LodgeNet Re-Energizing In-Room Entertainment With New "VOD 2.0" Initiative

LodgeNet Re-Energizing In-Room Entertainment With New "VOD 2.0" Initiative

Expands Guest Value Proposition with Tiered Pricing for Hollywood's Earliest Available Consumer Viewing Window

SIOUX FALLS, S.D., May 31, 2011 /PRNewswire/ -- LodgeNet Interactive Corporation (NASDAQ: LNET), the leading provider of media and connectivity solutions to hospitality and healthcare businesses, today announced a new, multifaceted in-room entertainment marketing initiative just launched across its room base.

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"VOD 2.0 is about reinventing our entertainment offering in hotels and offering customers a vastly improved value proposition," said Derek White, President of LodgeNet's Interactive & Media Networks division. "It represents a major initiative to broaden our appeal to consumers through a completely redesigned program with new pricing, a broader range of content choices, and an improved user interface, all available in the earliest consumer content window for Hollywood movies. Recent tests of the new VOD program have been encouraging, showing double-digit increases in ticket sales. We feel that these important changes will be embraced by our loyal customers and introduce an entirely new audience to LodgeNet as well."

White explained that the initiative - which, in partnership with all major hotel brands, will be deployed to LodgeNet's interactive TV (iTV) base of over 1.6 million guest rooms - comprises four tactical components for Hollywood theatrical offerings:

1) The earliest non-theater movie viewing window for
consumers anywhere. "Guests who check in to one of
our partner hotels can see best-selling Hollywood
releases up to 60 days before release on DVD or home
'on demand', and up to 90 days before they get to
Netflix, Redbox or iTunes," said White. "This is an
incredible differentiator for hotel-based
entertainment and a tremendous value and convenience,
but something of which travelers are almost entirely
unaware."
2) Superior consumer value from a tiered pricing
structure. Recent third-party studies confirmed that
cost was a significant factor preventing guests from
ordering an in-room movie. In response, LodgeNet has
developed a three-tier movie pricing structure
designed to offer options for value-conscious guests
and maximize per-title revenues:
The latest Hollywood content in the exclusive hotel window.
These premium titles, many of which are still in theaters, will
be in LodgeNet's upper pricing tier, representing exceptional
value given their availability months ahead of the consumer
market. "Even if an individual could buy a hotel-window title
to watch in their home - the so-called 'Premium VOD' - he or
she would pay upwards of $30, which is nearly double what that
a) title costs on the LodgeNet system," said White.
b) $10.99 and Under Value Pricing for Hollywood titles outside the exclusive hotel window. These titles - which comprise the majority of the LodgeNet system movie lineup - are being re-priced downward by an average of 35%.
"Daily Deals" for select titles. A rotating selection of recent
Hollywood titles will be offered to guests for as low as $4.99
c) per title.
3) Intuitive, user-friendly browsing and buying
experience. LodgeNet has redesigned the movie
ordering menus to be more compelling and to streamline
the buying protocol. "In today's world of media
saturation and time deficits, it's important that
guests know exactly what's available - and when they
see something they like, to be able to access it
quickly and easily," White said. "For example,
systems at many of the major hotel brands will begin
utilizing MOTO (Menu-On-Turn-On), placing consumers
in the control cockpit of the Interactive
Entertainment Center when they first click on the TV
set."
4) More of the entertainment choices you want.
LodgeNet is expanding its extensive on demand movie
lineup with considerably more choices in shorter form
TV programming, children's content, health & fitness
shows and sports programming. For example, LodgeNet's
Live Sports service offers guests exclusive
professional, college, and other sports events that
are not available on local broadcast or cable
networks. "Complementing the widespread use of home
DVRs and mobile devices, our paid 'Just Missed TV'
business continues to grow," said White. "Convenience
is still king, and the big screen will always trump
small screens - assuming our content is appropriately
priced and matches the length of time guests have
available to watch."

"With the TV still the overwhelming platform of choice for guest room entertainment, we are very excited about LodgeNet's pro-active and comprehensive approach to increasing the visibility and value of our in-room movies," said Mark McBeth, Vice President Information Technology North America for Starwood Hotels & Resorts Worldwide. "They are clearly committed to helping our hotels get the most out of their interactive TV technology and we look forward to benefits in not only our bottom line, but overall guest satisfaction."

About LodgeNet

LodgeNet Interactive Corporation is the leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest-based businesses. LodgeNet Interactive serves approximately 1.8 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company's services include: Interactive Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and Advertising Media Solutions. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks. LodgeNet Interactive is listed on NASDAQ and trades under the symbol LNET. For more information, please visit www.lodgenet.com.

LodgeNet and the LodgeNet logo are registered trademarks of LodgeNet Interactive Corporation.

SOURCE LodgeNet Interactive Corporation

Photo:http://photos.prnewswire.com/prnh/20080115/AQTU120LOGO
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LodgeNet Interactive Corporation

CONTACT: Ann Parker, Director of Corporate Communications of LodgeNet Interactive Corporation, +1-605-988-1000, communications@lodgenet.com

Web Site: http://www.lodgenet.com

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