Future Of VOD May Be Time-Shift

-- Hotels, 6/1/2008

Guests traveling with computers these days can watch pretty much whatever they want, without ever flipping on the guestroom TV.

The major networks are putting more shows online, making them available for free download, sometimes within hours of originally airing them. Movies can be downloaded in their entirety in a matter of minutes. Even major sports leagues have taken to streaming games live over the Internet. And then there’s Singbox, to say nothing of the YouTube phenomenon.

So the obvious question: Does the traditional video-on-demand model that made LodgeNet Interactive a global power have a future in hotel guestrooms? The VOD model will definitely require a tweak, but LodgeNet believes it can remain a viable revenue center thanks to time-shift technology.

LodgeNet has deals in place with NBC, CBS and Showtime that allow recent episodes of popular shows, like “Law & Order” and “The Office,” to be purchased by guests the same way they purchase pay-per-view movies. It can’t replace entirely the business lost by guests watching on their computers, but it is stemming the flood a bit. “There are some travelers that are using some Web-based streaming services—to deny that would be foolish,” says Dave Bankers, LodgeNet’s senior vice president for products and technology development. “On the other hand, the ability to watch content on your television, with the convenience of a remote control in a high-resolution format, is still a significant valued service for guests.”

However, Ganesh Basawapatna, a consultant with Pronghorn LLC and former senior vice president with OnCommand Corp., has doubts about the technology’s future. “More and more people are traveling with their PCs and their Slingboxes, which means more and more people have the capability to watch whatever they want on their PC screen,” he says. “Time-shifting is not going to be a major issue as the various networks put more and more of the popular programming on the Internet.”