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CORRECTED - CORRECTED-UPDATE 1-Key customer can only restrict content in 201
January 19, 2011 / 7:43 PM / 7 years ago

CORRECTED - CORRECTED-UPDATE 1-Key customer can only restrict content in 201

(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 (Reuters) - 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 concern.

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 its revenues.

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 Jarshad Kakkrakandy)

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