APEX TECH: Snapshot of the Wireless IFE Landscape
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The APEX TECH conference in Newport Beach kicked off this morning with an overview of the current state of wireless IFE, presented by Patrick Préfontaine, vice-president of Strategic Partnerships at Global Eagle Entertainment.
In his keynote address, Préfontaine says that although wireless IFE is a relatively young technology, airline interest and installations are being driven by the over 2 billion smartphones and tablets in worldwide use. On the ground, mobile devices now account for 25 percent of online viewing. In 2013 in the United States alone, 200 million people used their tablets and smartphones to watch content. And those numbers continue to grow.
In the air, 69 percent of passengers already use their own smartphone or tablet for listening to music, playing games, reading and watching pre-loaded video.
Passengers are clearly “equipped’ for wireless IFE, and they’re primed to access streamed content in the air. Airlines are looking to provide enhanced tablets to those who don’t “BYOD” – bring your own device.
The market for wireless IFE is huge, with potential targets of over 11,000 in-service aircraft and 500 new single-aisle aircraft per year. Today, over 2,100 aircraft are set up for wireless IFE, and the majority are in aircraft that have in-flight Internet connectivity but no existing IFE system. Préfontaine suggests that the revenue potential for wireless IFE has been tested, but is not yet proven. But will the revenue generated ever offset the cost of a wireless IFE system? “There isn’t an answer yet, but I don’t think so,” he says.
Wireless IFE installations can offer the passenger a new in-flight experience, but Préfontaine says that management of the multitude of devices and operating systems is a critical factor in making the experience a positive one. The regional differences in device popularity also needs to be addressed.
Préfontaine says that although wireless IFE “is here to stay, it won’t replace in-seat IFE systems anytime soon.” However, he suggests that the number of near-term wireless installs may surpass wired systems, and may complement or replace overhead screen systems on single-aisle aircraft.
Préfontaine also offered an example of a new wireless application, outlining Southwest Airline’s new partnership with Apple-owned Beats Music. The service gives Southwest passengers in-flight streaming access to over 100 Beats Music playlists on their personal devices. Launched just this November, the service is “powered” by Global Eagle Entertainment.