The MiniMate platform is an extension of On Command's Roommate(TM) platform, but at 50% of the per room cost. Roommate was launched in the fourth quarter of 2001 and is operating in more than 43,000 hotel rooms. Hotel partners can provide their guests with an unparalleled array of on-demand, pay-per-view entertainment options. This new platform will provide a fully digital solution that, depending on system configuration and content length, can offer up to 150 programming titles to the hotel guest through the in-room television system.
"With an estimated buy rate per equipped room per month similar to that currently experienced, it is estimated that the hotel could receive a return on its investment in excess of 20%," said David Simpson, senior vice president of engineering for On Command. "This is an exciting technology breakthrough."
Because of its small size, the MiniMate platform has reduced cooling requirements, consumes less power, and requires less space for installation than standard platforms. However, its scalable design enables On Command to add additional products and services as demand increases.
A key benefit of the platform is that it will operate On Command's new hotel customized menu system. This menu system enables the television power-up channel and subsequent menu categories to be designed to reflect the hotel's brand look and feel. It also includes an entire menu section devoted to hotel services, which enables the hotel to market its own services to in-room guests.
"We're very excited about the opportunity to provide smaller hotels with a method of generating new revenue," said Larry Smith, senior vice president of sales and distribution for On Command. "By offering on-demand movie entertainment, these hotels can increase guest satisfaction, and the value proportion is so powerful that for many 100-room properties a 1% increase in occupancy will pay for the capital investment."
Beta testing is scheduled for fourth quarter 2002.
About On Command
On Command Corporation ( www.oncommand.com ) annually serves more than 250 million guests through 923,000 rooms in approximately 3,440 hotel properties. These hotel properties include more than 100 of the most prestigious hotel chains and operators in the lodging industry: Adam's Mark Hotels & Resorts, Fairmont, Four Seasons, Hilton Hotels Corporation, Hyatt, Loews, Marriott (Courtyard, Renaissance, Fairfield Inn and Residence Inn), Radisson, Ramada, Six Continents Hotels (Inter-Continental, Crowne Plaza and Holiday Inn), Starwood Hotels & Resorts (Westin, Sheraton, W Hotels and Four Points), and Wyndham Hotels & Resorts. On Command is listed on the NASDAQ Stock Market under the symbol ONCO, and its warrants are traded under the symbols ONCOW and ONCOZ.
Certain of the above statements, other than statements relating to the historical performance of On Command, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance, or achievements of On Command, or industry results, to differ materially from future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, among others: general economic and business conditions and industry trends; the regulatory and competitive environment of the industry in which On Command operates; uncertainties inherent in new business strategies; new product launches and development plans, including the future profitability of such added services and the large capital expenditures involved; rapid technological changes; the acquisition, development and/or financing of telecommunications networks and services; the development and provision of new services, including the customer acceptance and use rates; future financial performance, including availability, terms and deployment of capital; the ability of vendors to deliver required equipment, software and services; availability of qualified personnel; changes in the nature of key strategic relationships with hotel chains and their franchises, including the renewal of existing agreements on favorable terms; and competitor responses to On Command's products and services, and the overall market acceptance of such products and services. These factors are also discussed in On Command's filings with the Securities and Exchange Commission, including its recent filings on Form 10-K and Form 10-Q. These forward-looking statements (and such risks, uncertainties and other factors) speak only as of the date hereof, and On Command expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in On Command's expectations with regard thereto, or any other changes in events, conditions, or circumstances on which any such statement is based.
