By Ashok Kumar
There
is a quiet revolution underway in consumer�s television viewing habits
and it
can have a significant impact on the video services offered at the
hotels. Some
underlying trends and types of content available over the Internet
offer hotel
owners and operators advice as they change out their TV sets for the
transition
to digital television and new forms of content over the Net.
Americans
are turning to broadband for their TV shows. Nearly 80 million
Americans (43
percent of the online population) have watched one of their favorite TV
shows
on the Internet, up significantly from 12 months ago when that figure
was just
25 percent. A full 20 percent of the American online population said
they watch
TV on the Web on a weekly basis, and that�s ahead of the 14 percent who
say
they take advantage of cable�s video on demand offerings.*
*Source:Digital Life America
tracking study conducted quarterly by Solutions Research Group.
The
Change in Television Viewing
Consumers�
television viewing habits have shifted with the greater adoption of
personal video
recorders (PVRs). The time shifting of content is now a preferred mode
by
on-demand viewers, who will dominate the overall consumer preferences
in the
near future. Viewers are accustomed to the
choice of seeing shows when they want it.
The
change in viewing habits goes in hand with the viewing of TV shows on
the
Internet, where content is available at anytime. Major broadcast TV
networks
now offer parts of their programming line-up, including some popular
shows on
their own Web sites to generate a greater viewing audience. There is a
vast
amount of video content available on the Web and it is growing rapidly.
Video
is available either on a live streaming format or on a downloaded basis
with Media
Player or similar software. There is an increasing number of innovative
players
entering this space and offering video services over the Internet.
It
is the free or cost-effective access to content, at anytime, and the
breadth of
choice that attracts people to watch videos on the Web. Sometimes the
insufficient availability of compelling TV programming or other
entertainment
content is driving people to look for content on the Web, outside of
the
packaged video content services from their service providers.
Content
Available over the Internet
A
popular example of short-form video content over the Internet is
Google�s
YouTube, which has over 50 million registered users accessing video
clips for
free. Then there are companies looking to offer broadcast-quality
content
through the Internet, studios distributing DVDs online, and Web video
portals
offering downloads of long-form content such as movies and syndicated
TV shows
to PCs and set-top boxes. There are varying business models ranging
from
advertising-sponsored free content to fee-based on pay-per-view or
monthly
subscriptions.
With
a variety of past TV shows now available through the Internet, the
concept of a
long tail in the value proposition for this content is evolving
quickly. One
challenge in the access to this content through the Internet is ease of
use in
search. Search capabilities to access this content are being developed
for ease
and accessibility. With greater access to stored video over
authenticated links
over the Net, there is enormous potential for viewer choices.
TV
Transformation in the Guestroom
The
TVs in the guestrooms are going through a transformation. Major
franchisors
have mandated brand standards for flat panel, HD TVs, LCD or plasma,
32-inch,
42-inch and even larger that are equipped with connectivity units. At
the same
time, the HD content and channel line-ups offered at the hotels is also
being
expanded. Hotel brands are teaming up with video service providers to
offer
time-shifted and niche programming on-demand and even exclusive content
that is
not available to the general audience. These initiatives are aimed at
increasing brand loyalty.
The
connectivity units in the rooms have HD multimedia interface (HDMI),
allowing
guests to connect their own media devices and entertainment content
from
podcasts to gaming using the TV screens as the monitor. With HDMI
becoming more
popular and expected in laptops and many consumer devices, the
connectivity
options get much simpler. This also facilitates the portability of
personalized
content for the guest.
What
Does this Mean for Hotel Operators?
The
cabling systems in many of the older hotels will not support the newer HDTV services. The same
can be said of the network
serving HSIA if it was installed more than three years ago. As TVs are
changed
out in the guestrooms there is an opportunity for the hotel operators
to reassess
video service contracts with existing vendors. There is a need for a
good infrastructure
layout to support all these emerging services.
It
is recommended to perform an audit and evaluate the infrastructure at
the hotel
� from a cabling standpoint as well as the network equipment in place.
Active
network equipment would need to be installed that is capable of
monitoring and
responding to bandwidth needs appropriately. The network switches,
routers,
firewalls and gateways must be capable of deep content inspection to
keep the
bad guys out and let the good guys access the content. It will be
necessary to
manage the bandwidth available to the hotel overall to balance guest
satisfaction and revenue optimization. There might be a potential for
incremental revenues to the hotel operator for upgrading guests to
higher Internet
access speeds and in shared revenues from fee-based content billed to
the guest
at the hotel.
Ashok
Kumar is
an independent technology advisor with extensive
experience in the justifiable implementations of emerging technologies
such as
Wi-Fi, IP networks, voice and video communications. He can be reached
at
[email protected].
� Hospitality Upgrade, 2008. No reproduction or transmission
without written permission.
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