–70% said they regularly used on-demand channel–70% said they regularly used the Replay service–Nearly 50% said they regularly used the on-demand movie service

The on-demand functions of the HomeChoice service scored most highly as the reason for using and enjoying it.