Graff dips into Euro TV

By ADAM DAWTREY

New York-based cable programmer Graff Pay-Per-View has made its first move into the European TV market by acquiring 25% of the U.K. company Home Video Channel Ltd.

Option included

Graff paid HVC's three owners about $ 3.5 million for the stake, which includes an option to buy out the remainder of the company within the next two years.

HVC runs the Adult Channel, a soft-porn station on the Astra satellite with 135,000 subscribers, and the Home Video Channel, a B-movie service available only on cable, which has 60,000 subscribers.

European expansion

Graff, which operates two similar channels in the United States, Spice and Cable Video Store, along with a PPV service, will back HVC's plans to expand into the rest of Europe, and particularly into Scandinavia.

"We'll do more in Europe faster by operating together than we would separately," explained HVC chief executive Chris Yates.

The company's gross revenues currently stand at about $ 7 million a year, and the expansion will be funded out of cash flow.

'Minidramas' planned

HVC also plans to start producing its own "minidramas" and game shows for the Adult Channel.

"There will be synergies in production and joint buying between HVC and Graff ," said Yates.