Direct Video Broadcast Competes with In-Flight Broadband for Airline Passenger Entertainment Dollars
SCOTTSDALE, Ariz., June 18, 2009 -
Live broadcast video is also poised for significant growth in 2009, according to market research and consultancy firm In-Stat http://www.in-stat.com. While this service is more established than in-flight broadband, usage revenues are still anticipated to nearly double in 2009 to reach almost a quarter of a billion dollars, nearly five times the size of the in-flight broadband market.
However, the compelling demand for Wi-Fi connectivity among airline passengers drives higher growth for in-flight broadband. By 2011, in-flight broadband service revenue will exceed that of direct video broadcast, with in-flight broadband revenues of $761 million.
“The airline industry is desperately trying to better monetize its cabins,” according to Frank Dickson, In-Stat Vice President of Research. “Direct video broadcast services and in-flight broadband services are two compelling ways that provide passengers with a better customer experience while allowing the airline industry to add incremental revenue. It is a true win/win.”
Recent research by In-Stat found the following:
The majority of direct video broadcast deployments belong to LiveTV, with Panasonic being their largest competitor.
In-Stat expects that, in later forecast years, IPTV will contribute a portion of in-flight video revenues.
The number of broadband enabled airplanes will increase from 25 in 2008 to 800 in 2009.
Airline passengers will generate over $47 million worldwide in 2009. In-flight broadband equipment revenue will nearly double between 2009 and 2013.
In-Stat forecasts over 200 million annual in-flight broadband connects by 2013, with long-haul connects dominating over short-haul connects.
Recent In-Stat research, Delayed Departure: Will In-Flight Broadband Take Off? (#IN0904520WBB), covers the market for next-generation in-flight entertainment (IFE), with a focus on
in-flight broadband services. The global report includes:
Forecasts of in-flight broadband and DBS video, including installments, equipment revenues, usage, and usage revenues, with segmentation regarding the length of the flights.
Expectations of in-flight IPTV introduction and ensuing revenue.
Detailed comparisons of principal competitors and customers, in terms of technologies, business models, and market share.
Correlations with the hotspot market and strategies learned from terrestrial Wi-Fi services that can be applied to the in-flight market.
This research is part of In-Stat’s Wireless LAN service, which examines new applications for WLAN chips and devices in the business, home, and public sectors. The service covers emerging technology trends, as well as extension technologies like wireless mesh networking and wireless security.
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In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.
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