Good Bye Stale Old Movies, Live In-Flight Video Revenue to Exceed $ 900 Million by 2012 Print

Scottsdale, Ariz., June 30, 2008—The market for in-flight live direct broadcast video revenue is projected to grow to $ 913 million in 2012, according to recent research by MultiMedia Intelligence. With revenue of $ 87 million in 2007, live in-flight video promises impressive growth.

 

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"The current environment of increasing fuel prices and downward pressure on fares has been painful to the airline industry," according to Amy Cravens, contributing analyst with MultiMedia Intelligence. "The result has been that airlines have been aggressively pursuing new revenue streams. In-flight live direct video broadcast services are 'a no-brainer,' offering a value service to passengers and new revenue to the P&L."Even with the current constraints in the airline industry, usage revenues are still anticipated to nearly double in 2009. The majority of video deployments will result from a single player, LiveTV, with Panasonic being their largest competitor.

MultiMedia Intelligence’s new research also found:

  • MMI expects that in later forecast years in-flight IPTV will contribute a portion of video revenues; however, it will be a small percent of satellite-based TV (approximately 1.5% in 2009).
  • Airline expenditures on direct broadcast video is on the rise. Installation revenues will rise to over $147.6 million by 2012. It should be noted that installation revenue does not rise at the same rate as service revenue as MMI projects a declining cost per installation over the forecast period.
  • The market for in-flight broadband services is poised to overtake live in-flight revenue in 2012, growing to $936 million in 2012. MultiMedia Intelligence (MMI) anticipates such broadband services to have a projected 2H 2008 launch of revenue service (initially trials, with full launches ensuing).

The research, "Broadband in Flight: Wi-Fi and Direct Broadcast Video Become the Next Generation of In Flight Entertainment" examines the market for next generation in-flight entertainment (IFE), with a focus on in-flight broadband services. For more information, contact:

Rick Sizemore

(480) 213-4151

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About MultiMedia Intelligence

MultiMedia Intelligence, a market research and consultancy firm, specializes on the markets and technologies for delivering and monetizing digital content and services across multiple platforms. We look beyond the classic 'three screens,' which include TVs, mobile handsets, and computers. We put markets into the broader context of the industry ecosystems that are converging and changing traditional business models.