Netflix is eying hotels to expand its target audience, and has teamed up with Marriott to expand its services to their guests. Marriott is also allowing its guests to access services offered by Hulu and Pandora as well as Netflix in its new in-room entertainment service.
Potential revenue stream for Netflix
At present, guests in the hotel can watch Netflix over their laptops and tablets through Wi-Fi, but integrating the service with TV would offer a better opportunity and new revenue stream for both Netflix and Marriott. The hotel is already offering various packages including Netflix in a premium Internet package.
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“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 spokesman for Bethesda, Maryland-based Marriott. The executive added that at present, guests in eight test hotels are being given an opportunity to stream the content from multiple content providers on their high-definition TVs. Marriott is one of the most well-known hotels in the world with more than 700,000 rooms in 79 countries and territories, and Netflix will clearly benefit from this partnership.
A report from Bloomberg citing a knowledgeable source, revealed that various other hotels are also in talks with Netflix about bringing the streaming service to their customers.
Decent 4Q numbers from Netflix
Netflix surged after posting fourth-quarter earnings that were in-line with the expectations, and is positioned to surpass 60 million members in the next few months. The company added 4.3 million new subscribers in the fourth-quarter, bringing the current total to 47.4 million. Netflix added 2.4 million streaming subscribers internationally compared to 1.74 million the previous year. In the U.S., the company gained 1.9 million subscribers, compared to 2.3 million last year.
For the quarter, Netflix posted revenue of $1.48 billion and earnings of 72 cents compared to expectations of 45 cents. Net income for the streaming company increased to $45.5 million, beating company’s own guidance of $27 million.
Even though Netflix is facing tough competition from rivals such as Amazon, it is still growing faster than any of its competitors. The company announced more big plans in September 2014, including releasing its first movie by the end of this year.