In-flight Streaming Deals Offer New Market

 In a novel turn of events, the in-flight entertainment has entered the streaming age. In a rapid evolution from the plane-wide single offering, through seat-back screens, it seems Delta is willing to take a gamble on streaming licensing. We asked entertainment lawyer with Blake and Wang P.A, Brandon Blake, about this new development.



                                                 Brandon Blake

2-way trend

Both Southwest and American Airlines, on the contrary, have chosen to ditch their seat-back screens and save on licensing costs, assuming travelers will carry their own range of devices. Delta, however, has made a different gamble. 

 

Stats suggesting that 75% of their 8 million monthly passengers still engage with the seat-back system on flights with it installed. Now Delta is hoping to lure passengers with streaming content deals with Netflix, HBO Max, Disney+ and Showtime, as well as Spotify, Neon, and A24.

A new streaming market

Delta has been courting the entertainment industry for novel partnerships for a while now. This may, however, be the first time their antics could result in a new entertainment market instead of mere one-off stunts.

 

The changes have required a fair chunk of infrastructure investment, including swapping their in-flight Wi-Fi carrier to allow for better entertainment delivery, so it’s a gamble. The idea is to create the at-home experience in the air, through paid services and access of course, rather than allowing passengers to use their own devices to achieve a similar result. The consumption figures are not small, either- 2.2 billion unique views and 37.7 million hours of viewing in 2021 alone. 

 

It’s an interesting market for the entertainment industry, and while it may never be a massive player, third-party research suggests the U.S in-flight sector is worth several hundred million dollars annually, and many do believe there is still growth potential. Needless to say, improved tech delivery should help the sector grow, too. 

 

With most media companies looking for innovative ways to leverage direct-to-consumer revenue, will this become a wider entertainment phenomenon, or a Delta gimmick only? It will be interesting to watch developments for the sector. 

 

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