Mark Cuban invests as LodgeNet goes mobile5 Oct, 2011 By: Andrew Sheivachman
As pay-per-view usage by hotel guests has dropped and an increasing number of guests now bring their own content-rich devices on the road, LodgeNet has been on the wrong side of shifting guest expectations for years. But the tide may be turning for the video content behemoth — billionaire media guru and Dallas Mavericks owner Mark Cuban has invested in the company, which has now partnered to bring cloud-based video content to hotels around the globe.
Last week Cuban spent $2.3 million to buy shares in Lodgenet and now owns about ten percent of the company, according to USA Today. Cuban bought the stock close to the 52-week low in LodgeNet share price, saying he has confidence in the company. LodgeNet currently has the lowest EV/EBITDA ratio among movie and entertainment companies, according to Financial News Network Online.
His stock purchase may prove to be prescient, as LodgeNet annouced this morning it has joined the forward-looking Digital Entertainment Content Ecosystem (DECE) coalition. DECE is comprised of 75 comanies that are pushing a new cloud-based content ecosystem, UltraViolet, which allows consumers to purchase and access digital video content on the Web. Hotel guests will be able to access UltraViolet through LodgeNet's new Envision iHDTV platform.
“LodgeNet’s unique marketplace footprint and advanced services offer the opportunity to present UltraViolet to millions of potential users – many of whom are high-volume media consumers and likely to be early adopters as well,” said Mark Teitell, GM of DECE. “I believe LodgeNet’s expertise in marketing media to consumers who are on-the-go will be an important complement to the impact of other UltraViolet retailers, putting UltraViolet in a very attractive position for next-generation digital programming sell through.”
LodgeNet also released new data on how hotel guests are consuming media during their stay. LodgeNet found that its Envision platform is being used three times as much as their previous iTV platform, and that the average hotel guest spends three hours a day watching guestroom television. Only 1.5 percent of travelers, however, link a personal media device to enjoy content on their guestroom display.Topic : TV, iTV, LodgeNet, PPV
External Source : USA Today, Financial News Network, Sacramento Bee, LodgeNet