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Content 2017 www.inflight-online.com content 2017 On-board entertainment A supplement to Provision, protection, programming 04 Content is king The relationship of content providers with their airline customers is key in ensuring a successful and relevant in-flight entertainment library. Alexander Preston Editor Introduction There was a time when in-flight entertainment (IFE) consisted of reading, talking to your fellow passengers or looking out of the cabin window. Simpler 06 pastimes for a simpler age. The right rights In today’s digital era, passenger expectations are now much greater than previously. Without a coherent and valid Changes in the way we consume media, coupled with advances in technology, are having digital rights management a profound effect on IFE – from hardware, to software to programming. (DRM) policy, an airline faces a In our latest Infocus supplement, we delve into the programming side and take a look at blackout on their in-flight some of the varieties of IFE currently available. entertainment. With airline budgets on programming in the hundreds of thousands of dollars bracket, delivering relevant, up-to-date and entertaining content is not only crucial in the pursuit of great passenger experience, but financially prudent that it is achieved appropriately. It’s here where the role of content service providers is so central. Gaining insight, not only into passenger tastes, but also into the legalities of licensing and performance rights for example, ensures that an airline’s curated library of audio/video content is fit for purpose. It’s the difference between a box office blockbuster (Avatar) and a box office flop (The 09 13th Warrior). A musical odyssey But surprisingly, it’s the moving map which seems to grab our attention more. Away from the small screen, These solutions not only entertain and engage passengers, but create additional airlines are finding that music ancillary revenue opportunities. Passengers are captivated with high-definition, interactive can help create a unique and maps that let them follow their flights in real time, exploring the virtual globe and making stimulating passenger time fly. experience. For The Jam, entertainment may have been about “watching the tele and thinking about your holidays”, but today’s in-flight content is less aspirational and more inspirational. 12 Wish you were here Airlines are inspiring their customers and growing engagement with the most up-to-date destination content, relevant to their brand. P.4 / Infocus / Content 2017 Inflight www.inflight-online.com IFE services have become a key element in the design of aircraft cabins. – it’s an investment that airlines are having to embrace in order to stay in the air. “IFE is the most expensive part of an aircraft after engines,” says Mathieu Reboisson, sales and marketing senior executive, Global One Media, which sets Content itself apart from other content service providers (CSPs) as it’s able to offer hardware engineering technology alongside its content and software services. “The return on investment of this high cost is simply, passenger satisfaction. Whatever cost an airline applies, if passengers are not pleased, is king they have wasted this investment…” IFE might be one of the most expensive elements on an aircraft, THE ROLE OF CSPS but it is also integral to the passenger experience. Chloë When you look at the statistics for the Greenbank gets to grips with the backbone of this industry – the number of passengers flying around the world, the potential for the IFE business is content service providers. staggering. According to IATA some 3.6 billion passengers flew in 2016 and it is In-flight entertainment (IFE) has Today IFE is integral to the overall estimated that around 750 million of these come a long way since 1921, when passenger experience and is offered as an will have been exposed to IFE services. It’s a Aeromarine Airways showed the film Howdy option on almost all wide-body aircraft and huge market and one that CSPs are making Chicago to its passengers as they flew around even some narrowbodies too, either the most of. Chicago. A DeVry suitcase projector was embedded in screens on the aircraft or Typically, airlines will appoint traditional strapped to a table in the aisle of the through in-flight Wi-Fi on personal electronic or boutique CSPs, such as Global Eagle, 11-seater aircraft to screen the film and there devices (PEDs). Global One Media, Inflight Dublin, Spafax or was no audio. Aside from ticket prices, passenger Stellar to purchase and manage their IFE But it was then not until after the 1960s experience is the most crucial factor as to content, which ranges from Hollywood that IFE (in terms of screen entertainment) whether airlines get repeat business or blockbusters, to TV shows, documentaries, became more mainstream. And it was only in recommendations. So, despite the huge costs gaming and audio. the 1990s that the demand for video, TV, – according to market researchers, Research “There are a handful of big airlines who gaming and audio entertainment really and Market, IFE services cost airlines an will deal directly on the commercial side with gathered pace, becoming a major element in estimated US$2.85 billion in 2015, a figure studios, because they have the bandwidth the design of aircraft cabins. that is expected to rise to $5.8 billion in 2020 internally to go through the procurement Inflight www.inflight-online.com P.5 / Infocus / Content 2017 The increase in Wi-Fi connectivity and PEDs means that CSPs can now stream content directly to personal devices. process of purchasing films and the associated rights,” says Amir Samnani, SVP content services at Global Eagle. “However,” he continues, “when it comes to screening, processing and editing those films, an airline won’t have the relevant equipment or capabilities, so it makes sense for them to go through a CSP.” Currently working with over 85 airlines, Global Eagle has agreements in place with all the major Hollywood distributors, as well as independent and foreign distributor companies. Samnani explains that once that an airline can save up to $24 million for a WHAT FLIES AHEAD content has been secured, it must be 200-seat aircraft when the traditional on-board One of the biggest focuses for CSPs thoroughly vetted, and often translated into IFE is replaced with PEDs. moving forward, and particularly with multiple languages, before being added to an Airlines around the world are already the emergence of in-flight Wi-Fi, is to airline’s IFE catalogue. embracing on-board connectivity. Virgin look beyond the traditional IFE content “There is a standard guideline that has America has teamed up with ViaSat to enable services they provide by exploring new been created detailing what is acceptable for passengers to stream Netflix content on opportunities, such as destination content viewing on airlines,” he says, outlining that board its aircraft, while carriers such as and shopping services, as well as subject matter such as scenes of terrorism Qantas and JetBlue are offering their personalising the experience for passengers. and violence are generally best avoided, passengers free high-speed Wi-Fi in-flight Joshua Flood of Valour Consultancy, while it’s also important to be aware of services. But, says Samnani, rather than which is producing a report on the ‘Future of religious and cultural sensitivities. In feeling threatened by this advancement in Inflight Entertainment’, reveals that “airlines addition to these standard guidelines, technology, CSPs should see it as an are becoming more aware of the potential to individual airlines might have their own enhancer, something that opens up generate ancillary revenues via product and requirements that CSPs need to adhere to opportunities and complements the services destination services advertising”. when screening content. already available on board. What’s more, Flood explains that the “It’s also important that we work This is certainly true for the team at Global expansion of connectivity on board simultaneously with distributors to make One Media. “As technical cabin designers, commercial aircraft is opening up a them aware of what we are editing out or connectivity is part of our planning,” says multitude of capabilities for airlines changing, so that they remain the content Reboisson. But, he admits there are still some (particularly around personalisation), and owners,” says Samnani, revealing it’s a challenges to be overcome: “Daily updates choices for passengers to use different question of keeping all parties happy. “The such as news and sports have always been a services. “Why,” he asks, “should travellers providers need to be comfortable with what challenge with audio/video on demand expect the airport duty-free selection to be we’re doing, but we also need to make sure (AVOD) technology. Connectivity has the pinnacle of their shopping experience?” the content is suitable and appropriate for resolved this with the introduction of Ku and Passengers are, after all, “a known our airline clients.” GX Ka Live TV, however AVOD will remain demographic with high levels of disposable the main source of content due to bandwidth income captive in a metal tube for hours on THE CONNECTED AIRCRAFT restrictions and airline content control.” end,” Flood concludes. “When faced with The recent increase in personal electronic There’s also an issue over rights and the right content, passengers can and will devices (PEDs) and internet connectivity on licensing when it comes to passengers spend money on ancillaries.” board aircraft is transforming the IFE travelling between different countries and The opportunities for CSPs to capitalise industry, as the combination of these streaming content on board to PEDs. While on this market are seemingly endless. elements means that companies are now able Netflix for example won’t necessarily have They just need to think beyond traditional to stream content directly to a passenger’s secured the rights for films to be watched in audio and video content and seek out handheld device, without the need for different territories, CSPs will have secured innovative and logistical solutions that expensive embedded hardware.
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