On Command Announces VOD Solution for Small Hotel Properties
Reprinted from an On Command press release:
DENVER, June 25 /PRNewswire-FirstCall/ — On Command Corporation, the leading provider of in-room interactive entertainment for the hotel industry and its guests, announced today that it has developed a video-on-demand solution for small hotel properties, of which approximately 2,000,000 rooms are unserved in the United States alone.
The MiniMate platform is an extension of On Command’s Roommate(TM) platform, but at 50% of the per room cost. Roommate was launched in the fourth quarter of 2001 and is operating in more than 43,000 hotel rooms. Hotel partners can provide their guests with an unparalleled array of on-demand, pay-per-view entertainment options. This new platform will provide a fully digital solution that, depending on system configuration and content length, can offer up to 150 programming titles to the hotel guest through the in-room television system.
“With an estimated buy rate per equipped room per month similar to that currently experienced, it is estimated that the hotel could receive a return on its investment in excess of 20%,” said David Simpson, senior vice president of engineering for On Command. “This is an exciting technology breakthrough.”
Because of its small size, the MiniMate platform has reduced cooling requirements, consumes less power, and requires less space for installation than standard platforms. However, its scalable design enables On Command to add additional products and services as demand increases.
A key benefit of the platform is that it will operate On Command’s new hotel customized menu system. This menu system enables the television power-up channel and subsequent menu categories to be designed to reflect the hotel’s brand look and feel. It also includes an entire menu section devoted to hotel services, which enables the hotel to market its own services to in-room guests.
“We’re very excited about the opportunity to provide smaller hotels with a method of generating new revenue,” said Larry Smith, senior vice president of sales and distribution for On Command. “By offering on-demand movie entertainment, these hotels can increase guest satisfaction, and the value proportion is so powerful that for many 100-room properties a 1% increase in occupancy will pay for the capital investment.”
Beta testing is scheduled for fourth quarter 2002.