Tivus, Inc. today provided commentary on its first quarter 2011 progress deploying the hotel industry’s first Internet-based, in-room, high-definition (HD), Internet-protocol television (IPTV) content-on-demand (COD) system in 2,500 hotel rooms.
“The first quarter has ended with our pioneering HD IPTV COD system live in more than three-hundred rooms and has already been enjoyed by tens-of-thousands of hotel guests,” commented Shiva Prakash, Tivus’ president and chief executive officer. “The first quarter of 2011 has exceeded our expectations, while the entire company has been at work on multiple, concurrent initiatives.
“The highpoint of our fiscal 2011 first quarter was our execution of a memorandum of understanding (MOU) to deploy our new IP-based, in-room HD IPTV COD systems in Host Hotels & Resorts, Inc. properties. An S&P 500 and Fortune 500 company, Host is the nation’s largest lodging real estate investment trust (REIT).
“Within 10 days of the Host Hotel agreement, the Company announced an HD IPTV COD system installation was underway in a downtown Philadelphia, Pennsylvania, 1408 room Host hotel property. To-date, the company has entered into agreements for 2,500 hotel rooms; and, with more than 300 rooms installed during the first quarter, we expect three times, or more, that number of rooms to go live during the second quarter.
“The company also released revenue examples of its ad-revenue sharing business model. To illustrate, we have provided an example here*. Using data from the chart, we find a fully implemented Tivus HD IPTV COD system, generating an average of $3.50 per-day, multiplied by 365 days, equals annual gross revenues of $383,250 for every 300 rooms, or $1,277,500 for every 10000 rooms.
“Tivus also commenced with the Doubletree® Hotel & Executive Meeting Center Downtown project in Omaha, Nebraska. Upon receipt of more than $300,000 from the Doubletree recently, the company ordered approximately 450 Tivus-brand HD IP-based televisions with integrated set-top boxes. Currently, we have confirmed that the shipment is in route to the United States and we expect delivery within the next three weeks.
“In other corporate progress, the Company successfully completed its initiative to attain GAAP compliance. With that completed, the filing of our attorney’s opinion completed the requirements for Tivus to attain full ‘PS’ or Pink Sheets Current Information Status. Upon completion of the Company’s audit this quarter, we intend to file for up-listing.
“The Company also announced the launch of its advanced, Internet-based in-room video-on-demand (VOD) system enabling hotel customers to select and control available content providing a family-friendly guest entertainment. Tivus’ HD Internet-based VOD system empowers our hotel customers to perfectly tailor the entertainment content to best suit the hotel’s brand experience and their guests’ tastes and needs.
“In addition, we formed a strategic partnership with Falcon IP/Complete, a proven HD IPTV engineering and systems integration solutions provider, to integrate and install Tivus’ unique-to-the-industry HD IPTV COD entertainment system.
“2011 has already seen remarkable progress in the execution of our hotel entertainment business plan; finally, I look forward to soon sharing a new Company milestone as well as another Tivus first-in-class innovation,” Prakash concluded.
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