IPTV Global Hospitality
(In-Room and In-Flight Entertainment) Markets
Quarterly Technology & Content Report - February 2010
Published by MRG, Inc.
February 2010, 73 pages
Hard Copy Print Edition $1,995 USD
PDF Single-Departmental License $2,995 USD
PDF Corporate-Wide License $3,995 USD
The report is available free as part of MRG's IPTV Tracking Service
California orders please add 9.25% sales tax
To order click here or contact Rob Smith at rsmith@mrgco.com
Executive Summary — Hospitality IPTV Markets
This hospitality IPTV market report is comprised of In-Room Entertainment (IRE) and In-Flight Entertainment (IFE). This report discloses how large the entire hospitality video market is, what percentage already has Triple-Play or at least video services (Broadcast and on-demand services), and what part of that market is ready to buy (or lease or engage in a partnership) to offer a new or upgraded bundled IPTV service. Technology descriptions and vendor profiles are included.
The report also answers these questions:
- What are the top 3 market drivers for the hospitality (IRE and IFE) services?
- What are the main business models that are most popular with “Operators” (such as building owners or managers)?
- What growth rate can be expected in 2009-2012 on a region-by-region basis?
- How will market drivers differ in various regions, and why?
- What can Hospitality Operators (for IRE) in the various regions expect as a return on investment?
- What are the real costs and benefits of converting to IPTV, including estimated ROI?
- How do IFE and IRE services compare, and what can be learned from their similarities?
- What impact is online video likely to bring on the VOD revenues in In-Room Entertainment, and how can hoteliers respond?
Global Market for Hotel Video ($US, Million), Revenue and CapEx Combined

Source:
Company SEC Filings, MRG, Inc.
This report is part of the IPTV Tracking Service published by the Multimedia Research Group, Inc.
Table of Contents
| 1 |
Executive Summary — Hospitality IPTV Markets |
| 1.1 |
Historical Background |
| 1.2 |
Key Findings |
| |
|
| 2 |
Introduction |
| 2.1 |
Background |
| 2.2 |
Pure IP Systems |
| 2.3 |
IP/QAM Systems |
| 2.4 |
Definitions of Market for On-demand and Broadcast Services |
| 2.4.1 |
Hospitality In-Room Entertainment (IRE) Market Segment |
| 2.4.2 |
In-Flight Entertainment (IFE) Market Segment |
| 2.5 |
Define Cost/Functional Advantages of IP in IRE and IFE |
| 2.6 |
Recap Basic Dynamics of IP Hospitality Market |
| 2.6.1 |
Market Drivers |
| 2.6.2 |
Market Barriers |
| 2.6.3 |
Market Opportunities |
| 2.7 |
Recap Basic Dynamics of IFE (In-Flight Entertainment) Market |
| 2.7.1 |
Market Drivers |
| 2.7.2 |
Market Barriers |
| 2.7.3 |
Market Opportunities |
| |
|
| 3 |
Market Size and Related Market Data |
| 3.1 |
Global Hotel Market — Summary (2008-2012) |
| 3.2 |
Hotel Market Size By Region — Summary (2008-2012) |
| 3.2.1 |
Asia |
| 3.2.2 |
Europe/Middle East |
| 3.2.3 |
North America |
| 3.3 |
IFE Market Size By Region — Summary (2008-2012) |
| 3.3.1 |
Global Market |
| 3.3.2 |
IFE Market By Region |
| 3.4 |
IFE Market Breakdown By Type of Video |
| |
|
| 4 |
Technology Definitions |
| 4.1 |
System Configurations |
| 4.1.1 |
Pure IP |
| 4.1.2 |
Hybrid IP/Coax |
| 4.2 |
Broadcast |
| 4.2.1 |
Ingest |
| 4.2.2 |
Distribution |
| 4.3 |
On-demand |
| 4.3.1 |
Ingest |
| 4.3.2 |
Distribution |
| 4.4 |
Converged Systems (Triple-Play) |
| |
|
| 5 |
Review of Key Issues |
| 5.1 |
Advertising |
| 5.2 |
Use of Fiber vs. Coax vs. UTP vs. Wi-Fi |
| 5.3 |
System Costs |
| 5.3.1 |
ROI: Arriving at Break-even |
| 5.4 |
How to Reduce Costs |
| 5.5 |
How to Make a Profit When the Host Doesn't Pay |
| 5.6 |
Business Models That Make a Profit (Basic and Converged Services) |
| 5.7 |
Use of Widgets and Other Interactive Services |
| 5.8 |
Case Study of New IP System Replacing Old |
| 5.8.1 |
IPTV System Replacing Tape-Based Video System |
| 5.9 |
Future Trends |
| 5.9.1 |
Hotels |
| 5.9.2 |
Airlines |
| 5.9.3 |
Other Segments |
| |
|
| 6 |
Vendor Profiles |
| 6.1 |
Hospitality Vendor Profiles |
| 6.1.1 |
ADB (Advanced Digital Broadcast) |
| 6.1.2 |
Amino |
| 6.1.3 |
Anevia |
| 6.1.4 |
CoreTrust |
| 6.1.5 |
Drake |
| 6.1.6 |
Espial (Kasenna) |
| 6.1.7 |
LG Electronics |
| 6.1.8 |
MICROS (Fidelio, PMS System) |
| 6.1.9 |
Motorola |
| 6.1.10 |
Move Networks (Inuk Networks) |
| 6.1.11 |
Nighthawk Systems (Eagle Broadband) |
| 6.1.12 |
Pace |
| 6.1.13 |
Philips |
| 6.1.14 |
Samsung |
| 6.1.15 |
SecureMedia (Recently Acquired by Motorola) |
| 6.1.16 |
Verimatrix |
| 6.2 |
IFE Vendor Profiles |
| 6.2.1 |
ExtendMedia |
| 6.2.2 |
LiveTV |
| 6.2.3 |
Row44 |
| 6.2.4 |
Spafax |
| 6.2.5 |
Thomson |
| |
|
| 7 |
Turnkey/System Integrator Profiles |
| 7.1 |
Hospitality |
| 7.1.1 |
Acentic GmbH |
| 7.1.2 |
All Day Cinema |
| 7.1.3 |
BNS (Broadband Network Systems) Ltd. |
| 7.1.4 |
Bulk TV & Internet |
| 7.1.5 |
DIRECTV |
| 7.1.6 |
DOCOMO interTouch |
| 7.1.7 |
EchoStar |
| 7.1.8 |
Filmbank |
| 7.1.9 |
Guest-Tek Interactive Entertainment Ltd. |
| 7.1.10 |
Hospitality Network, A Product of Cox Business |
| 7.1.11 |
iBAHN |
| 7.1.12 |
KoolConnect Technologies |
| 7.1.13 |
LodgeNet (On Command) and LodgeNet Healthcare |
| 7.1.14 |
NxSystems LLC (NXTV) |
| 7.1.15 |
PureHD |
| 7.1.16 |
Skylight Healthcare Systems |
| 7.1.17 |
Smart Hospitality |
| 7.1.18 |
SuiteLinq |
| 7.1.19 |
Quadriga |
| 7.2 |
In-Flight Entertainment (Turnkey/System Integration) |
| 7.2.1 |
Lumexis |
| 7.2.2 |
Panasonic Aviation |
| 7.2.3 |
Rockwell Collins |
| 7.2.4 |
Thales |
| |
|
| 8 |
Conclusions |
| 8.1 |
Winning Services |
| 8.2 |
What IP Brings That Competition Can't |
| 8.3 |
Risks |
| 8.4 |
Opportunities |
| |
|
| 9 |
Addendum #1: Glossary of Terms |
| |
|
| 10 |
Index of Companies |
Table of Figures
| Figure 2-1: |
The "guestLINK" Product |
| Figure 2-2: |
Types of Devices Guests Bring to Hotels |
| Figure 3-1: |
IRE Total Hotel Rooms and Video-enabled Rooms Worldwide |
| Figure 3-2: |
Global Market for Hotel Video ($US, Million), CapEx and Revenue Combined |
| Figure 3-3: |
Asia Hotel Market for Video ($US, Million) |
| Figure 3-4: |
EMEA Hotel Market for Video ($US, Million) |
| Figure 3-5: |
North America Hotel Market for Video ($US, Million) |
| Figure 3-6: |
North America Hotel Market By Technology Type (Rooms [000]) |
| Figure 3-7: |
North America Hotel Entertainment Revenue Per Room, Per Month |
| Figure 3-8: |
Global Revenue for New IFE Systems ($US, Millions) |
| Figure 3-9: |
IFE IPTV Systems Revenue Breakdown By Region ($US) — 2009-2010 |
| Figure 3-10: |
Video System Breakdown By Selected Airline |
| Figure 3-11: |
Total (Selected Airline) Breakdown of Video Systems By Seat |
| Figure 3-12: |
Total (estimated) Breakdown of Operational Airline Seats and Video-enabled Seats |
| Figure 4-1: |
Typical IP Video System Architecture |
| Figure 4-2: |
Motorola's High-speed (In-Room) Ethernet System |
| Figure 4-3: |
Drake's QAM-Based System For Video Distribution |
| Figure 6-1: |
ADB's Set Back Box, Model 4820C |
| Figure 6-2: |
Amino's AmiNet110H STB Hospitality Model (Overall View) |
| Figure 6-3: |
Amino's AmiNet110H STB Hospitality Model (Rear Connections) |
| Figure 6-4: |
Row 44's GUI with Space for Advertising Inserts |
| Figure 7-1: |
Skylight Systems' Interactive TV System |
| Figure 7-2: |
Virgin America's Red IFE Interface |
Table of Tables
| Table 2-1: |
Equipment Cost Sharing (U.S.) |
| Table 5-1: |
Break-even/ROI Scenarios for In-Room Entertainment Systems ($USD) |

Index of Companies
| ABC |
KoolConnect Technologies, Inc. |
| Accor |
Korea Telecom (KT) |
| Acentic GmbH |
LG Dacom |
| ADB |
LG Electronics, Inc.
(LG Electronics USA, Inc.) |
| ADB Group |
LiveTV LLC |
| Adtec Digital |
LodgeNet Interactive Corporation
(OnCommand)
|
| Advocate |
Lufthansa |
| Air AsiaX |
Lumexis Corporation |
| Air Canada |
Maritim |
| Air France |
Marriott |
| AirOne |
Marriott International |
| AirTran |
Matsushita Electric Industrial Co., Ltd. |
| All Day Cinema, LLC |
Mexicana Airlines |
| American Airlines |
MICROS Systems, Inc.
(MICROS-Fidelio International) |
| Amino Communications Ltd. |
Microsoft |
| Amino Technologies PLC |
Motorola, Inc.
(SecureMedia) |
| Anevia |
Move Networks, Inc.
(Inuk Networks Ltd.) |
| Apple Inc. (iTouch) |
Mövenpick |
| Arab Media Corporation (AMC) |
Netflix, Inc. |
| Archos |
Nighthawk Systems, Inc.
(Eagle Broadband) |
| Ascension Health |
Nintendo |
| Asiana |
NxSystems LLC (NXTV Inc.) |
| AssetHouse |
Pace |
| Aurora |
Panasonic Avionics Corporation |
| Banner Health |
Panasonic Corporation of North America |
| Bell Canada |
Park Regis |
| Benchmark Capital |
ProSieben |
| Blonder Tongue |
PureHD Inc. |
| Blue Wings |
Quadriga |
| BNS Ltd. (Broadband Network Systems) |
RealNetworks, Inc. |
| British Airways |
Reeltime Infotainment |
| Bulk TV & Internet |
Rockwell Collins |
| Cavalier Telephone |
Rosari IT Services (RIS) |
| China Data Broadcast |
Row 44 |
| Cisco Systems, Inc. |
Royal Philips Electronics of the Netherlands |
| Comcast |
Samsung |
| Continental Airlines, Inc. |
Sharp Healthcare |
| CoreTrust, Inc. |
Skylight Healthcare Systems, Inc. |
Cox Enterprises
(Adify Corporation, AutoTrader.com, Cox Business Systems, Cox Communications, Inc., Cox Media Group, Inc., Cox Radio, Inc., Cox TMI, Inc., Kudzu.com, Manheim, Inc.)
|
Smart Hospitality Corporation |
| Crown Macau |
Smith Travel Research |
| CWI |
Sol Melia |
| DIRECTV, Inc. |
Sony
(Sony Pictures Releasing) |
| DISH Network LLC |
Southwest Airlines |
| DOCOMO interTouch Pte Ltd. |
Spafax |
| Dorint |
St. Mary's Hospital |
| Drake |
Starwood Hotels & Resorts |
| EchoStar Corporation (Sling Media, Inc.) |
Starz |
| Empire Hotel |
Steamboat Ventures |
| Espial (Kasenna) |
SuiteLinq, Inc. |
| ESPN |
Sutter |
| Etihad |
Swank Hospitality |
| ExpressJet |
Televisa |
| ExtendMedia |
Thales |
| Filmbank |
Thales Group |
| Fox |
Thomson |
| Frontier Airlines |
TiVo Inc. |
| Fullerton Hotel |
United Airlines |
| guestLINK |
US Airways |
| Guest-Tek Interactive Entertainment Ltd. |
Verimatrix |
| Hawaiian Airlines |
Videotree |
| HBO |
Virgin Airlines |
| Hilton |
Virgin America |
| Holiday Inn Express |
Virgin Atlantic |
| Hotel International & Terminus |
Virgin Blue |
| Hummer Winblad Venture Partners |
Warner Bros. Entertainment |
| Hyatt |
WestJet |
| iBAHN |
World Airline Entertainment Association (WAEA) |
| InterContinental Hotels Group (IHG) |
Wyndham Worldwide |
| Japan Airlines |
XM |
| JetBlue Airways Corp. |
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IPTV Global Hospitality (In-Room and In-Flight Entertainment) Markets (February 2010) is 73 pages and is available in a printed English language edition for $1,995 USD, a PDF single-departmental license for $2,995 USD, and a PDF corporate license is available for $3,995 USD. It is available free as part of MRG's IPTV Tracking Service.
For more information or to order the report, contact Rob Smith at 1-408-453-5553
or rsmith@mrgco.com.
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