NxTV Woodland Hills Fastest Growing Company $5 Million to $9.5 Million (119%) No. 2 Fastest Growing Company Overall NxTV has just scratched the surface of its growth. That’s the take of president and COO Russell Reeder as the company goes about getting its Internet-based video-on-demand service into luxury hotels around the world. Reeder attributes the company’s growth to an expanding digital media market, a demand for video-on-demand service and to its early entry into the market. “Being first in a rapidly developing space is the right place to be,” Reeder said. NxTV systems can be found in 70 hotels in 14 countries with 60,000 rooms under contract. The company provides the inconspicuous set-top box and other equipment and in return splits with hotels the revenues generated from guest fees. NxTV is owned by the Najafi Companies, the private equity arm of investment firm The Pivotal Group. The company landed second on the Business Journal’s fastest growing private companies list with 119 percent revenue growth from 2005 to 2006. NxTV also made this year’s Inc. Top 500 fastest growing privately-owned companies list, with a 736 percent growth from 2003 ($1.1 million in revenues) to 2006 ($9.2 million in revenues). The NxTV system sets itself apart from competitors with the large storage capacity for feature films and television shows and the speed of its digital distribution. Guests also have access to high-speed Internet. The luxury hotel market is a difficult one to enter because of the high expectations of its guests. When traveling domestically or abroad those guests want the same access to on-demand programming and the Internet as they have at home or the office. “Many hotels don’t have the luxury of providing that type of technology,” Reeder said. “That is what we give to these hotels.” The system can be applied to other venues that place a premium on treating customers well, such as hospitals, cruise ships and hotel-condominium buildings. To eliminate the set-top boxes, the company is working with television manufacturers to include a NxTV set up in the drop-down box on the set-up menu.
