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In-flight Entertainment Revenue will Reach $8.4 Billion

In-flight Entertainment has been the norm on long-haul flights for several decades. In an age where permanent Internet connectivity is commonplace, in-flight Wi-Fi and cellular connectivity is now becoming a standard as well. Developing communications technology, the changing nature of the airline industry and the increasing desire for passengers to stay connected at all times are driving the deployment of new services. Broadband connectivity is drastically changing the consumer passenger experience, the business passenger experience and the operational challenges aircraft operators face. In-flight Entertainment Market Development According to the latest worldwide market study by Juniper Research, increasing adoption of in-flight entertainment and connectivity systems by airlines and private aircraft operators will drive annual service revenues from an estimated $3.7 billion in 2018 to reach over $8.4 billion by 2023. The research found that systems installation by Low Cost C...

Digital Transformation of In-Flight Entertainment Services

In-flight entertainment has been available on long-haul flights for several decades and increasingly, in an age where permanent Internet connectivity is becoming the norm, in-flight Wi-Fi is now becoming a standard service offering for airlines. Digital transformation, developing communications technology, the promise of ancillary revenues for airlines and increasing demands from passengers to stay connected at all times are driving the deployment of new services across both large airlines and smaller low-cost carriers. In-Flight Internet Access Market Development According to the latest worldwide market study by Juniper Research , commercial aircraft adopting in-flight Wi-Fi services will reach 14,419 globally by 2022 -- that's up from an estimated 5,243 in 2017. This will mean that over half of the global fleet of commercial passenger airplanes will offer these services in 2022, compared with just under a quarter this year. This increase will be driven by the impact of th...

In-flight Wi-Fi Service Revenue to Surpass $1.5 Billion

During the past year there has been significant growth in both the usage rates of in-flight broadband internet access and number of planes deployed with the capability. As new providers enter the emerging global market, growth is sure to continue in the coming year. Additionally, what has to date been predominantly a U.S.-centric market began to see an expansion of borders -- with deployments in Europe growing over the past year and new activity in the Middle East. According to the latest market study by In-Stat, they now forecast that in-flight Wi-Fi revenues will surpass the $1.5 billion mark in 2015. “While airlines initially viewed in-flight broadband as a competitive differentiator, it is now simply viewed in the U.S. market as a competitive requirement,” says Amy Cravens, Senior Analyst at In-Stat . The future of in-flight Wi-Fi will be less about convincing airlines of the merit and more about leveraging the network to provide a broader breadth of services. As ...

Sky-High Price Limits In-Flight Broadband Service

Wi-Fi connectivity deployments in airplanes have grown rapidly from a couple dozen in 2008 to an expected 2,000 planes by end of year 2010. While Internet access availability is progressing, paid usage generated from in-flight broadband service has been extremely low, according to the latest market study by In-Stat . In-Stat believes that in-flight broadband is now at the stage of market development where it must prove its sustainability through the ability to generate meaningful revenues. However, the current high price of services has limited the prospects of further adoption. That scenario may be subject to change. "Revenues from in-flight broadband will reach $95 million in 2010, up from just under $7 million in 2009," according to Frank Dickson, VP Research at In-Stat. "However, the fee per connect is expected to deteriorate as lower connect fees are negotiated for roaming and billing partner subscribers." Data points that impact revenue include: - Conn...

Upside for Airline Passenger Entertainment

Video is a high growth market segment. Live broadcast video is poised for significant growth in 2009, according to the latest market study by In-Stat. 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 i...

Consumers Join Mile High Broadband Club

There's a new mile high club, where people access the Internet from their passenger seat in a jet plane. The number of broadband enabled airplanes will increase from 25 in 2008 to 800 in 2009, according to the latest market study by In-Stat. As a result, broadband ready airline passengers will generate over $47 million worldwide in 2009. The in-flight broadband market is still emerging and will grow well beyond $1 billion annually by 2012. "The market is clearly gaining momentum, with deployments escalating in number," says Daryl Schoolar, In-Stat analyst. "However, in-flight broadband faces challenges, however, by the struggling economy and competing non-traditional IFE solutions." Live broadcast video is also poised for significant growth in 2009. While this service is more established than in-flight broadband, usage revenues are still anticipated to nearly double in 2009 and continue to grow strongly through 2013. In-Stat's market study found the followin...