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Ted DVDs and Digeplayer

Rocky Mountain News

http://www.rockymountainnews.com/drmn/technology/article/0,1299,DRMN_49_3245015,00.html

Ted to test renting portable DVD players
By David Kesmodel, Rocky Mountain News
October 11, 2004

Ted, United Airlines' budget carrier, thinks it may have found a new formula to keep passengers entertained.

Ted plans this week to begin testing the rental of portable DVD players for $12.



The carrier is teaming with InMotion Pictures, an airport DVD-rental company, to offer fliers the chance to rent the devices for flights between Denver and Orlando, Fla.

Fliers will be able to rent the systems at the gate and return them at one of three places: the gate where they land, an InMotion airport kiosk or a stand-alone drop box at the airport. For the price of the rental, fliers also will get to chose a free movie rental from a selection of current releases, classics and kids' films.

The offering will be Ted's second test of a portable entertainment system. The company previously tested the digEplayer, a device it rented for $10 and distributed during flight.

Ted found passengers didn't get as much viewing time with the digEplayer as the airline would have liked because of the time required to distribute them by flight attendants, who also were busy with food and beverage service.

Other carriers, such as Alaska Airlines, have picked the digEplayer as their portable offering.

Big airlines increasingly are rolling out handheld devices that show movies, music videos, cartoons or sitcoms.

The carriers want to compete better with rivals such as JetBlue Airways and Denver-based Frontier Airlines, which offer live satellite television on each seatback. Renting portable devices requires far less expense for carriers than installing satellite-TV.

'We are really excited about the InMotion opportunity,' said Tim Simonds, director of marketing and planning for Ted. The airline likes the efficiencies of the 'gateroom distribution model.'

InMotion has been renting DVD players at airports about five years. It has locations at DIA and more than 20 other major U.S. airports.

The company's three founders - Michael Freedman, David Kight and Barney Freedman - say on InMotion's Web site they wanted 'an option that could help 'shorten' flight times, rescue parents from bored children and ease the pain of road warriors everywhere.'

'They have a very wide distribution network, and they're growing, so we're very interested in this,' said Sean Donohue, United's vice president for Ted and United Express.

The test price of $12 is the same price InMotion charges at its airport kiosks. Ted will require a $100 deposit, rather than the $250 deposit InMotion requires, Donohue said. Credit and debit cards will be accepted.

Passengers will be able to start watching movies on the InMotion DVD players as soon as the plane reaches cruising altitude. Fliers also could start the movies while waiting at the gate.

The players have two audiojacks, allowing two children to watch the same movie on one player.

If passengers have their own DVD players, they will be able to rent a DVD from Ted for $5.

Donohue indicated Ted is leaning toward picking the InMotion product over other products as a permanent entertainment offering.

'Now, if digEplayer or someone else can come up with the gateroom distribution, we're willing to take a look,' he said.

'But InMotion is the furthest ahead on that.'

Airline-industry consultant Stuart Klaskin said the $12 cost 'seems pricey to me.'

'The problem is you have JetBlue offering live TV for free,' said Klaskin, partner in KKC Aviation Consulting in Miami. (Frontier offers live TV for $5.)

'And compared to live TV,' he said, 'it's a much more limited selection. It's a movie instead of getting to flip through channels. The advantage is it gets them more competitive, and they can test this without retrofitting the airplanes. It's much better than nothing.'

Chicago-based United, which is in bankruptcy, launched Ted in February as part of the carrier's effort to fend off growing competition from discount carriers.

Ted flies to eight leisure destinations from Denver, including New Orleans and Las Vegas.

United is the biggest carrier at Denver International Airport, controlling about 60 percent of the traffic.

Movies with Ted Ted, United's budget carrier, has teamed up with InMotion to test renting DVD players and movies on Denver-Orlando, Fla., flights.

• How it works: Passengers will be able to rent the players at their Ted gate and return them at the gate where they land, an InMotion airport kiosk or a stand- alone drop box at the airport.

• Cost: $12 a day for a 7-inch player and $15 a day for a 9-inch player. That includes one movie. Additional movies can be rented for $4.