Oxford Media, Inc., a next generation media distribution company specializing in scalable, turnkey hybrid digital Video On Demand (VOD) entertainment systems, High Speed Internet Access (HSIA) and WiMAX triple play solutions for the hospitality industry, announced today that it is expected to become the second largest provider of VOD solutions to the hospitality industry upon the completion of the recently announced merger of the two largest providers of VOD solutions in the U.S.
Earlier this week, LodgeNet Entertainment Corp’s (NASDAQ: LNET) announced the $380 million acquisition of OnCommand from Liberty Media Corp (NASDAQ: LCAPA). The transactionvalues each hotel room that OnCommand services at $455 per room. Oxford Media’s recently acquired customers of SVI Hotel Corporation at a comparative valuation of $90 per room, which included 60,000 rooms of High Speed Internet access. In November, LodgeNet also announced the acquisition of StayOnline, a provider of High Speed Internet Access to the Hospitality industry, with approximately 140,000 rooms for $15 million, or an estimated $107 per room.. Although the OxfordSVI properties have a different demographic profile, the properties produce similar market driven cash flows. OxfordSVI also has a robust and highly regarded 24/7 customer service and nationwide field service network, currently serving its 2400 client hotels.
“The announced acquisition of OnCommand, while creating a significantly larger company in LodgeNet, is expected to open significant opportunities for Oxford as we will become the second largest provider of VOD services to the hospitality industry,” stated Lew Jaffe, President and CEO of Oxford. “When this acquisition closes, Oxford will become the leading alternative for companies deploying VOD services and High Speed Internet Access and will likely see a significant increase in the number of hospitality companies contacting us requesting proposals. In addition, this acquisition further validates Oxford’s decision to enlarge its footprint through acquisition and demonstrates the value we created through the acquisition of SVI. We remain highly focused on increasing the number of hotels using our services, as well as increasing revenue produced per room. We are confident that this plan will generate near-term sales increases and pave the way for sustained profitability.”
About Oxford Media, Inc.
Through its wholly owned subsidiary OxfordSVI, the company has developed the most cost effective next generation solutions for “wireless triple play” employing proprietary technology, its broad geographic rooftop locations and WiMAX distribution models. As a notable member of the WiMAX forum and leading developer of scalable, turnkey hybrid digital VOD and PPV entertainment systems, with content on the edge, OxfordSVI has capitalized on its unique position in the market to implement its wireless triple play solutions. Foundationally, OxfordSVI currently provides VOD/PPV solutions, High Speed Internet access and related services to over 2,400 hotels consisting of 225,000 rooms across the U.S. With its 18 year history in the VOD and hospitality industry, OxfordSVI has developed a portfolio of client hotels principally focused on building guest value and repeat business in the hospitality industry. OxfordSVI’s VOD systems offer hotel guests a variety of video content on-demand including the latest first-run Hollywood Movies, while providing hotel owners with a positive return on investment. Additional services include; high speed internet access, Free-To-Guest programming, and security system solutions.
OxfordSVI’s market is mainly comprised of small and mid-sized hotels and motels -- a segment of the hotel industry previously underserved and unable to offer such services to their guests. This targeted market of hotel properties between 50 to 300 rooms comprises over 2.4 million hotel rooms in the U.S. and represents approximately 56% of the total hotel market. OxfordSVI also develops technology for maximizing video content over WiMAX and other wireless networks and obtains roof rights from their customers in order to provide internet access and content distribution over WiMAX.
Oxford's wholly owned subsidiary Creative Business Concepts, Inc. is a business systems provider specializing in IP networks, IT Security and IT Integration, and Telecom. As part of these service offerings, CBC designs and installs specialty communication systems for data, voice, video, and telecom.
Note: All Oxford Media, Inc. issued press releases appear on the Company's website (http://www.oxfordmediainc.com). Any announcement that does not appear on the Oxford Media, Inc. website has not been issued by Oxford Media, Inc.
Special Note Regarding Forward-Looking Statements: Statements in this news release about anticipated or expected future revenue or growth or expressions of future goals or objectives, including statements regarding whether current plans to grow and strengthen the Company's existing business, are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements in this release are based upon information available to the Company on the date of this release. Any forward-looking statements involve risks and uncertainties, including the risk that the Company will be unable to grow or strengthen its business due to a lack of capital or an inability to identify acquisition candidates and that the Company may not realize anticipated cost savings or revenue growth opportunities associated with any acquisitions, planned or otherwise.
Additionally, forward-looking statements concerning the performance of the Company's business are based on current market conditions and risks, which may change as the result of certain regulatory, competitive or economic events, as well as those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
