This is part two in a series on Entertainment on Demand. Click here for part one, 'The changing landscape of entertainment on demand.'
By adapting to provide specific entertainment opportunities that are unobtainable by other means, Entertainment on Demand has been able to stay relevant and in the hotel space, especially in high-end and family properties. According to Oz Eleonora, chief revenue officer for Sonifi Solutions, families and high-end business hotels continue to be the largest consumers of Entertainment on Demand content, specifically for first-run movies still unavailable to consumers.
“Traditionally, hotels have been one step ahead of consumers in terms of technology, but now hotels are playing catch up to the home,” Eleonora said. “Entertainment on Demand is one way hotels can stay one step ahead, and guests are still buying movies.”
In fact, according to Eleonora, Sonifi earned more revenue per room in 2014 than in 2013. Entertainment on Demand as a whole has expanded to encompass more than just Video on Demand movie offerings, and guests now have more options when searching for in-room entertainment.
According to Eleonora, hotels and entertainment providers look at what guests are using in their homes and evolve to offer that in the guestroom. “The question isn’t who will and who won’t use Entertainment on Demand, but what format will they use it in and how much,” Eleonora said.
Scott Hansen, the director of guest technology for Marriott International, says the model is most sustainable in higher-end brands, such as Ritz-Carlton, as the price point can sometimes be prohibitive for guests at lower-end properties.
“Guests at resorts also spend more on entertainment than guests at other properties, and Entertainment on Demand can be successful there,” Hansen said.