The inflight entertainment industry has “hotted up” recently with the merger of Global Eagle – Row44 and Advanced Inflight Alliance – based upon a bundling of services. In this instance, it’s the bundling of Content and Technology (inflight connectivity).
Here at Spafax we agree that the market is looking at a level of bundling but in our opinion there are a number of alternative options available to the industry.
Bundling of IFE and Media Sales
In our model, the provider of the Content – the “experience” which gets customers to interact – is also responsible for the media sales around it. After all this is the core revenue model for mainstream media, whether they’re “old” or “new,” owned or licenced.
Bundling of IFE with the broader brand proposition
Inflight entertainment is so much more than distributing Content (created or curated) to passengers. If done well, it has the ability to communicate the airline’s brand values to customers in a way that is aligned with all other communications distributed in the air, at home, or on the go.
Focusing on these two ideas allows Spafax to deliver either the greatest immediate value to the airlines or building brand loyalty (or both, if we bundle the bundles, to build yet further ancillary revenues). It allows us to be platform/technology agnostic and to build connections across every touchpoint throughout the journey cycle.