Park Place, Cox sign $30 million pact
LAS VEGAS (AP) — Park Place Entertainment Corp. of Las Vegas announced Monday that it has signed a $30 million agreement with a subsidiary of Cox Communications Inc. to provide digital interactive communications services in 27,000 hotel rooms.
Cox Business Services Hospitality Network of Atlanta, which provides interactive television in more than 110,000 hotel rooms nationwide, entered into the deal involving Park Place properties in Nevada, New Jersey, Mississippi and Indiana.
The move will target two audiences: travelers seeking in-room entertainment and those needing a fast-link to the Internet, Park Place officials said.
“It’s one more selling point. … an extension of the whole entertainment push that has been emphasized within our industry,” Park Place spokesman Bob Conover said.
It also could pave the way for a variety of other offerings, including in-room gambling and shopping. But Park Place executives said that several issues, including how to prevent minors from unauthorized access, must be resolved before the introduction of gambling.
Park Place hotels include Bally’s, Caesars Palace, Flamingo, Las Vegas Hilton and Paris Las Vegas.
Terms were not disclosed, but Cox is investing $30 million in equipment, including the installation of digital televisions, at 18 resorts.
The two companies will split revenues from room guests ordering premium television programs, Internet access through the television and high-speed Internet access for laptop computers.
Robert Stewart, another Park Place spokesman, said the company is reviewing how much Internet access will cost guests and is considering hourly and all-day rates. Movies are charged on a per-showing basis.
The digital system is an upgrade to existing Cox analog systems in 12 of the hotels and it replaces competitors’ systems in the other six. The company would not disclose what vendors are being replaced.
Equipment will be installed beginning in January, with completion expected by the third quarter of 2002.
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