LONDON — Video Networks is reportedly poised to raise at least £100 million ($150 million) in a deal with an unnamed private equity partner, cash that will help finance the video-on-demand company’s roll-out.
Like rivals Yes TV and Filmgroup, Video Networks appears to have pulled back from a stock market floatation, in its case an IPO that was supposed to raise as much as $1.5 billion.
All three VoD companies are expected to delay going public until the stock market becomes more favorable to new-media floats.
Video Networks trades under the brand HomeChoice and is piloting in London with 2,000 households. Its key programming is Warner, Buena Vista and Columbia TriStar product. Warner and Buena Vista hold minority stakes in the company, as they do in Yes TV.
Video Networks uses British Telecom’s ADSL technology, which remains too expensive to make a full-on national rollout viable. Next year, deregulation is expected to help cut the cost of ADSL.