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In the upper end of marketplace, by the way, I should say about 60% of our rooms are in hotels that rated from upscale to luxury, so heavy concentration there about 20% in the midscale market, and around 20% in the independent market, which of course takes a lot of boutique and historic-type properties that would probably be categorized as luxury if they had brand that was rated by one of the hotel industry situations, and then through our rooms, 1.6 million rooms, about the 1.5 billion consumers each year flow. So it's a very large universe, very interesting demographic highly interactive and also from advertising perspective, which is one of our initiatives very attractive from advertiser's perspective.Monica DiCenso Healthcare is how much of your business? Scott Petersen Right now it's about $10 million of our $427 million of revenue. So it's a early stage, but it really leverages our technologies, our interactive systems we created for hotels, takes in the patient room and it's not only entertainment, but probably more importantly it's information for families, about services that the hospital has, and even more importantly patient education. So doctors who prescribe films for a patient to watch or the family to watch before the patient goes home on what to do, what not to do to try to reduce readmissions, or before a procedure, just so there's more information in the patients' hands and they could be more engaged by their experience Monica DiCenso I think last year you launched a new cloud-connected Envision platform. What does that bring to the guest? What kind of revenue opportunity is that for you guys? Scott Petersen Sure. I would say we are once again in the forefront of interactive television. Interesting enough, we installed our first video on demand systems 20 years ago in the hotel industry. So in 1991, we were doing video-on-demand when cable companies were just thinking about it and what that might mean in the space. Our interactive platform right now or you might see ads on television about consumer sets that connect to the internet and you can do lots of cool things in your home, but that does take a sense of technical competence and somebody actually connecting it to the internet to make it work. We are doing that now in the hotel industry, so but now we are transitioned of course to high definition systems in hotels, and hotels need to have invested in the flat panels and some of the other infrastructure necessary to delivery high def.
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. Read the rest of this transcript for free on seekingalpha.com