How Inflight Live TV Can Counter THE THREAT OF STREAMING SERVICES
Airlines worldwide will soon be exploring how the next generation of inflight live TV can counter the threat streaming services pose to IFE.
The value of the IFE market reached $2 billion in 2015, with spending on content made available to the market ranging from $450 million to $500 million, according to Aircraft Interiors International.
However, IFE faces potential challenges from changes in the film industry such as theatrical release windows being significantly shortened.
Studios are also now owning their own streaming platforms or striking distribution deals with other streaming services to bring movies direct-to-consumer (DTC), as opposed to third-party distribution through theatrical release.
This poses a real risk of the removal of content licensing for airlines. Studios can choose not to license out their movies or TV shows to airlines and opt for alternative lucrative platforms.
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The global pandemic has only exacerbated the situation by halting all content production and forced movie release dates to be pushed back or moved to PVOD (premium video-on-demand) or streaming services.
As a result, several studios made the decision to release their movies simultaneously in cinemas and on their streaming services.
Recent notable examples include Warner Brothers’ Wonder Woman 1984 that was released in cinemas and HBO Max on the same day. Marvel’s Black Widow was also a simultaneous release in cinemas and on Disney+.
For airlines, this has forced them to make drastic changes to their IFE offerings by lengthening content cycles to bi-monthly or quarterly updates in the bid to save costs.
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One other challenge streaming services and the pandemic has created is the heightened expectations when consuming IFE.
Due to extended periods of restricted movements and working from home, consumers have spent more time on streaming services. As a result, they have been “spoiled” by high-quality user interfaces that provide a good experience and quality content.
Clunky IFE systems with unfriendly user interfaces that deliver poor-quality content will not be able to satisfy the post-pandemic audience.
In addition, low prices for subscriptions for streaming services will hinder consumers from paying exorbitant fees to consume IFE content, even if it is premium or new content.
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The disruption in the supply of content has exposed the high cost and operational challenges faced when delivering an inflight entertainment experience to consumers.
Airlines will potentially have to work with streaming services like Netflix, Disney+, Hulu, HBO Max and the recently strengthened Amazon Prime Video which acquired MGM in 2021 to license content.
The IFE industry must also develop a strategy for future entertainment experiences in a post-pandemic world which also assumes that there may no longer be certain content to license. They must explore how to bring alternative premium content to passengers while keeping operational costs low.
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NEXT
GENERATION
INFLIGHT LIVE TV + LIVE RADIO
To counter challenges posed by changes in the film industry and streaming services, airlines can explore the new evolution of premium inflight content in the form of Next Generation Inflight Live TV & Live radio.
IIM+ has devised and patented a signalling server technology that allows the use of live TV without the need to install additional hardware or even implement new software.
This next generation inflight IPTV allows the streaming of live sports events, live TV and inflight live radio at much lower costs compared to traditional technology.
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