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LodgeNet Interactive Corp Presents At J.P. Morgan TMT Conference (Transcript) (Transcript)

We take that high def system, which by itself is already increasing our revenues by about 60% from the revenues we are generating in our analog platforms to high def and now you connect that beautiful screen to a pipe to the internet and now it's instant information about what is happening in the hotel, at the brand, airport, flight arrivals, departures, restaurant reservations, all those types of things. That really is an opportunity to bring real-time connectivity into the television screen and hotel room is the display device.

Then the other factor with our Envision, so Envision is our brand name for that internet connected interactive television device. And then on top of that next layer up, we announced at the end of last year kind of our four-screen strategy. So it's no longer just communicating with the guest on the flat panel television room but it's also whatever screen that they are using. So whether it's your smartphone device or tablet or laptop, all of those screens are now coming together in Envision. So hotels can publish create the content, once published, multiple plays, et cetera.

Monica DiCenso

You mentioned the transition to high-def. Where are we on that? Because if you stay at the hotel hideous to do.

Scott Petersen

You should write note to that hotel. Tell their owner to spend a little capital.

Monica DiCenso

Yeah.

Scott Petersen

We only have in 22.5% of our rooms do we have a high-def interactive experience. The remaining 70-some percent, some of those have tubes, Tube TVs and some have flat panels, but the hotel has not invested the capital to bring in high-def, basic TV channels, nor signed a contract with us to bring the entire system up to the full high-def interactive standards. So that's during the recession, we're all capital constrained within that space, hotel industry is coming back, balance sheets are getting better but it is not back to the good olds days. So the capital spend is the one area from the hotel's perspective that's kind of our leading indicator and activity is moving in the right direction there.

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