Skip to main content

Hospitality TV Operators Embracing IPTV

Over 11 million hotel rooms and 1 million airline seats are potential new IPTV entertainment applications, according to the latest market study by MRG, Inc.

Hotels and Airlines alone will account for a $1.9 billion global market in 2012, indicating that for most hospitality applications, analog video use is likely to quickly become extinct.

MRG says that both In-Room Entertainment (IRE) and In-Flight Entertainment (IFE) markets show a sharp shift in user expectations.

"While respondents indicated that IPTV may be too expensive for the low-end market, the study finds that there is a substantial and growing need for IPTV to serve the mid- and high-end of the hospitality market. This has gone from a nice-to-have to a must-have situation," says Mike Galli, IPTV Analyst at MRG.

While many in the IPTV industry may consider the hospitality opportunity to be insignificant, MRG found that it is very important -- with some IPTV suppliers reporting that it now represents 25 percent of their total revenue.

There are specific opportunities in a variety of hospitality segments including hotels, dormitories, hospitals and aircraft, and this report helps to clearly identify where they are in each segment.

One key benefit of IPTV is superior remote operation and diagnosis -- meaning double- or triple-play systems can be monitored from off-site, resulting in huge OpEx savings for the Hospitality Operator.

For example, one hospital IPTV system frees nurses from explaining to patients how to use the system. Other examples show how hotels using both VOD systems and e-com are able to generate far more revenue from e-com and advertising than from Pay-per-View.

"Simplicity also is key to improving user enjoyment," states Mr. Galli. "Since guests are there for only a short period, they don't have time to learn a complex system, but want to get interactive services like those at home."

As consumers receive improved video services at home, Hospitality Operators are finding there is a need to upgrade hospitality systems, much of it resulting from HD and VOD improvements in 2008-2009.

Popular posts from this blog

AI's Handicap Isn't Chips, It's the Power Grid

We know artificial intelligence consumes huge amounts of energy. The power grid is now a major concern in enterprise technology strategy, and it's reshaping decisions that used to belong entirely to the CIO. For three decades, capacity planning meant negotiating with a cloud provider or a colocation vendor. Today it increasingly means understanding utility interconnection queues, local zoning battles, and the willingness of hyperscale operators to build faster than the grid can comfortably absorb. New research from Synergy Research Group puts deep market data behind a trend every large enterprise buyer has already felt: the constraints are real, but the AI  infrastructure build-out is not slowing down. Electric Power Grid Market Development Synergy's tracking shows that total U.S. data center capacity is on pace to double within the next three years, even as power availability and local opposition create genuine friction for new projects. It's a striking signal that demand ...