Hongkong Telecom's interactive television service (iTV) has 80,000 customers with 20,000 more waiting to be connected, according to the company.
It sees the service, which delivers films and games 'on-demand' into homes through the telephone lines, as a key growth engine as traditional phone business comes under increasing competitive pressure.
Telecom's interactive multi-media services division chief executive Allen Ma said 1.2 million homes had been connected to the high-speed fibre-optic network necessary to deliver the service. He hoped this would reach 1.5-1.6 million by the end of the year.
Of the homes connected, just 600,000 were considered to be in the 'addressable market', Mr Ma said.
This market would grow as new applications, content and electronic commerce were introduced.
Telecom chief executive Linus Cheung Wing-lam said the rates of monthly iTV useage were 'on the increase'.