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Walt Disney Films next for Digeplayer...also note the very serious talks with several other customers.
Baggage Handler Invents Alaska Air's New Video Player
29 September 2003
Airline Financial News
Vol. 21; Issue 37
English
(c) 2003 Phillips Business Information, Inc.
Bill Boyer, an entrepreneurial Seattle resident and a part-time ramp employee at Alaska Air [NYSE: ALK], designed a new portable video entertainment device that Alaska plans to offer next month on its long-haul aircraft.
A $2.5 million project developed by Boyer's APS Inc., the digEplayer will provide Alaska with a low-cost alternative to expensive in-flight entertainment systems that more and more airlines are now offering. The airline will pay about $1,000 per unit for the initial order of 1,000 units. The 2.4-pound unit with a 7-inch screen will have nine "first run" movies from Twentieth Century Fox, TV sit-coms and cartoons, 10 hours of digital music plus travelogues of destination cities.
The digEplayer is a flexible alternative to the seatback television systems offered by LiveTV and others. Like many airlines, Alaska does not have aircraft dedicated to specific routes. If it installed a hard-wired system, the entertainment system would have to be installed in each plane, said David Palmer, the airline's marketing director. Initially, Alaska plans to have 48 devices on each transcontinental flight. The units can easily be shifted from plane-to-plane.
The airline does not face the $500,000 per plane investment in equipment, wiring and antenna. It will save money on the initial investment and fuel on each flight. According to Boyer, another airline considering the APS system has five tons of in-flight entertainment equipment on each of its Boeing [NYSE: BA] 747s. With the APS system, Boyer said, it could fly an additional five tons of revenue producing freight.
Boyer said the device could generate revenue from service charges and advertising. He estimates that Alaska will recover its investment in less than a year.
Alaska will provide a player to each first class passenger at no charge. It will charge coach passengers $8 a flight if it is reserved ahead of time. The user fees will be the airline's to keep.
APS and Alaska will split revenue generated from ad sales. Some of the ads will be discreet logo placement and others will be infomercials tied to destinations. Passengers can fast-forward past the ads.
Alaska was to have been the launch customer of LiveTV (before JetBlue [Nasdaq: JBLU] purchased the firm). However, the airline dropped plans for the service because of cost and satellite reception concerns. When the aircraft crosses over into Canada the TV signal is lost and the signal reception is poor in Alaska.
"I had the idea for a whole system and I went to Dave Palmer. He liked the idea, but said that without content it was just 'an empty box.' He challenged me to go find some content and return."
A 16-year employee of Alaska, Boyer had earlier invented a bumper device to be used on baggage belt loaders. APS was formed in 1997 to market the bumpers.
Boyer, who also owns two coffee shops in Seattle, turned to a regular patron, Roy Henson, a former software engineer, for computer advice. He crafted one of three encryption systems in the device designed to prevent the theft of the movies. Boyer then approached e.Digital [OTC: EDIG] in San Diego, an established designer of MP3 players and voice recorders.
The company had done some preliminary work in developing a portable video platform, said CEO Fred Falk. The key to making the digEplayer was to obtain the content and protect it in a totally "legal environment."
With the encryption in place, Boyer approached Hollywood studios to secure content. After nearly 18 months of negotiations, APS has a license with Fox to provide the programming. At the moment, he said, the licensing is limited to airline customers. Walt Disney Studios, he said, will also be providing its films in the near future.
Alaska is just the first airline customer for APS. Boyer said he is in "very serious" talks with several others that he cannot name. Boyer plans to take APS, with all 10 employees, public after a few more deals. The company, in which he holds about 65 percent of the equity, has "zero debt and with the Alaska Air deal we will be profitable." The player was developed with funds from friends, family and angel investors.?
>>Contact: Bill Boyer, APS, (253) 222-7910; David Palmer, Alaska Air, (206) 392-5274; Fred Falk, e.Digital, (858) 679-1504. <<
Aviation Daily...Alaska Air To Launch Inflight Media Player On Long Routes
SL
15 September 2003
Aviation Daily
Volume 353, No. 53
(c) 2003 McGraw-Hill, Inc.
Alaska Airlines next month plans to start offering all customers a portable, handheld media player that will give passengers several inflight entertainment choices, including first-run movies.
The APS digEplayer, created by long-time Alaska ramp service agent Bill Boyer, "is unlike traditional inflight entertainment systems because it literally puts the choice of what to watch or listen to in the hands of customers," the airline said. The carrier will launch the device in October on transcontinental flights between Seattle and Newark, Boston, Miami, Orlando, Washington National and Washington Dulles, as well as between Anchorage and Chicago. Plans to expand it to more routes are under review.
"We've wanted to offer an inflight entertainment system on our long-haul flights for some time, but the challenge has always been how to deliver multiple options without installing a costly system in every aircraft," said Dave Palmer, managing director-marketing. "By using this digital technology, we've conquered the challenge."
The digEplayer is about the size of a DVD player but has better audio and video quality, the airline claims. The system also will carry first-run movies, classic films, television shows, children's programming, music and video games. "For the first time, air travelers will have real inflight entertainment options," said Boyer, CEO of Seattle-based APS, Inc. Boyer also is known for inventing a safety bumper for Alaska's belt loaders to protect aircraft.
The units will be available at no extra charge to all first-class passengers, and at least 32 units will be available in the main cabin for rental ($8 when reserved in advance on alaskaair.com and $10 on board). Alaska will receive a commission from each rental and a percentage of ad sales. Initially, the system will offer nine movies, three television shows and 10 hours of music.
Samsung Lifts the Veil on Global Performance, Surge in Brand Value, and Corporate Strategy.
NEW YORK-(BUSINESS WIRE)-Sept. 16, 2003-Samsung Electronics
Impressive Product Gallery, Napster Announcement, and Presentations By Senior Management Anchor DigitAll Inspiration Showcase
Mr. Jong-Yong Yun, Vice Chairman and CEO of Samsung Electronics Co. Ltd., provided new insights on how Samsung achieved continuing profitability, as well as dramatic growth in brand value, at the DigitAll Inspiration 2003 product showcase.
Staged at the famed Cipriani's on 42nd Street, the event featured presentations by top Samsung executives, including Vice Chairman and CEO Jong - Yong Yun, a comprehensive product gallery, and profiles of Samsung's latest offerings in handheld phones, digital TVs and home entertainment. During the opening speech Mr. Yun unveiled Samsung's new plan to achieve its vision, becoming the leader in the Digital Convergence Revolution. With the restructuring of the business portfolio into four strategic business areas, home, mobile, office and core components, Mr. Yun announced key businesses within the four strategic business areas. They are home networking, EV-DO wireless network products, the Infomobile exchange system for wired and wireless business communication, and the 533 MHz mobile CPU.
Mr. Yun also noted that Samsung would continue to invest in people and technology to sustain the efforts to transform the company through market driven change. "Business entities cannot survive without innovation as they face numerous changes and uncertainty. Samsung will continue to create solutions that vitalize and enrich your lifestyle," said Mr. Yun. "Technology spawns the future; people are key to technology."
A highlight of the DigitAll Inspiration showcase was Samsung's announcement of a new technology and marketing partnership with Napster, centered around a portable music device designed specifically to work with Napster 2.0.
Other presentations at the DigitAll Inspiration showcase featured Mr. Dong Jin Oh, the President and CEO of Samsung Electronics America, and Peter Weedfald, Senior Vice President of Strategic Marketing for Samsung Electronics America. The two U.S. executives reviewed Samsung's business and retail strategies in North America and demonstrated cutting edge products.
Wide Range of Products Displayed
The wide range of key products showcased at DigitAll Inspiration 2003 included:
- 70-inch Plasma Display Panel (PDP) television - With its large screen and excellent picture quality, Samsung's 70-inch PDP TV delivers an entirely new viewing experience, offering realistic high definition (HD) imaging even in daytime settings.
- 54-inch TFT-LCD television - This television from Samsung features a crisp, high-resolution image and excels in performance with its less than 12ms response time - ensuring a smooth playback of even the most action-packed visual content.
- DVD-HD931 - Samsung unveils the world's first DVD player to use a digital visual interface (DVI) to deliver an up-converted signal to output high-definition formats (720p/1080i).
- HT-DB660 - Samsung's 5.1 rear-reflecting channel surround sound system eliminates the hassle of stringing cables around the room for audiophiles and those consumers who like true-to-life sound.
- SGH-P705 - A small and lightweight phone with a built-in NTSC television and full GSM/GPRS capabilities. Despite the diminutive size, the device's striking, 260,000 color TFT LCD display provides true to life images to ensure viewing pleasure.
- YP-60 Yepp Sports - The first digital music player designed with the active lifestyle in mind. Including a stopwatch as well as a heartbeat monitor that automatically calculates the calories burned during a workout, this light-weight, splash-proof device is ideal for mobile consumers.
- ITCAM-9 - The world's first Hard Disk Drive (HDD) digital camcorder offers today's consumers a variety of options to capture their favorite moments - whether on video, audio or image. Samsung's ITCAM-9 uses a 1.5 GB HDD to store still and motion pictures, as well as music, audio and data files.
- SyncMaster 403T - A powerful 40-inch TFT-LCD display monitor geared for the commercial marketplace. Samsung's SyncMaster 403T features a slim form factor and uses its own proprietary, patented Patterned Vertical Alignment (PVA) technology to achieve a 170 degree viewing angle in all directions.
- CLP-500 series - Samsung's color laser printer, the CLP-500 series Samsung is designed for small-to-medium-sized business users. As seen with Samsung monochrome laser printers, the color printer will offer unsurpassed ease of use and latest innovation in technology.
- Home Media Center - Samsung's Home Media Center is an all-in-one digital home server. Thanks to Samsung's Home Media Center, consumers will have the ability to share a variety of multimedia content between AV and IT devices within the home. The Home Media Center runs on an imbedded Linux OS supporting Universal Plug and Play.
- Digital Natural Sound engine and Digital Natural Image engine - Digital Natural Sound engine guarantees a more accurate and natural sound in any home listening environment. Digital Natural Image engine (DNIe) is a set of advanced image processing technologies that ensures enhanced contrast, detail, white tone and noise reduction for visual displays such as plasma and DLP televisions.
Deloitte & Touche Announces Alphabetical List of 2003 San Diego Technology Fast 50 Winners.
635 words
16 September 2003
05:20
Business Wire
WHAT: Deloitte & Touche LLP, one of the nation's leading
professional services firms, is pleased to announce an
alphabetical listing of its 2003 San Diego Technology Fast 50
winners. The Fast 50 ranks the 50 fastest-growing technology
companies in San Diego County over five years (1998-2002). A
special category called "Rising Stars" recognizes the
fastest-growing technology companies based on revenue growth
over three years (2000-2002).
This year's San Diego Technology Fast 50 program is
co-presented by Deloitte & Touche, Comerica, Cooley Godward,
Fleishman-Hillard, Focus Creative, KPBS, Marsh, R.J. Watkins,
The T Sector, and in association with AeA and BIOCOM.
HOW: Technology Fast 50 winners are selected based on the
percentage of growth in revenues from 1998 to 2002. To be
considered, entrants must be based in San Diego County, and
must be a technology company defined as owning proprietary
technology that contributes to a significant portion of the
company's operating revenues (using other companies'
technology in a unique way does not qualify); and/or devoting
a significant proportion of revenues to research and
development of technology.
WHEN: Announcement of the San Diego Technology Fast 50 and Rising
Star winners ranked by growth percentage is scheduled for
Wednesday, September 17, at the Hyatt Aventine, La Jolla.
WHERE: Visit www.fast50.com for more information on the Technology
Fast 50 program.
WHO: 4-D Neuroimaging (San Diego)
American Technology Corporation (San Diego)
Applied Micro Circuits Corporation (San Diego)
Applied Molecular Evolution, Inc. (San Diego)
Biosite Incorporated (San Diego)
Captiva Software Corporation (San Diego)
Cardiff Software, Inc. (Vista)
CardioDynamics International Corporation (San Diego)
ComGlobal Systems, Inc. (San Diego)
Continuous Computing Corporation (San Diego)
Digirad Corporation (San Diego)
Discovery Partners International (San Diego)
Diversa Corporation (San Diego)
DJ Orthopedics, Inc. (Vista)
e.Digital Corporation (San Diego)
Epimmune Inc. (San Diego)
IDEC Pharmaceuticals Corporation (San Diego)
ImageWare Systems, Inc. (San Diego)
Information Systems Laboratories, Inc. (San Diego)
Innovative Medical Services (El Cajon)
Invitrogen Corporation (Carlsbad)
ISIS Pharmaceuticals, Inc. (Carlsbad)
JNI Corporation (San Diego)
Koam Engineering Systems, Inc. (San Diego)
Ligand Pharmaceuticals Incorporated (San Diego)
Lightspan, Inc. (San Diego)
MAXIM Pharmaceuticals (San Diego)
Miracor Diagnostics, Inc. (San Diego)
Mitek Systems, Inc. (Poway)
MUSICMATCH, Inc. (San Diego)
Nanogen, Inc. (San Diego)
Novatel Wireless, Inc. (San Diego)
Overland Storage, Inc. (San Diego)
Predicate Logic, Inc. (San Diego)
ProfitLine, Inc. (San Diego)
Prometheus Laboratories, Inc. (San Diego)
Protein Polymer Technologies, Inc. (San Diego)
ResMed Corporation (Poway)
SEQUENOM, Inc. (San Diego)
SeraCare Life Sciences, Inc. (Oceanside)
SmartDraw.com (San Diego)
SourcingLink.net (San Diego)
SureBeam Corporation (San Diego)
Terra-Kleen Response Group, Inc. (San Diego)
The Titan Corporation (San Diego)
ViaSat, Inc. (Carlsbad)
Websense, Inc. (San Diego)
WIDCOMM, Inc. (San Diego)
Wireless Facilities, Inc. (San Diego)
Women First HealthCare, Inc. (San Diego)
Japan's Autobacs set to open flashy store
Cziborr, Chris
11 August 2003
Orange County Business Journal
3
Volume 26; Issue 32; ISSN: 10517480
2003 Bell & Howell Information and Learning Company.
Autobacs store: 40,000 square feet
Japan's Autobacs Seven Co. plans to open an upscale automotive accessories store in Stanton by month's end, its first in the U.S.
"We want to see how well this store does over the next year-if it does well then we know we should move on to opening other stores," said Jack Hara, Autobacs senior vice president. "We'll know our customer base by then."
Autobacs officials say they want the company to be as big in the U.S. as it is in Japan. That's saying a lot: Autobacs brings in $1.8 billion a year in sales and has more than 500 stores in Japan.
The 40,000-square-foot Super Autobacs store in Stanton is set to sell fancy wheels, tires, car stereos, navigation systems, high-end motor oil, cup holders, child seats and themed interior accessories.
Autobacs' selection is heavy on Japanese brands, including products that otherwise would be hard for people to get here.
"The big piece of the puzzle is going to be their advertising and marketing plans-getting the word out and getting consumers familiar with their approach," said Tony Cherbak, partner of the consumer products group at Deloitte & Touche LLP's Costa Mesa office.
Autobacs officials say they plan to do print advertising. Otherwise, they're hoping car enthusiasts spread the word about the store.
"Any trend in auto culture starts here," Hara said. "Southern California is clustered with motorheads."
In picking Orange County as its beachhead, Autobacs is following Japanese automakers Mazda Motor Corp., Suzuki Motor Corp. and Mitsubishi Motors Corp., which have North American bases here.
The Autobacs store is at the site of a former movie theater. The company's U.S. headquarters is in the same shopping plaza and covers about 4,000 square feet.
The store has a garage with pit services so buyers can have stuff put on their cars while they watch from a waiting area with a 100-foot catwalk. On the catwalk: Autobacs installation garage
Irvine construction company Snyder Langsten LP built the first phase of the project. Autobacs switched to Pasadena-based Kajima Engineering and Construction Inc. to finish the project, Kara said. The company is a U.S. subsidiary of Tokyo-based Kajima Corp.
Hara said he sees Autobacs competing with specialty stores, including Wheel Warehouse in Anaheim. He said he doesn't expect much overlap with big chains such as Philadelphia-based The Pep Boys-Manny, Moe & Jack.
"We're different from Pep Boys-we have more higher-end stuff," Kara said. "We have more fun products. They have more commodity products like parts."
Autobacs plans to go after shoppers on a budget who want to boost their cars with "so-called top-end products," Kara said.
"We'll be competing on price," he said. "But we also want to attract people who like the idea of one-stop shopping where they can get their products installed onsite."
The company could impact the area's smaller independent stores, according to Deloitte's Cherbak. They could have a tough time competing with Autobacs on price because the Japanese retailer buys bulk quantities of its products.
"When you're dealing with a really well-capitalized company, not only are you dealing with the cost equation due to the volumes that it can purchase, they've also got the ability to advertise and the ability to market," Cherbak said. "The smaller independents are going to have trouble matching that."
Autobacs stands to lure shoppers from car stereo shops with its audio department, which sells upscale gear from Japan. Among the offerings is Eclipse from Kobe, Japan-based Fujitsu Ten Ltd., which makes car compact disc players, amplifiers and speakers.
"There is a need for a little bit higher car stereo retailer, because when you look around, there isn't anybody that comes to mind who dominates the market," Cherbak said. "Autobacs is a retail organization that can get a handle on that sector, so they could make a difference."
Frost & Sullivan's Analysis Of The European In-Car Infotainment Market - Infotainment Revolution In Top Gear.
27 August 2003
12:02
Business Wire Regulatory Disclosure
The automotive industry is bracing itself for an onslaught of major car manufacturers offering integrated infotainment functions, transforming the humble dashboard into the lively hub of next-generation car information, navigation and entertainment systems. The drive towards the infotainment vision has already begun, with automakers such as Audi, BMW and Mercedes-Benz debuting the concept of the sophisticated cockpit-of-the-future by increasingly embedding multimedia functionality in their cars. The iDrive on BMW's 7 Series, for example, fulfills over 700 functions and is a prime example of innovative technology enhancing cabin comfort. Frost & Sullivan, the international market consultancy, believes that the European market for in-car infotainment technologies, currently worth EUR 2.6 billion, continues to evolve as new offerings sustain momentum behind the spectacularly high innovation rate in this space and help propel products and services into the mainstream.
The fully networked car is associated with a certain degree of cost-prohibitiveness and high retail prices continue to hamper take-up of infotainment systems. Still, benefiting from the emerging crop of new technologies and services, the key to continued stellar growth, the infotainment industry is expected to fetch revenues worth EUR 9.2 billion in 2010. Frost & Sullivan attributes the lion's share of 66.2 per cent of total European in-car infotainment revenues in 2003 to the original equipment (OE) market. Meanwhile, the aftermarket is expected to suffer a marginal decline over the forecast period as the OE sector continues to fortify its dominance. The migration from analogue to digital technology paves the way for new infotainment features, further aiding market expansion. Frost & Sullivan expects the digital versatile disc to replace mini disc and compact disc technologies in the long term. The simplicity of use, superior image quality and extra features provided by DVDs, as well as the advantages associated with the universally applicable standard, appeal to consumers. Perceived as a unique revenue-generating differentiator, players in the in-car infotainment market will witness dramatic take-up of infotainment technology and maintain high profit margins as increasingly discerning customers express willingness to pay a premium for higher quality of sound and information services. Against a backdrop of ever-growing traffic density and motorists' desire for incident-free driving, Frost & Sullivan argues that demand for advanced route guidance features will rise steadily, eventually giving rise to greater ubiquity of off-board navigation. This technology uses cartographic data via UMTS for destination finding and is poised to significantly alter the landscape of the European navigation market. "Due to the high systems prices, upper segment vehicles have traditionally been the main bastion of navigation systems. In 2002, the market for navigation systems represented 2.8 million units, equating to EUR 1.3 billion. However, the introduction of new systems targeted at the lower end of the market will stimulate a quadruplication of navigation system shipments by 2010," reports Christian Mueller, Industry Analyst at Frost & Sullivan. In 2002, the total European multimedia player market, comprising compact discs, mini discs, digital versatile discs and hard disc drives, saw shipments of close to 13 million units, translating into revenues worth over EUR 850 million. The rising popularity of DVD and HDD drive technologies is responsible for the low compound annual growth rate (CAGR) projected for both units and revenues in the overall market sector. "Vehicle manufacturers are likely to promote DVD systems due to their higher degree of functionality in data storage and capability to play back more than navigation content. The latter function could form the basis for a full systems integration as favored by premium vehicle manufacturers," Mr. Mueller explains. Frost & Sullivan is cautiously optimistic about initial take-up rates in the market for satellite radio systems. Products are expected to start shipping in 2006 and companies active in this sector will realize more potential for S-DAB in commercial vehicles than in passenger cars. By 2010, Frost & Sullivan forecasts satellite radio to account for 1.8 per cent of the total European in-car infotainment market. High unit costs and insufficient market coverage are inhibiting growth in the embryonic T-DAB market. However, the introduction of new vehicle models in 2005 will inject new vigor into this sector, propelling sales to just over EUR 108.8 million in 2006. Frost & Sullivan predicts year-on-year growth rates for T-DAB to peak in 2005 as most vehicle manufacturers are expected to have introduced T-DAB into their respective product ranges. The European in-car infotainment market is comprised of a multitude of companies ranging from large systems integrators such as Siemens VDO Automotive to small suppliers of specialized equipment to the audiophile. The OE market for infotainment systems consists of ten companies and evolves around systems integration. Upper segment vehicle manufacturers turn towards single, unique shape interfaces for controlling the vehicle's functions and integrate value-add infotainment features with, for example, heating, ventilation and air conditioning (HVAC) controls. Becker, for instance, has expanded upon its navigation expertise to offer fully integrated solutions such as the Mercedes-Benz COMAND system. Becker currently enjoys a 40 per cent share of the German market for navigation systems. The aftermarket is more fragmented that the OE market with a host of suppliers battling over their share of the market. Sony currently accounts for the largest slice of the European in-care infotainment aftermarket pie, valued at 17 per cent. Frost & Sullivan recommends that a modular system's architecture, as introduced by Alpine, is a very flexible way of reacting to changing market and technology conditions and should subsequently be adopted by other suppliers. Modularity is believed to provide a strategic advantage as plug-and-play operation would allow technologies to be added at a later stage. Mr. Mueller concludes: "We advise suppliers to focus on their respective areas of expertise and to either carve a niche in the market or to engage in collaboration. The agreement between Sony Corporation and Visteon to bring consumer electronics into the automotive OE environment represents a first step towards market consolidation in the European in-car infotainment market. Frost & Sullivan believes that consumer electronics suppliers should build upon the market expertise of traditional automotive suppliers and vice versa." Companies under discussion in Frost & Sullivan's new study include Aiwa, Alpine, Blaupunkt (Bosch), Clarion, Delphi Automotive Systems, Delco Electronics, Eclipse (Fujitsu Ten), Grundig Car Intermedia System GmbH, Harmann-Kardon - Becker, JVC, Kenwood, Matsushita - Technics/Panasonic, Pioneer, Siemens VDO Automotive, Sony, Visteon, BMW, Daimler Chrysler, Fiat, Alfa Romeo, Ford, Aston Martin, Jaguar, Land Rover, Volvo, Opel, Saab, Porsche, Peugeot, Citroen, Renault, Audi, Seat, Skoda and Volkswagen. Technologies under review include rear-seat entertainment, navigation, T-DAB, S-DAB, CD, MD, DVD, HDD, MP3, TV and screens.
United CEO urges airlines to improve passenger entertainment
By HELEN JUNG
AP Business Writer
9 September 2003
19:03
Associated Press Newswires
SEATTLE (AP) - Airlines need to look beyond cost-cutting and consider the features and entertainment services they should add to make flying fun for passengers, United Airlines chief executive Glenn Tilton said.
"The business will not always be about financial restructuring," said Tilton, who took over a year ago as chief executive of United and is steering the airline through a Chapter 11 bankruptcy reorganization. "It's still about the customer, and it will always be about the customer."
Tilton made his remarks at the annual conference of the World Airline Entertainment Association in Seattle on Tuesday. The group includes companies that provide movies, music, games, Internet connections and other entertainment for airline passengers.
But entertainment and technology companies need to do their part to help airlines keep their finances in order, he said. Rather than forcing airlines to shoulder the costs of buying and installing entertainment systems, entertainment vendors should help find "creative new ways of working together" with airlines to share the costs - as well as revenue from passengers.
For example, he cited United's partnership with Verizon, in which the airline offers on-board e-mail services to travelers for a fee. The service, using Seattle-based Tenzing Communications' technology, runs over existing Verizon Airfone handsets already installed on the plane. United, Verizon and Tenzing all share in the prices charged to passengers to use the service.
It's scaled-down and less expensive than what United had been considering. United, American Airlines and Delta Air Lines all had committed in 2001 to buying high-speed Internet service from Connexion by Boeing, a unit of Chicago-based Boeing Co. But after the terrorist attacks of Sept. 11, 2001, the three airlines retreated to focus on fighting for their financial survival.
But Connexion by Boeing is making its own inroads. The company announced Tuesday that Japanese airline All Nippon Airways has signed a letter of intent to install the service on some of its airplanes. It is Connexion's fifth airline to install the network.
And Alaska Airlines announced a different approach. Rather than install a network on its airplanes, the Seattle-based carrier will start offering passengers on some longer flights portable devices that play movies and music and provide information. The devices, made by APS Inc., a Tacoma-based business started by an Alaska Airlines employee, will be free for first-class passengers and available for rental by others.
Imagine all the wired IFE vendors trying to push their wares hearing that a digEplayer doesn't require miles of wiring and add thousands of pounds in extra weight to each plane.
You could have a lot of fun with the Cost Benefit Analysis per plane
Nice Pics from Assoc Press
First Carrier to Offer APS digEplayer Portable Video on Demand Entertainment System Business Editors & Travel Writers
675 words
9 September 2003
Associated Press Newswires
English
NOTE TO MEDIA: Multimedia assets available
A photo is available at URL:
http://www.businesswire.com/cgi-bin/photo.cgi?pw.090903/bb4
SEATTLE--(BUSINESS WIRE)--Sept. 9, 2003--Alaska Airlines announced today that it will be the first airline in the world to offer customers the APS digEplayer(TM), which uses portable, video-on-demand technology to deliver a spectrum of inflight entertainment choices -- including first-run movies -- in a convenient handheld device.
The announcement was made prior to the World Entertainment Association's 24th Annual Conference & Exhibition, which begins this morning at the Washington State Convention & Trade Center.
"Offering our customers the latest high-technology inflight entertainment system in the industry is in keeping with our commitment to offer technology that makes flying more satisfying to our customers," said Gregg Saretsky, Alaska's executive vice president of marketing and planning. "We're proud to be the first airline to debut this impressive new system."
Unlike traditional inflight entertainment systems, the state-of-the-art digEplayer(TM) literally puts the choice of what to watch or listen to in the hands of customers in the form of a portable device about the size of a DVD player, but with superior audio and video quality. (High-resolution images of the device are available online for viewing at http://newsroom.alaskaair.com). And because the content cannot be duplicated or replayed once its proprietary battery runs out, it's possible to offer first-run movies not yet available on video in addition to its standard fare of classic films, television shows, children's programming, music and video games.
"For the first time, air travelers will have real inflight entertainment options," said Bill Boyer, CEO of APS, Inc.
Alaska will offer digEplayer(TM) units beginning in October on all transcontinental flights between Seattle and Newark/New York, Boston, Miami, Orlando, Washington National and Washington Dulles, as well as between Anchorage and Chicago. The units will be available at no extra charge to all First Class passengers, and at least 32 units will be available in the main cabin for rental. Units may also be reserved in advance via alaskaair.com. Initially, a total of nine movies, three television shows and 10 hours of music will be offered.
Content on the units will be provided by Twentieth Century Fox and Digital Music Express (DMX).
"This is one of the most exciting new products I have seen in a long time," said Julian Levin, executive vice president of digital exhibition, non-theatrical sales and distribution for Twentieth Century Fox. "People today want choices, and for the first time a portable device can offer multiple viewing opportunities in one small package. We are pleased to be the first entertainment company to be involved."
Digital Music Express (DMX) Inflight Division will provide up to 10 hours of dynamic music content for the digEplayer(TM). "This product will give DMX Music Inflight Division the ability to provide cutting edge digital audio entertainment to Alaska Airline's passengers in-flight," said Beth Almberg, senior director, inflight, for DMX.
Alaska Airlines is the nation's ninth largest carrier and was named 2003 Technology Leader of the Year by Air Transport World magazine. Alaska and its regional partner, Horizon Air, together serve 85 cities in the United States, Canada and Mexico. For reservations go to www.alaskaair.com. For more news and information, visit the Alaska Airlines Newsroom on the Internet at http://newsroom.alaskaair.com.
Note: A photo is available at URL:
http://www.businesswire.com/cgi-bin/photo.cgi?pw.090903/bb4
WSJ --Alaska Air Stays Close to Home For New Entertainment System
By Susan Carey
9 September 2003
The Wall Street Journal
In-flight entertainment systems can make seemingly interminable plane rides more bearable. But the new on-demand audiovisual systems -- which allow passengers to select what they want to watch when they want to watch it -- can be prohibitively expensive to install for many airlines.
Alaska Airlines today is expected to roll out a more-affordable product invented by one of its own employees. The system, called digEplayer, is produced by a start-up company headed by Bill Boyer, a 16-year Alaska baggage handler. His company, APS Inc., will put digEplayers on some transcontinental Alaska flights next month.
Alaska plans to distribute the units free in first class, and make another 30 or so available for rent in coach for $8 to $10 depending on whether they are reserved in advance. Seattle-based Alaska, a unit of Alaska Air Group Inc., doesn't carry any video-screening equipment on its jets. Since the carrier began operating longer flights to the East Coast a few years ago, however, it has made available to some of its first-class customers portable DVD players and movies free of charge.
Dave Palmer, managing director of marketing for the nation's ninth-largest airline, says the portable DVD players are fine but it is difficult for flight attendants and others to keep track of the devices and the movie discs. Alaska considered installing an inflight system carrying DirecTV, popularized on board by JetBlue Airways. But satellite TV doesn't work over the ocean or in foreign airspace, making it ill-suited for Alaska's route network. Retrofitting its planes to carry on-demand video systems would cost $500,000 a plane, not counting $80,000 a year per plane in added fuel expense because of the weight, Mr. Palmer says.
Enter Mr. Boyer, an inveterate tinkerer who already had invented a safety device for luggage belt loaders that Alaska uses to minimize accidents on the tarmac. Mr. Boyer, 38 years old, had an idea for a portable device with an internal battery that could be securely preprogrammed with movies, music and games. After he got some encouragement from Mr. Palmer, Mr. Boyer started calling on movie studios with his plan for the $1,000 digEplayer, which encrypts digital images in such a way that a hacker would have a hard time copying the films. It can hold as many as 30.
The gizmo has safeguards against theft. The player has a proprietary battery with a seven-hour life; without a replacement, the device is worthless. The machine also requires a swipe of the user's credit card. If the passenger makes off with the player, he or she would be billed for the cost of the machine.
News Corp.'s Twentieth Century Fox has agreed to provide first-run flicks, classic movies and TV programming to APS, based in Tacoma, Wash. Mr. Boyer, who is on leave from the airline, says he is working on signing up other studios and already has lined up a provider of audio programming.
Flight International article on WAEA..
The World Airline Entertainment Association meets next week in Seattle, with its goal of standardisingthird-generation in-flight entertainment systems in sight.
2 September 2003
Flight International
Emma Kelly / Perth
Airframe manufacturers breathed a sigh of relief in June when the latest steps were taken on the path to achieving standardisation for in-flight entertainment (IFE) systems. After nearly two years of work, the IFE industry body, the World Airline Entertainment Association (WAEA), which holds its annual show in Seattle from 9-12 September, completed the requirements and guidelines for third-generation cabin networks and handed them over to Arinc to complete the standards.
The work started after years of problems encountered by airframe manufacturers with new interactive IFE systems. "The airframers and the airlines were really getting affected by the instability of these systems and their continual changes. It was affecting not only the aircraft deliveries, but also the ability of airlines to upgrade and retrofit systems," says Boeing's Sudhakar Shetty, who has spearheaded the WAEA's third-generation standards work.
The intention was to standardise the areas affecting airframers and airlines, while simultaneously giving the IFE system suppliers the ability to be competitive. "We wanted to lead with some sort of industry standard that all IFE suppliers could follow in the development of their third-generation cabin IFE systems," says Shetty.
The third-generation system standards are designed to support products being developed for the Airbus A380 and the Boeing 7E7, which are expected to come on line by 2006. Shetty adds: "Typically in the past the systems were developed first by various suppliers in different ways, and then we tried to standardise them. In that case we ended up putting all those systems in a document and called it a standard."
For the third-generation systems, the industry had three objectives - to lead the suppliers with a single standard; to make the cabin network plug-and-play, which would allow the airlines to easily upgrade with new systems; and to leverage some of the recent technological advances to help improve airline revenue.
The standardisation process has some way to go, with preliminary standards expected to be agreed by the third quarter of 2004 and the final "grey cover" to be ready by the first quarter of 2005, says Shetty.
WAEA members have agreed the backbone topology and wiring infrastructure, but details of the form and fit of individual line replaceable units to make them plug and play have to be worked out, says Shetty.
Significant changes
The details agreed upon bring significant changes from earlier networks, he says. Third-generation systems will comprise an all-digital distribution system, with no dedicated video control centre (VCC) in the cabin, which will allow airlines to use the space previously taken up by the VCC for more revenue-generating applications. In addition, "seat boxes will be standardised to a smaller footprint, in a way that they will not encroach as much into the passenger space", he says, adding that this should improve seat comfort for passengers. Furthermore, the backbone wiring from the head-end will be fibre-optic cable, which is expected to provide unlimited bandwidth for growth at the same time as significantly reducing weight and electro-magnetic interference issues. Third-generation systems will also be consistent withe-enabled architecture, allowing the IFE to talk to systems such as satellite communications and gatelink in a seamless manner, says Shetty.
"Most important of all it will be a single standard that can support plug-and-play of multiple IFE systems. That means airlines can switch between suppliers without affecting any of the infrastructure," he adds.
Shetty says Boeing is "reasonably happy" with what has been achieved. "We have so far met the intent of what we were trying to do. Some of the details are not to the extent that we wanted, but that is how the standards process works. No-one gets everything they want, but it helps everyone in the long run."
The standardisation work comes as the manufacturers are working on third-generation systems for new platforms, such as the A380. Rockwell Collins is using its ETES (Enhanced Total Entertainment System) as the backbone for its system for the A380. "A couple of years ago when we set out on ETES we knew enough about the A380 that we could develop this platform for it," says Dave Frankenbach, director of cabin systems marketing. ETES, which was introduced into service by launch customer Qantas earlier this year, is in service on four of the carrier's widebodies.
ETES is the successor to Rockwell's TES, incorporating elements of the P@ssport IFE system, formerly developed by Sony Trans Com and which was purchased by Rockwell in 2000. The system incorporates modem technology from the cable television industry and Microsoft's Windows operating system, providing increased bandwidth and the ability to support countless applications. ETES provides laptop connectivity via an ethernet port at every seat and can support audio-and video-on-demand (A/VOD) throughout an aircraft, in addition to games, information services and shopping. Rockwell has orders and options for ETES for 150 aircraft, with unannounced orders believed to be from Air France and Lufthansa, in addition to Qantas.
The ETES system could support full A/VOD to up to 1,000 seats, says Frankenbach. Although the general architecture for Rockwell's IFE system for the A380 will be that of ETES, the system will incorporate some changes, including new file servers and seat boxes.
Weight reduction is a focus of attention for the new system, with Airbus and the airlines pushing for reductions in the bulk and size of IFE systems. "Airbus is focusing on weight reduction and we have some ideas on how to accomplish this," says Frankenbach. In particular this involves focusing on the area of seat integration, making the seat boxes smaller. "We are looking at conceptual designs to reduce seat box sizes and we have had good discussions with seat vendors on this issue," he says, adding that Rockwell believes size reduction of 30-40% is possible. ETES itself is smaller than its predecessor TES.
The capacity that Rockwell has built into ETES means that it does not see the need for fibre-optic cabling for its system. "It's clear that new wiring standards will be available with fibre-optics, but we have more than enough network capacity," says Frankenbach, adding that if the third-generation cabin standards process results in a requirement for fibre-optics, it can be accommodated in the ETES network.
Meanwhile, Rockwell is continuing to look at wireless developments, in particular to support connectivity, although Airbus has not set any wireless system requirements for the A380, says Frankenbach.
The ETES platform is expected to see Rockwell through to the end of the decade, says Frankenbach. "Our focus is on enhancing ETES, addressing A380 changes and applying new technology within the ETES environment," he adds.
Next generation
Matsushita has been working on its proposed next-generation hardware, dubbed Project Kayak, for over a year. Project Kayak continues to gather momentum and is targeted for availability coinciding with the entry into service of the A380 in the first quarter of 2006, says Paul Margis, senior vice-president and chief technology officer. The manufacturer plans to start testing prototype systems this year.
Although Matsushita is tight-lipped on details of Project Kayak, it will incorporate technology from the manufacturer's interactive IFE systems, such as System 3000 and the latest version System 3000i and the EFX product range for narrowbody aircraft. System 3000i, which was recently launched into service by EVA Air, was a development of System 3000, incorporating plug-and-play connectivity through the addition of an ethernet jack and improved performance. Project Kayak will provide all the functionality of its predecessors, but promises the breakthrough in size and weight reductions that airlines and airframe manufacturers have long demanded.
"We plan for Kayak to be the fastest IFE system with the best media library platform - double today's content and coverage - along with advanced passenger interfaces and an unprecedented features list - all in the smallest package ever," says Margis. "At the same time, we plan to link with System 3000 and EFX to ensure that customer investment is maximised," he adds.
Seat boxes will be "significantly" smaller and lighter and will use "significantly" less power, he says, declining to provide specifics, although earlier estimates had pointed to 25-30% reductions are System 3000/3000i. "Integration of functions in head-end units as well as integration and distribution of functions in the seat box facilitate these reductions," says Margis. He adds: "By optimising the allocation of functionality throughout the seat environment and maximising the efficiency of the power supply subsystems, we have achieved significant gains."
Automobile systems
The manufacturer is using media-oriented systems transport (MOST) technology, which was pioneered by the automotive industry and used by Matsushita's parent company in its Panasonic consumer brand car entertainment systems. Matsushita is also exploring other technologies to provide benefits, says Margis, declining to elaborate.
The project designs support the mounting of seat boxes in multiple locations, other than under the seat, although production aircraft still require seat integration. "We are placing a strong emphasis on integration into the seat, with the smallest possible boxes to maximise mounting flexibility. We are leveraging technologies developed for our eFX product with similar-sized boxes," says Margis.
Matsushita will also extend the use of fibre-optics in the new system. The System 3000 already uses fibre-optics for head-end servers and Kayak will extend this to the cabin areas, he says. Further innovations are planned. "We have several new display technologies and wireless products in the research and development stage."
Matsushita is looking beyond Project Kayak by studying new technologies coming down the line from the consumer markets. "We are leveraging our Panasonic research labs for the latest technologies in consumer electronics and mobile information technologies, but we aren't really ready to let the competition know what's being planned," says Margis.
While the hardware manufacturers develop new systems, standardisation efforts in the industry are spreading, with a recently launched effort by the WAEA involving the standardisation of digital content management (DCM).
The association set up a working group two months ago with the objective of "developing a cost-effective and non-proprietary, secure digital IFE infrastructure allowing for a single metadata methodology of existing encoding methods with secure content preparation and delivery for playback, creating an environment fostering competition and encouraging participation".
In other words, the association wants one programming format to replace the numerous formats that film and video programme suppliers are forced to supply today due to IFE systems having different interfaces and delivery processes.
Standard interfaces
The introduction of standard interfaces, encryption and playback requirements is expected to result in a "very significant" cost reduction on a per movie and annual basis, says Julian Levin, executive vice-president at Twentieth Century Fox, who is leading the DCM working group.
"The [IFE system] manufacturers - Matsushita, Rockwell and Thales - took the lead in establishing relationships with airlines and assumed they'd get their [video] content supplied to their format, so distributors have been held hostage," says Levin.
The theatrical and home entertainment industries have managed to come up with a single standard, but the in-flight sector requires films in about 20 different formats, says Levin. "If we don't try to do something about it, it will spiral out of control," he says.
The IFE industry agrees that digital transmission is the future and that it can create a single, non-proprietary architecture, says Levin, but he concedes that it will take years to get there. The group is trying to establish a single standard to cover the preparation of material for in-flight use through to its transport and delivery, loading, management, encryption and playback.
The hardware manufacturers are participating in and supporting the standardisation efforts, recognising the economic benefits. "It will also give us more security and might allow airlines to get access to programming they couldn't get before," says Frankenbach. Matsushita's Margis says that it has always been an active supporter of standardisation initiatives, adding: "We'll continue building on that history of support."
Which of these 58 Airline Attendees is EDIG's Partner??
(as of 19 August) 2003 WAEA Conference
We know it's a leading US Airline, reducing the list significantly.
Aeroflot Russian Airlines
AeroMexico
Air Canada
Air China
Air France
Air Mauritus
Air New Zealand
Air Seyschelles
Air Transat
AIRCALIN
Alaska Airlines
Alitalia
All Nippon Airways Co., Ltd.
America West Airlines
American Airlines
American Trans Air
Asiana Airlines
Austrian Airlines
BELAIR Airlines
British Airways
Cathay Pacific Airways Ltd.
China Airlines
Continental Airlines
Copa Airlines
Delta Air Lines
El Al Israel Airlines
Emirates
EVA Airways Corporation
Finnair
Frontier Airlines
Gulf Air
Hawaiian Airlines
Icelandair
Japan Air Lines
JetBlue Airways, Ltd.
KLM Royal Dutch Airlines
Korean Air
Kuwait Airways
Lan Chile Airlines
LTU International Airways
Lufthansa German Airlines
Malaysia Airlines
Malev Hungarian Airlines
Northwest Airlines, Inc.
Philippine Airlines
Qantas Airways Ltd.
Royal Jordanian Airlines
Scandinavian Airlines System
Singapore Airlines Ltd.
South African Airways
SriLankan Airlines
Swiss International Air Lines
Tap Air Portugal
Thai International Aiways
Transaero Russian Airlines
United Airlines
US Airways
Vietnam Airlines
Virgin Atlantic Airways
20th Century at WAEA..Digital Content Tomorrow
From the session agenda, educational sessions
With key "digital content" standards coming this year at the consumer level, the IFE industry must prepare now if we are to successfully include these standards in products that reach the IFE market in the next 3 to 5 years. In this session, we'll examine the future of IFE systems, identify the applicable technologies, and learn what technical and performance issues must be addressed within new industry standards (including content integration and the migration to network delivery).
Moderator: Michael Childers (IMDC)
Speakers: David Frankenbach (Rockwell Collins); Julian Levin (Twentieth Century Fox Film Corp.); John Nelson (Cinea, Inc.)
APS exhibiting at World Airline Conf. 9/9
http://www.waea.org/events/conference/2003/exhibitlist.htm
Here's that Disney article...
Disney World creates wireless magic
By Ben Charny
Staff Writer
January 7, 2002, 4:00 PM PT
Disney World is using wireless technology to provide captioning and translation services so more people can feel a part of what is, after all, a small world.
Entertainment giant Walt Disney said Monday that hearing-impaired visitors can use specially provided Compaq iPaqs to read text versions of, for example, the conversation between Winnie the Pooh and Tigger during the "Many Adventures of Winnie the Pooh" ride in its Magic Kingdom.
The device is automatically triggered so whoever is carrying it can wander from room to room and ride to ride without adjusting the iPaq, Disney spokesman David Brady said.
"Before, captioning for the deaf was fixed, like captions projected onto a Plexiglas screen on a seat in front of you," Brady said.
Disney is using the same wireless network and type of technology to also provide French, German, Japanese, Portuguese and Spanish translations of about 20 rides and attractions. The translations are heard through a headset attached to the device.
Actors play out the roles in vocal characterizations true to original English translations, Brady said.
The captioning and language translations are available in the Disney theme parks in Lake Buena Vista, Fla. They are free, but may require a refundable deposit. Disney said it intends to soon offer the same programs at its Orange County, Calif., theme park.
Cass, fortunately your wrong. This article is from 1/21/02 and is the 1st generation headset I reported earlier this week that Disney produced with Compaq, prior to the HP merger. It was tied to an iPaq device which is similar to what is pictured here.
Nice try.
Possible 2nd generation headset. Of course HP and Compaq merged later that year.
Disney World creates wireless magic
By Ben Charny
Staff Writer
January 7, 2002, 4:00 PM PT
Disney World is using wireless technology to provide captioning and translation services so more people can feel a part of what is, after all, a small world.
Entertainment giant Walt Disney said Monday that hearing-impaired visitors can use specially provided Compaq iPaqs to read text versions of, for example, the conversation between Winnie the Pooh and Tigger during the "Many Adventures of Winnie the Pooh" ride in its Magic Kingdom.
The device is automatically triggered so whoever is carrying it can wander from room to room and ride to ride without adjusting the iPaq, Disney spokesman David Brady said.
"Before, captioning for the deaf was fixed, like captions projected onto a Plexiglas screen on a seat in front of you," Brady said.
Disney is using the same wireless network and type of technology to also provide French, German, Japanese, Portuguese and Spanish translations of about 20 rides and attractions. The translations are heard through a headset attached to the device.
Actors play out the roles in vocal characterizations true to original English translations, Brady said.
The captioning and language translations are available in the Disney theme parks in Lake Buena Vista, Fla. They are free, but may require a refundable deposit. Disney said it intends to soon offer the same programs at its Orange County, Calif., theme park.
Walt Disney World® Resort Accommodates Clients Without English Fluency
Walt Disney World® Resort is expanding the availability of personal translation units for guests with limited English fluency.
The newly designed Ears to the World Disney’s Show Translator will be introduced in all four Walt Disney World® theme parks on July 14. Guests will be able to use these new light-weight, integrated, digital headset devices in more than 30 attractions across the four theme parks. This complimentary Guest amenity translates key narrative attractions into French, German, Japanese, Portuguese and Spanish.
Credibility - Featured in Parade Mag, Now Shipping and Positive Reviews.