Whistler-based RTOWN has sold its 12th franchise and plans rapid growth in the fast-growing niche of hotel TV broadcasting.
RTOWN broadcasts targeted advertising and information programming tailored to hotel clients. Hotel guests watching TV in their rooms can turn to a channel of promotional programming to highlight local attractions, about 80% of of which will be the same for all hotel clients in the same market. The remainder of the programming is advertising and information specific to the hotel – such as details of its spa facilities or the menu at its restaurant.
The franchisor has already landed high-profile investors such as DDB Canada chair and CEO Frank Palmer (pictured). Its latest franchisees are former Global TV vice president and general manager Brett Manlove and syndicated radio host Mike Falcon.
Palmer told Business in Vancouver May 17 that franchises for cities cost between $95,000 and $250,000 as a one-time fee. RTOWN takes a royalty of between 15% and 20% on all sales.
Palmer sees this kind of broadcasting as a natural evolution of information delivery and points to other sectors in which it is already working.
"This is why we're so excited about it," he said. "McDonald's [Corp. (NYSE:MCD)] is testing a whole network. They're putting in 600 restaurants across the U.S. these screens to promote their products and services to the consumer. This is where the world is going. It's coming back to localized advertising."
Another example of a similar technology is that SkyTrain stations have screens that show travellers information about both their local area and TransLink operations. Office buildings similarly have screens in elevators that provide local information.
"The difference is that in an elevator you have one minute to see the advertising," Palmer said. "For us, it will take 20 minutes to do a full loop, and I think most people will watch that."
RTOWN broadcasts to 45,000 hotel rooms and on 25 public digital screens. Palmer said all of the hotel room broadcasting is through franchisees. The company corporately manages 25 public digital screens in resort towns but is considering franchising that operation, said Palmer, who is also one of the company's directors.
