Battle of the seat back has airlines scrambling
Budget carriers try to win passengers with video, audio offerings
By Louis Aguilar
Denver Post Business Writer
Article Published: Wednesday, January 21, 2004
Special / JetBlue
JetBlue planes with video screens kicked off the in-flight entertainment battle in 2000; it plans to expand to 100 channels. Denver-based Frontier Airlines also offers seat-back video monitors, and United’s Ted plans to offer customers audio and viewing choices as well.
After years of fighting for customers on price, discount airlines have discovered a new battleground: in-flight entertainment.
"The seat-back video monitor is now as important as the meal once was," said Henry Harteveldt, vice president of Forrester Research, a technology consulting company.
About 25 percent of leisure travelers and 32 percent of business travelers say in-flight entertainment, particularly audio and video choices, is important to them and influences which airline they will fly, according to Forrester.
Among the new in-flight options from airlines flying out of Denver International Airport:
JetBlue will soon expand its current lineup to offer 100 music, movie, sports and other TV channels through its seat-back video screens.
United's Ted, which begins flying from Denver on Feb. 12, will offer an array of TV programming and music choices, and may possibly offer passengers a handheld video device to rent for the flight.
Denver-based Frontier Airlines, which offers 24 video channels for $5 from DirecTV on many flights, is considering ways to show first-run movies.
Delta's Song, which doesn't fly to Denver, is working on a video game that lets passengers play against one another without leaving their seats.
David Barrett, a Denver-based manager for a copier company, said he tries to fly Frontier Airlines as often as he can because of its TV offerings, including the A&E and ESPN cable channels.
"You can get competitive prices from a lot of airlines. But I just get tired of watching the same movie on other flights," Barrett said.
David Neeleman, JetBlue chief executive officer, recently described new in-flight entertainment options as "a kind of a revolution."
"The industry was kind of stuck in the '70s, in terms of in-flight offerings, for a long time," he said in a recent interview with The Denver Post. "We live in a day and age where we are used to being stimulated on the ground. There is no reason we can't have that while flying."
JetBlue helped start the in-flight entertainment war in 2000 when the airline installed seat-back video screens. That same year, JetBlue also purchased LiveTV for $41 million in cash. It offers up to 24 channels of DirecTV programming.
Frontier offers the same service for a price.
JetBlue upped the ante this month when it announced that it will soon offer XM satellite radio, Fox TV programs and a library of 20th Century Fox movies to its passengers.
Discount airlines have an advantage because they are typically ordering new planes with seat-back video technology installed.
It would take major carriers such as American Airlines and Continental many millions of dollars to retrofit older planes with such devices, analysts said.
"You try to look out two, three to five years from now. And my assumption is that every airline is going to have something like this," said Frontier CEO Jeff Potter.
Ted, United's discount airline, does not have seat-back video because it is using United's older fleet to launch its airline service. Ted, however, is branding its in-flight entertainment as Tedevision and Ted's Tunes.
The race to offer new entertainment options may also be a way to distract passengers from new in-flight safety regulations that restrict movement.
"It used to be you could get up and stretch your legs; now airlines tell you they don't really want you to leave your seat," Harteveldt said. "That means a traveler's personal space is much more important."
LOW-COST LURES
Offering in-flight entertainment is a new battleground for low-cost carriers. A look at offerings by some carriers that serve Denver International Airport.
JetBlue
Soon to offer XM satellite radio
Also will offer Fox TV programs and movies
Currently offers 24 channels of DirecTV programming
United's Ted (Feb. 12 launch)
Tedevision - a mix of music videos, stand-up comedy, sitcoms on overhead video monitors every few rows
Ted's Tunes - 15 music channels
May offer a handheld video device that travelers can rent
Frontier Airlines
Seat-back video monitors (on most planes)
24 channels of DirecTV programming at cost of $5
May offer first-run movies
