(Corrects headline to clarify that a key customer has the
option to start restricting content beginning 2013, and not
that it will)
* Sees no impact from key customer in 2011 or 2012
* Says loss of 50,000 rooms of VOD to not have impact
* Says no change to guidance
Jan 19 LodgeNet Interactive Corp LNET.O
reassured investors that a hotel customer would not ban its
adult video content service immediately, as the company's
shares fell as much as 30 percent after an analyst raised this
LodgeNet's revenue per room would be affected if some of its
products, such as independent films, most of which are
non-rated and intended for mature audiences, are not part of
the product package contracted with hotels.
LodgeNet's services to the hospitality and healthcare
industries include guest-paid entertainment content, cable
television programming, broadband Internet access systems, and
professional technical and installation services.
In a press release, the company said the customer in
question has an option to restrict adult content, but only
beginning in 2013 and there is no expected economic impact as a
result of this agreement in either 2011 or 2012.
The company also said future agreements with this customer
are expected to be structured in a manner that also do not have
a material adverse impact.
The company said the analyst report from Craig-Hallum also
stated that another hotel chain plans to remove 50,000 rooms of
video-on-demand over the next six months, but LodgeNet does not
expect the loss of these rooms to have a significant impact on
Shares of LodgeNet, which fell to a inter-day low of $2.88,
recovered some of its losses and was trading down 17 percent at
$3.41 in afternoon trade on Nasdaq.
(Reporting by Jennifer Robin Raj in Bangalore; Editing by