A new company called On Command believes private hotel networks are the perfect place to pilot new on-demand services before they reach the home market, and plans to take itself to market on that belief. The Santa Clara, California-based company was created when the On Command Video unit of Ascent Entertainment Group swallowed its biggest competitor, SpectraVision Inc, which got itself into financial trouble by not selling enough on demand guest services into hotel rooms and over-investing in expensive new technologies. A federal bankruptcy judge yesterday approved Ascent’s application for On Command Video to purchase SpectraVision for $225m in stock, warrants and assumed debt. The two companies had a combined annual revenue of $226m in 1995. Denver, Colorado-based Ascent will own majority shares in the new firm, which has filed for an initial public offering on NASDAQ. The new company will have about 1,000 employees and its biggest competitor will now be Sioux Falls, South Dakota- based LodgeNet Inc. On Command has its systems installed in about 900,00 hotel rooms worldwide, but will try to sell new services and products into the wider consumer marketplace. Currently the company provides broadband video and data content through coaxial cable and digital satellite. One time AT&T Corp exec Bob Kavner will be CEO at the new firm, which is also expected to develop new interactive information services for luxury and business class hotels to offer to their guests. Kavner spent the last year leading Kavner & Associates, his Internet on-demand media consulting business.
