LG Electronics and Philips to Integrate LodgeNet Technology
As Communication Solution for New Hotel Television Sets
Creates Ecosystem of “LodgeNet Ready” Properties and Significantly Lowers Costs to Deliver Interactive Hospitality Services
LodgeNet Interactive Corporation (NASDAQ: LNET), the leading provider of media and connectivity solutions to the hospitality industry, announced today at the LodgeNet Technology Symposium in Atlanta, Georgia that it has begun licensing its b-LANTM (broadband local area network) technology to the two leading commercial TV manufacturers for inclusion in their newest high-definition (HD) television displays designed for the hospitality market.
Initial agreements with LG Electronics and Philips Electronics authorize those companies to develop and market HDTVs which include LodgeNet’s communication technology. With this new agreement, the companies will embed LodgeNet’s patented b-LAN technology into their television sets, enabling the delivery of a wide range of interactive content and functionality on a more cost effective basis – including centralized free-to-guest (FTG) channel management, video on demand content and interactive guest services. In addition to the agreements with LG and Philips, LodgeNet is also negotiating with other consumer electronics companies to make its b-LAN technology available.
“Licensing our unique technology is a win-win proposition for hoteliers, our technology partners, and LodgeNet,” said Scott E. Young, President of Hospitality for LodgeNet Interactive. “Integrating our b-LAN technology as part of new television sets will eliminate the cost of purchasing and installing external communications hardware in the room, significantly lowering the total cost of ownership for hoteliers implementing HD television services. This new arrangement will add value to TV manufacturers’ product lines, and will streamline installation, service and support for their hospitality customers. And from LodgeNet’s perspective, these new agreements will result in a significant operating advantage by creating a large base of 'LodgeNet Ready' locations where we can deliver new interactive television services on a significantly improved cost basis.”
LG Electronics, which signed the first license agreement in June, has shipped tens of thousands of hospitality HDTVs with embedded LodgeNet b-LAN technology, according to Richard Lewis, Senior Vice President of Research & Technology for LG Electronics USA Business Solutions, who called b-LAN “a key to reducing total cost of ownership” for hotel operators. “As hoteliers continue looking for ways to both enhance the guest experience and control costs, we are proud to be delivering commercial display solutions today that incorporate the communications technology that has been proven in hotel environments for more than 20 years through slide-in cards and set-back boxes.”
“The current economic climate underscores the need for hospitality solutions that make sense not only for the guest, but also for the hotel in terms of total cost of ownership,” said Tom Parham, Senior Vice President and General Manager of Philips Hospitality Americas, a division of Royal Philips Electronics. “Having LodgeNet’s b-LAN technology integrated in our televisions allows Philips to better serve the hospitality industry by reducing overall system costs and increasing ease of use.”
LodgeNet’s b-LAN technology is the most widely deployed, cost effective communications solution enabling TVs to be centrally managed as networked devices rather than unconnected stand-alone units. This unique technology allows hotels and providers to manage TV configuration without a visit to each room and can enable a variety of other applications requiring communication to the TV set.
Representatives from Philips and LG will be participating in panel discussions at the 2nd Annual LodgeNet Customer Technology Symposium, being held on October 27-29 at The Ritz-Carlton Buckhead in Atlanta, Georgia. The event – “Technology Innovation and the Guest Experience: New Opportunities and New Business Models” – will feature presentations and panel discussions focusing on the operational, financial and guest service implications of current and emerging hospitality technologies. Attendees of the event will include executives from major hospitality brands, hotel owners and management companies.