On Command Beta Testing Small Hotel Video-On-Demand System

DENVER— Following plans to “address the void in providing on-demand entertainment services to the small hotel market” last June, On Command Corp. has installed its small hotel video-on-demand platform in three beta sites. The MiniMate platform is an extension of On Commands Roommate platform, but at 50% of the per room cost. Roommate was launched in fourth-quarter 2001 and is operating in more than 43,000 hotel rooms. “Its extremely important to grow our account base by opening up new markets,” said Chris Sophinos, president/CEO of On Command. “MiniMate enables us to reach a market that has long been ignored by in-room entertainment providers. We feel there is a compelling revenue model that will enable small, limited service properties to increase bottom line with the addition of video-on-demand services.” The company estimates there are two million hotel rooms in the U.S. that do not offer video-on-demand entertainment to guests. “MiniMate opens up an entire new world of revenue opportunity for smaller hotel properties,” said Tad Walden, vp/marketing. “The early results show there is clearly a demand for in-room movies from small hotel guests. Preliminary RERs are in the $.65 per room, per day range. Better than we had forecasted.” The platform operates on On Commands new hotel customized menu system, which enables the television power-up channel and subsequent menu categories to be designed to reflect the hotels brand look and feel. “We are very excited about being able to provide on-demand entertainment to our hotel guests,” said Mike LaMalfa, owner of the Holiday Inn Express LaMalfa Center in Mentor, OH. “In such a short period of time, we have already experienced impressive results. The fact that our guests are purchasing the products speaks for the level of satisfaction they have with the service. The addition of video-on-demand services is a definite competitive advantage for our property.”