LodgeNet Re-Energizing In-Room Entertainment With New "VOD 2.0" Initiative

1) The earliest non-theater movie viewing window for consumers anywhere.  "Guests who check in to one of our partner hotels can see best-selling Hollywood releases up to 60 days before release on DVD or home 'on demand', and up to 90 days before they get to Netflix, Redbox or iTunes," said White.  "This is an incredible differentiator for hotel-based entertainment and a tremendous value and convenience, but something of which travelers are almost entirely unaware."  

2) Superior consumer value from a tiered pricing structure.  Recent third-party studies confirmed that cost was a significant factor preventing guests from ordering an in-room movie.  In response, LodgeNet has developed a three-tier movie pricing structure designed to offer options for value-conscious guests and maximize per-title revenues:

 a)

The latest Hollywood content in the exclusive hotel window.  These premium titles, many of which are still in theaters, will be in LodgeNet's upper pricing tier, representing exceptional value given their availability months ahead of the consumer market.  "Even if an individual could buy a hotel-window title to watch in their home – the so-called 'Premium VOD' – he or she would pay upwards of $30, which is nearly double what that title costs on the LodgeNet system," said White.  

 b)

$10.99 and Under Value Pricing for Hollywood titles outside the exclusive hotel window. These titles - which comprise the majority of the LodgeNet system movie lineup - are being re-priced downward by an average of 35%.

 c)

"Daily Deals" for select titles. A rotating selection of recent Hollywood titles will be offered to guests for as low as $4.99 per title.

3) Intuitive, user-friendly browsing and buying experience.  LodgeNet has redesigned the movie ordering menus to be more compelling and to streamline the buying protocol.  "In today's world of media saturation and time deficits, it's important that guests know exactly what's available – and when they see something they like, to be able to access it quickly and easily," White said.  "For example, systems at many of the major hotel brands will begin utilizing MOTO (Menu-On-Turn-On), placing consumers in the control cockpit of the Interactive Entertainment Center when they first click on the TV set."

4) More of the entertainment choices you want.  LodgeNet is expanding its extensive on demand movie lineup with considerably more choices in shorter form TV programming, children's content, health & fitness shows and sports programming.  For example, LodgeNet's Live Sports service offers guests exclusive professional, college, and other sports events that are not available on local broadcast or cable networks.  "Complementing the widespread use of home DVRs and mobile devices, our paid 'Just Missed TV' business continues to grow," said White.  "Convenience is still king, and the big screen will always trump small screens – assuming our content is appropriately priced and matches the length of time guests have available to watch."