IPTV
By David W. Garrison, CEO, iBAHN
IP platform technologies, IPTV in particular, are amongst the hottest topics in the hospitality industry as they are rapidly transforming in-room entertainment, information systems and the means through which hoteliers and properties communicate and interact with guests. Is IPTV the inevitable future of in-room entertainment and information systems? What is it about IPTV technology that delivers sustainable revenue opportunities both now and in the future? The question hoteliers should be asking now is not if IPTV is the future, but why. History has demonstrated that guest technology demands are driven by the experiences travelers have at home. As consumers make the switch to IPTV services at home, technology manufacturers are fueling the demand by producing Internet-enabled TVs, gaming consoles and other
The Ideas In Brief: a portion of the marketing budget in marketing R&D
• Take risks, and invest
in moreestablished communication disciplines
• Take lessons from best practices
of what can be achieved with the resources available, and keep track of your brand’s digital heritage
• Have a clear understanding
time-shifting devices, like Roku and TiVo, that allow users to stream Internet content via the TV. It won’t be long before guests start demanding the same kind of technology access when they are on the road. Statistics show that consumers want to be connected wherever they are with access to Internet-based
travelers now represent one in four guests visiting hotels and those guests have demonstrated a notable preference for accessing free and paid content via the Internet versus paying for traditional pay-per-view
services and applications.
video on demand (VoD).
What is the primary driving force behind this growth?
Amid the proliferating content and escalating guest
Content. Nearly unlimited access to video, movie
demands, hoteliers are pressed to deliver what
and music libraries, real-time audio, video and data
is quickly becoming a new – and much higher –
- anytime, anywhere and on any device. NextGen
standard of in-room entertainment. However, there
iBAHN® is the world’s most reliable and respected provider of digital information and entertainment for the hospitality industry.
IPTV
is a significant struggle to justify the bottom line
Overall, the hospitality industry is still in the
cost of implementing these new technologies. Even
process of discovering the full power of IP platform
in a thriving economy, hoteliers may have trouble
technology and its ability to offer increased content,
justifying the expense to upgrade a property’s cabling
interactive services, and targeted advertising within
infrastructure to support IPTV solutions for the sole
the guestroom – not to mention the benefits of cost
purpose of in-room entertainment. It comes as no
management and other service applications available
surprise that properties are really facing difficulties
outside of the guestroom. There are a few who are
now, given the current economic environment.
reaping the benefits of using IP platforms for more
This struggle to justify the bottom line cost is partially due to a misperception, or rather an incomplete perception, of IPTV technology and the full scope of capabilities that IP platform solutions can deliver. IPTV is merely one piece of what is designed to be an extensive solution reaching well beyond the confines of the guestroom. IP-based technology is far more than content-driven entertainment and is more than a fleeting trend or a solution fitting only today’s technology needs. It connects sellers with buyers – hoteliers with guests. It provides productivity tools so guests can access their desktop remotely, allows for hotels to push customized messaging, promotions and IPbased applications. It is a platform – a foundation
There are more than 33 million IPTV subscribers worldwide. • The Americas regions experienced the fastest IPTV growth rate with 58% more subscribers at the end of 2009 than the previous year. • Reports show more than 5.6 million IPTV customers in the US alone. • In a recent study conducted by Arbitron and Edison Research, data showed that the Internet surpassed TV as the “most essential” medium. When asked which they would choose if they must - to never again watch television or never again access the Internet - more people chose TV as the medium they would eliminate.
that provides the flexibility and scalability required to endure the evolution of technology with the capability to support both current and future developments to in-room entertainment solutions as well as other IP-based communications, services and applications. Because it uses an IP network, hoteliers, like consumer Internet providers, can take advantage
effective, unobtrusive, two-way communication with guests to improve satisfaction, increase GSS scores, and drive repeat business.
of the power of a converged network to deliver data
While the IP platform offers extensive capabilities and
and content to any screen – laptop, smartphone,
revenue opportunities for properties in addition to in-
TV, etc. This presents an opportunity for hoteliers to
room entertainment, it should be recognized that in-
deliver services to a wider range of devices and drive
room entertainment and increasing guest satisfaction
additional revenue streams to their properties.
TO LEARN MORE ABOUT iBAHN IPTV, VISIT WWW.iBAHN.COM OR CALL 1-866-415-2843 TODAY Corporate Headquarters | 10757 S River Front Pkwy, Ste 300 | Salt Lake City, UT 84095 | 1.801.563.2000
IPTV
are still critical elements to the overall success of
back office management, F&B, virtual desktop and
the solution. Given the growing number of NextGen
customized guestroom messaging to name a few
travelers, there is little question
applications. IP platform technology is not the future
as to whether or not guests will expect properties to offer IPTV, many of them already demand it. Guests currently do and will continue to get the content they want through the Internet – regardless of whether
simply because it delivers in-room entertainment. It is the future because it is the only scalable solution that allows enough flexibility to integrate with other hospitality technology solutions and fulfill both the near term and future requirements of hotel guests
or not that content is made accessible by the hotel through the guestroom TV via an IP platform solution.
and properties.
Guests will travel with laptops and other mobile devices that afford them the ability to get the content they want. There is an enormous opportunity to capitalize on this demand, make it easy for these NextGen travelers to leave their laptops or other devices at home and deliver the limitless world of the Internet through the guestroom TV – entertainment, remote desktop access, hotel services and more. Technology, especially entertainment technology, is dynamic and the evolution is rapid. IPTV is already
Select US hotels that have ventured into this new IPbased technology structure have demonstrated an ability to gain revenue and lower costs by: • Using the IP platform to promote current movie selections thus experiencing a 71% increase in movie take rates over the previous month. • Going ‘green’ and moving in-room paper guides and information online to the IP platform, identifying more than $250,000 in savings annually for the property. • Notifying guests online of a program called “Lights Out” in support of Earth Hour which then won the property the prestigious annual “Boston Green Award.”
part of mainstream life for millions of people. Hoteliers who are waiting to see whether or not it is, in fact, the future of in-room entertainment have already waited too long. Hoteliers should now be investigating which IP platform technology
iBaHn’s Integrated digital Solutions Platform
delivers the most comprehensive solution to
• Guest Experience Solutions
support present day IPTV needs, future IP-based
• IPTV Solutions
in-room entertainment systems, as well as other
• Digital Merchandising
technologies and applications essential to the day to day operations of the hotel. This would include
Solutions
• Productivity Solutions • Data Security Solutions • Connectivity Solutions • HD Content Solutions • Bandwidth Solutions • Mobility Solutions • Global Brand Solutions • Conference Solutions
synergies of a single network integrated with
TO LEARN MORE ABOUT iBAHN IPTV, VISIT WWW.iBAHN.COM OR CALL 1-866-415-2843 TODAY Corporate Headquarters | 10757 S River Front Pkwy, Ste 300 | Salt Lake City, UT 84095 | 1.801.563.2000