TiVUS, a provider of Internet-based TV and cable programming, interactive game content, and goods and services to the hotel/hospitality industry, announced that advertising on the company’s satellite based internet-protocol television (IPTV (News - Alert)) with ad-insertion has started generating revenues.

This is an important development for the technology company as it will offer strong validation to TiVUS’ novel hotel high-definition (HD) IPTV ad-insertion business model.

TiVUS is expected to announce well-known advertisers in the coming weeks as the company is experiencing strong advertiser demand. The TiVUS ad-insertion based business model is capable of leading the way forward for the hospitality entertainment industry and TiVUS IPTV with ad-insertion enables hotels to migrate away from legacy video-on-demand systems.

A press release said that the company believes current ad-revenue projections reveal TiVUS’ HD IPTV with ad-insertion effectively renders video-on-demand income, already in decline for over a decade, immaterial,

“Today it is satisfying to report, however meager initially, our ad-revenues have begun at our inaugural Philadelphia installation. Moreover, at the current pace of ad-sales, I expect this installation to be fully-booked with advertisers and generating expected revenue, which we have always believed was attainable, by early in the second fiscal quarter,” said Shiva Prakash, TiVUS’ chief executive officer, in statement.

The company’s ad sales team has been working with local businesses for the past six weeks. During that time, advertisers have filmed commercials, placing ads, and taking advantage of unprecedented e-commerce opportunities.

“As a result, billing cycles for local advertisers has begun and invoicing has already been underway. Based on our success here in Philadelphia, we believe TiVUS has forever changed the way hotels fund, implement, and leverage in-room entertainment,” Prakash added.

Recently, TiVUS announced that it is offering high-definition Internet Protocol television entertainment and in-room Wi-Fi solutions to coastal resort properties. Utilizing advanced IPTV services from TiVUS, these remote and virtually unserved hotel resort properties can offer better technological amenities to guests.

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