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DALLAS—LG Electronics, Inc. and LodgeNet
Entertainment Corporation are bringing satellite-sourced programming in
high-definition television (HDTV) to hotel guests for the first time. The
end-to-end solution delivers high-definition digital video to the guest room
television from both the satellite dish and the off-air antenna.
Announced at
the Hospitality Industry Technology Exposition and Conference here today, the
new system is based on an LG-developed off-air platform that transcodes
satellite-delivered HDTV channels (such as HDNet, HBO-HD, Showtime HD, ESPN HD
and Discovery HD Theater) for delivery to hotel rooms.
The signals, which will be
encrypted to provide digital content protection, take advantage of the
industry-standard digital television reception technology that will be built
into virtually all TVs over the next three years in accordance with Federal
Communications Commission (FCC) regulations.
"This system builds on our
first-generation, standards-based off-air HDTV solution that today is providing
guests a vastly sharper picture and smoother video compared to analog and
digital SDTV (standard-definition television) signals," said David Bankers,
senior vice president, Product and Technology Development for LodgeNet, one of
the world's largest providers of interactive television systems and broadband
services to the lodging industry. Now, guests will be able to enjoy HDTV's quantum leap in
picture quality, video performance, and audio with available broadcast and
satellite network programming. All satellite and off-air HD content is
seamlessly integrated with LodgeNet's sigNETure TV system (delivering digital
on-demand movies, music, TV programming and games) -- so guests can enjoy easy
access to everything with a single remote control.
This is made possible by the
companies' industry-first HDTV solution, which uses the LG transcoder to convert
both satellite- and broadcast- delivered digital TV signals for delivery through
the hotel's coaxial cable to an industry-standard receiver in the guest room.
The set-top
box integrates ATSC digital HDTV, traditional analog (NTSC) programming signals
and now satellite HDTV signals, along with digital content protection and the
interactive functionality of LodgeNet's video-on-demand system card. This
solution represents an additional product breakthrough for LodgeNet's
interactive television systems, which use a specialized satellite distribution
network and digital platform to bring on-demand entertainment to more than
435,000 hotel rooms today.
"With more than 1,200 TV stations broadcasting digitally
and reaching more than 99 percent of American viewers, the market for HDTV is
exploding," said Richard Lewis, senior vice president, LG Electronics USA, Inc.
"A huge amount of compelling HDTV content also is available via satellite."
"Until now,
however, no one has delivered the technology necessary for travelers to enjoy
broadcast and satellite HDTV content in hotel rooms across North America," he
said. "This technology opens a whole new world of high- value guest services,
which are particularly compelling on the large flat panel displays that are
starting to be deployed in more and more high end properties." First
installations of the new system are expected late this year when satellite
provider agreements are finalized.
LodgeNet Entertainment Corporation www.lodgenet.com is one of the world's largest providers of interactive
television systems and broadband services to hotels, including resort and casino
hotels, throughout the United States and Canada as well as select international
markets. These services include on-demand movies, music and music videos,
Nintendo(R) video games, Internet on television, and other interactive
television services, as well as high-speed Internet access, all designed to
serve the needs of the lodging industry and the traveling public. LodgeNet
provides service to more than one million rooms, including 967,000 interactive
guest pay rooms, in more than 5,800 hotel properties worldwide. LodgeNet
estimates that during 2003 more than 260 million travelers had access to
LodgeNet's interactive television systems. LodgeNet is listed on NASDAQ and
trades under the symbol LNET.
LG Electronics U.S.A., Inc., (LGEUS) is the North
American subsidiary of LG Electronics, Inc., a global leader in consumer
electronics, information technology and communications products. LGEUS is
comprised of four business units: Digital Appliance, Consumer Electronics,
Information Technology and Mobile Phones. In providing cutting-edge,
performance-driven products for the largest digital market in the world, LGEUS's
goal is to enable the intelligent networking of digital products that will make
consumers' lives better than ever and deliver on its marketing promise of "LG:
Life's Good." For more information on LG's commercial products, please
visit www.lgcommercial.com.
This release contains forward-looking statements within
the meaning of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, and are subject to risks, uncertainties, and
other factors that could cause the Company's actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the following: general economic and business
conditions, and trends in the lodging and entertainment industries in
particular; changes in hotel occupancy rates, business and leisure travel rates
and the "buy rate" of our customers; our ability to access popular movies, video
games, music and other content on terms that are acceptable to us; the impact of
regulations or competition on our products and services and changes to the
competitive environment for our products and services, including the ability of
our competitors to deliver on demand guest pay services through the Internet or
cable; the occurrence of one or more future terrorist attacks, wars, public
health concerns or other domestic or international crises; the ability of our
suppliers to provide key components and services necessary for the manufacture
and assembly of our interactive systems; uncertainties inherent in our new
business strategies, such as our efforts to expand our digital system to a
broader segment of our customer base; uncertainties inherent in our efforts to
improve operating results by increasing revenue and decreasing costs; our
ability to secure additional capital on terms that are acceptable to us and
sufficient to execute our business plan, including expanding the installation of
our digital system in our customers' guest rooms, and to adapt to technological
changes in our industry; changes in the nature of our relationships with hotel
chains and their franchisees, including our ability to obtain new customers and
to retain existing customers; the outcome of any litigation; the results of our
product development efforts relating to the development of new technologies and
the enhancement of existing technologies; and other factors detailed, from time
to time, in the Company's filings with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date of this release. The
Company expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based. LodgeNet is a registered trademark of LodgeNet Entertainment Corporation.
Other names and brands may be claimed as the property of others. All rights
reserved.
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