Airline broadband expected to generate US$30b in revenue
A Monitor Report
01 Oct, 2017  |
: Airlines will generate an additional US$30 billion worth in incremental revenue from broadband-enabled e-commerce, advertising and premium content by 2035, according to a new report from the London School of Economics (LSE) and Inmarsat, the world's leading provider of global, mobile satellite communications.
This bold prediction says that inflight broadband has the potential to create a US$130 billion global market within the next 20 years according to a new research study entitled, "Sky High Economics: Quantifying the commercial opportunities of passenger connectivity for the global airline industry."
Both research partners claim that Sky High Economics has developed 'an independent forecasting model" which is based on "current IATA data and industry sources" which can predict that broadband enabled ancillary revenues for airlines will come from four main revenue streams:
The potential revenues that might be generated from always-on, no drop-out satellite provided broadband, as predicted by Inmarsat and the London School of Economics.
These include broadband access charges - providing connectivity to passengers in-flight; E-commerce and destination shopping - making purchases on-board aircraft with expanded product ranges and real-time offers; Advertising - pay-per-click, impressions, sponsorship deals with advertisers; and Premium content - providing live content, on demand video and bundled W-IFEC access.
The two partners add that at present, 'only some 53 out of an estimated 5,000 airlines worldwide offer in-flight broadband connectivity'.
Both partners also believe that this progress is inevitable, "On the back of strong passenger demand, in-flight internet will be ubiquitous on commercial aircraft by 2035.