Since announcing the arrival of Netflix on board Virgin America in 2015, Netflix has seen solid engagement in flight. Over the past two years, more partnerships have been made with Aeromexico, Qantas, Virgin Australia, and others. Through these partnerships, Netflix has gathered insightful data including playback metrics, which led to the launch of a new service, Netflix Inflight 2.0.
Early next year, Netflix will deploy encodes to provide airlines with better insights on buffering times. “We’ll be able to monitor our video playback metrics to ensure [passengers] have the greatest experience on your flight,” said Spencer Wang, vice-president, Finance and Investor Relations at Netflix, Inc.
“By removing the fear about bandwidth costs, airlines will start actively promoting video streaming in flight.” – Spencer Wang, Netflix
Airlines need only provide Netflix with their IP ranges for upgraded fleets. “And by partnering with us this will result in significant bandwidth savings for carriers,” he said. “Instead of worrying about bandwidth, you can now support and promote certain in-flight services as a core part of your offering rather than sticking it on some kind of premium tier.”
Wang says when consumers find out that an airline like Virgin bundles Netflix offers with free Wi-Fi, there’s an average 30 percent “uplift” in passenger loyalty. “By removing the fear about bandwidth costs, airlines will start actively promoting video streaming in flight so that we can please our mutual customers.”