Years ago, it was a special treat when hotel rooms offered cable television and perhaps even HBO. Recently, hotel chains began to provide free Wi-Fi so businessmen can access the Internet. Now, customers may be able to view Netflix throughout their stay.
It was reported Wednesday that Marriott International may become the first entity to establish the world’s very first global online television network. The hotel chain announced that it would be permitting its customers at eight of its commercial properties to watch Netflix, Hulu and Pandora through their television sets.
The multi-national corporation is looking to revamp its in-suite entertainment service. By incorporating an on-demand entertainment program, the hotel can attract a greater number of guests who may desire more than just a conventional television, which may seem like an antiquated business model in today’s environment. Also, introducing Netflix would satisfy its existing clientele and generate new business.
Marriott will now be mulling over a series of packages. At the present time, patrons can access Netflix through a laptop, smartphone or tablet via Wi-Fi, but Marriott wants an enhanced integration process, such as inserting Netflix in a premium Internet package available to guests for a specific cost.
In the meantime, it remains unclear as to how Marriott will deliver the proposed service.
“We have invited leading technology companies and content providers to work with us to design the next wave in in-room entertainment focusing on on-demand programming,” said John Wolf, a spokesperson for the Bethesda, Maryland-based Marriott, in an interview with the Associated Press. “We are currently offering guests in eight test hotels the opportunity to stream their content through our high-definition TVs whether it is Netflix, Hulu or Pandora.”
A Netflix spokesperson commented to the Hollywood Reporter that the online streaming service is always seeking out new ways to improve the entertainment viewing experience, but declined to further remark on the current news reports of a Marriott-Netflix collaboration.
Although Marriott hasn’t officially announced its intentions to implement Netflix and other streaming services into its hotel rooms, experts say that it could happen sometime this year, particularly if it’s a popular feature for guests during the testing process. If it’s a success then other hotel chains will quickly adopt the same business measures over fears it may lag behind its competitors.
Netflix international expansion plans
Netflix confirmed Tuesday that it will accelerate its international rollout and will become available in more than 200 countries within the next two years. This comes as the number of subscribers surpassed 57 million last year.
In the fourth quarter of 2014, the online video service added 4.3 million members, which is up 260,000 from the same in the previous year. Despite Netflix raising its prices by $1 to $8.99 in the United States, users are still intrigued by the website.
Netflix said in a statement that it was a prudent move considering that advancements in global markets have “been so strong that we now believe we can complete our global expansion over the next two years, while staying profitable.”
Shares soar on Q4 earnings
With Netflix expected to garner 60 million subscribers in the next few months, shares soared by 16 percent to $404 during after-hours trading, which was also affected by its fourth-quarter earnings.
The company reported in-line revenue of $1.48 billion, while net income rose to $45.5 million. Its earnings of 72 cents a share far surpassed the initial expectation of 45 cents. Also, a $39 million R&D tax resolution helped increase its net income total to $85 million.
