LodgeNet is a provider of in-room entertainment and data services to hotels. Its operating results are subject to trends in consumer and corporate travel; the discretionary nature of traveler purchases; the unpredictable success of movies, which generate the majority of room revenue; and consumers' changing habits in accessing entertainment. We believe that increases in broadband access (complimentary or fee-based) in hotel rooms, along with growing usage of portable devices, will continue to reduce demand for LodgeNet's core on-demand movie services. Higher-margin guest entertainment revenue (about half of revenue) remains under secular pressure as a result of the increased penetration of broadband and high-speed cellular networks, combined with a shift by consumers to viewing more content online.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.