NEXT GENERATION CONTENT STRATEGY = HOTELS GENERATE REVENUE FROM CONTENT . Ad Supported Content : Guest viewing generates Ad Revenue
Supported Streaming TV ) for their entertainment . Due to the greater maturity of the SVOD market , it saw just a 3.5 percentage point growth in the last year . Economics are also impacting the SVOD market . The average household spends about US $ 47 on SVOD – three to four services . “ This is beginning to look like the new cable bundle ,” says Craig Snelgrove , executive vice president of sales at Allbridge . “ It ’ s not ‘ Either ~ Or ’ as viewers want the option to watch the content they are paying for ( e . g ., Netflix , Hulu , Disney +) along with more targeted free-to-guest channels ( Locals , Sports , etc .). Limits to discretionary household income is driving viewers to advertising-support options .”
Most connected TVs have more apps on-board , but many of those aren ’ t being used , Allbridge maintains . Casting supports the most-used streaming apps , with icons arranged and familiar to the smartphone user , including Netflix , YouTube , Disney +, Hulu , and much more .
According to in-room entertainment system provider Enseo , television viewership increased by 49.3 % per occupied room from August 2019 to August 2020 , and with the proliferation of subscription services , one can only expect in-room experiences to grow . Instead of hanging out at the hotel bar , binge watching a streaming series in-room could become the preferred activity as long as COVID persists .
According to growth strategies consultancy Magid , there could be an opportunity to sell premium internet speeds to allow guests to engage in gaming and to use services like Roku and firestick devices .
Magid Vice President and Strategy Consultant Rick Garlick said 71 % of consumers use a music streaming service and the fitness-on-demand boom is thriving during the pandemic . He said while this presents an upsell opportunity , hoteliers must be sensitive to the potential for noise-related issues , and that
NEXT GENERATION CONTENT STRATEGY = HOTELS GENERATE REVENUE FROM CONTENT . Ad Supported Content : Guest viewing generates Ad Revenue
FASTv channels + AVOD . Guest-Based Content : Free from the Guest . Plus “ limited spend ” for Marquee content + Locals Premium HBO ESPN Local Broadcast stations Other more limited traditional cable lineups . Guest Direct Purchase : New Movies ( VOD )
Source : Allbridge
IoT connected rooms with smaller built-in speakers throughout could have appeal .
Magid ’ s Video Entertainment Study found consumers , especially during COVID , are much more open to renting newly released movies during hotel stays . Magid research found one-in-four are willing to rent a newly released movie for US $ 19.95 , with one-in-five willing to pay US $ 10 or ) more .
To address increasingly present security and privacy issues , Garlick suggests offering casting from guests ’ own devices that allows them to access their existing entertainment services without having to enter any passwords . He also suggests making private hot spots hours / week
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|
Connected TV penetration and usage among US adults 50-64 |
|
|
15 |
|
49 % |
55 % |
60 % |
|
|
40 % |
|
|
10 |
33 % |
10.9 |
11.15 |
40 % |
5 |
7.7 |
8.6 |
|
20 % |
0 Q3 2018 Q3 2019 Q3 2019 Q3 2020
0 %
CTV usage ( users ) CTV penetration © nScreenMedia 2021
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