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LodgeNet Revamps Guestroom Entertainment with VOD 2.0

LodgeNet Interactive Corporation, a provider of media and connectivity solutions to hospitality and healthcare businesses, announced VOD 2.0, a new, multifaceted in-room entertainment marketing initiative just launched across its room base.
VOD 2.0 represents a major initiative to broaden LodgeNet’s appeal to consumers through a completely redesigned program with new pricing, a broader range of content choices, and an improved user interface, all available in the earliest consumer content window for Hollywood movies. Recent tests of the new VOD program have been encouraging, showing double-digit increases in ticket sales.
The initiative, which will be deployed to LodgeNet's interactive TV (iTV) base of more than 1.6 million guest rooms, comprises four tactical components for Hollywood theatrical offerings:
  • The earliest non-theater movie viewing window for consumers anywhere: Guests who check in to one of LodgeNet’s 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.
  • 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:
    • 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 but actually represent value given their availability months ahead of the consumer market. 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.
    • $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%.
    • "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.
  • Intuitive, user-friendly browsing and buying experience. LodgeNet has redesigned the movie ordering menus to be more compelling and to streamline the buying protocol. 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.
  • More entertainment choices. LodgeNet is expanding its on-demand movie lineup with 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.
"With the TV still the overwhelming platform of choice for guest room entertainment, we are very excited about LodgeNet's pro-active and comprehensive approach to increasing the visibility and value of our in-room movies," says Mark McBeth, vice president information technology North America for Starwood Hotels & Resorts Worldwide. "They are clearly committed to helping our hotels get the most out of their interactive TV technology and we look forward to benefits in not only our bottom line, but overall guest satisfaction."
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