An analysis of IFE, Wi-Fi, Content and Ancillary Revenue trends among passengers. Best viewed in Full Screen mode. To download the report, please visit http://rdpn.me/vzQ7P8

1. 2011 Passenger
Survey Results
An analysis of IFE, Wi-Fi, Content
and Ancillary Revenue trends
among passengers
© 2011 digEcor, Inc.

2. About this report
History and purpose
Last year, we released the 2010 Passenger Survey Results and received a very positive
response. In this report, we have conducted all new research with a broader range of
respondents, more content and more in-depth analysis. Our goal is to provide information
that will aid passenger airlines in making strategic decisions about in- ight entertainment
and connectivity programs.
Who we are
digEcor, Inc. is a worldwide leader in handheld in- ight entertainment. Specializing in
proprietary devices and content management, we work with our clients to elevate their
passengers’ in- ight experience. Our mission is to provide low cost, full service
entertainment that drives revenue to airlines. You can nd us on the web at
www.digEcor.com or call us at 1-801-489-2022.
© 2011 digEcor, Inc.

3. We surveyed
542 passengers
© 2011 digEcor, Inc.

4. 51%
were male
49%
were female
© 2011 digEcor, Inc.

5. Age Percentage
18-25 9%
26-40 30%
41-60 38%
60+ 23%
© 2011 digEcor, Inc.

6. 4% y every week
8% y every month
15% y every 3 months
26% y every 6 months
47% y once per year
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7. 85% y Economy, 9% y Business
and 6% y First class

8. Where respondents currently reside
14%
19%
61%
02%
04%
© 2011 digEcor, Inc.

9. What affects
passengers’
airline choice
© 2011 digEcor, Inc.

10. What in uences you when buying an
airline ticket?
*Based on a scale of 0 to 5 (0 being No In uence and 5 being Very In uenced)
0 1 2 3 4 5
# of Responses
Ticket Price # of Stops IFE System Meal Service Movie & TV In- ight Frequent Flyer
Most Important 2nd Most Type Show Selection Internet Program
Important Least Important Least Important
© 2011 digEcor, Inc.

11. Analysis & take-aways
IFE System Type Movie or TV Show Selection
2010 Comparison: Less important this year 2010 Comparison: A little less important this year
Key Take-away: Downward trend in an IFE system’s Key Take-away: Content selection is less
in uence over airline preference important than IFE system type
In- ight Internet Availability Frequent Flyer Program
2010 Comparison: N/A (didn’t test last year) 2010 Comparison: N/A (didn’t test last year)
Key Take-away: Wi-Fi is not a big factor in selecting Key Take-away: Frequent yer programs have a
an airline wide ranging impact on airline decision
Ticket Price Number of Stops
2010 Comparison: A little less important this year 2010 Comparison: A lot less important (biggest drop)
Key Take-away: Downward trend in ticket price Key Take-away: Passengers are willing to make
sensitivity but still most important more stops than before
Meal Service
2010 Comparison: A little more imporant this year
Key Take-away: More important than content selection
and Internet availability
© 2011 digEcor, Inc.

12. IFE hardware
trends
© 2011 digEcor, Inc.

13. How do you prefer to receive or
view entertainment in- ight?
70% Seat Back System Passenger Owned Device Airline Provided Handheld Overhead System
45% Average 30% Average 11% Average 14% Average
60%
50%
Preference
40%
30%
20%
10%
00%
18 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55 56 - 60 60 +
Age Groups
© 2011 digEcor, Inc.

14. Analysis & take-aways
The Impact of Age
Younger and middle aged generations embrace handheld technology while older
generations prefer embedded systems. As passengers age, the preference for seat back
and overhead systems increases at a near identical rate and the preference for handheld
devices (both passenger owned and airline provided) decreases slightly. Though, the
preference for passenger owned devices decreases more rapidly than the preference for
airline provided handhelds.
Airline Provided Handhelds
Although handhelds rank low, additional surveying shows that 40% of passengers who
have used a portable device, such as the digEplayer, prefer it over other IFE solutions.
Further, case study has shown that uptake rates for handhelds are not negatively affected
by the availability of in- ight Internet. The two services have shown to be complementary.
© 2011 digEcor, Inc.

15. What type of interface do you prefer
for a seat back system?
*The overwhelming preference is for all navigation to occur through a touch screen. However, the desire
for a touch screen interface decreases with older passengers who increasingly prefer to have controls
next to the screen. Though, that preference, as shown below, is still in the minority.
18 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55 56 - 60 60 +
Touch Screen Wired Pop-out Control by Screen
Wired Pop-out Control in Arm Rest Controls by Screen
© 2011 digEcor, Inc.

16. What features are important in an
IFE system?
1 Destination information
2 Daily news, weather, sports or nancial reports Most desired
3 An outlet to power your device features
4 Food and beverage ordering (additional explanation
5 Moving map on the next page)
6 Stream music or movies from personal device
7 Message airline’s customer service team
8 Peer-to-peer game play
9 Peer-to-peer communications (e.g. IM)
10 Parental Controls
*Respondents ranked each feature
© 2011 digEcor, Inc.

17. Determining the break in desirability
of IFE features
A natural break occurred in the data that separated the
rst six options on the IFE feature list from the last four.
The graph to the right shows the grouping broken down
by age. In every age group, the rst six options are
noticeably preferred over the last four options. The only
exception is among passengers over 60 years old where
a slight overlap exists.
Rank
Age
© 2011 digEcor, Inc.

18. In- ight Internet
trends
© 2011 digEcor, Inc.

19. How Wi-Fi affects the ticket buying
decision, broken down by age
Impact on selecting an airline
Earlier in the report, we showed that In- ight
Internet has little impact on choosing an airline.
In fact, the availability of Wi-Fi was the second
lowest factor that we tested.
Impact by age
Impact
The availability of in- ight Internet has the
strongest impact on passengers age 26 to 30,
shown by the green line. Starting with age 31,
the impact of Wi-Fi steadily declines. The rate
at which it declines, shown by the orange line,
is the fastest of all the factors.
Comparison to ticket price
To put this in perspective, the red line in the Age
graph shows the impact of ticket price.
© 2011 digEcor, Inc.

20. Why do you want the Internet?
We surveyed both the willingness to pay for individual services and
the overall desire for each service if it were provided for free.
Pay
Free
Desire to Use
General SMS Instant News Sites Email Web
Browsing Messaging Videos
*Anomaly shows that passengers prefer Email access over News Sites if having to pay but prefer
News Sites over Email access if the Internet is available for free

21. Commentary on Wi-Fi pricing
Most businesses do not An IFE vendor perspective
reimburse for Wi-Fi usage The following comment was left on a LinkedIn forum by
Business Travel News released in May 2010 an employee of a large IFE vendor.
the results of a survey that asked corporate
“
travel managers whether or not they
reimburse for in- ight Internet. If one can step back from the technical, social and
emotional issues concerning ‘Internet’ on airplanes; I
“
submit that the justi cation for installing a Hi-Speed
Of the 230 respondents who guide Broadband System on an airliner is the ful llment of a)
corporate travel policy within their Airline Operational Data Communications and b)
organizations, only 34 percent said it's OK Passenger Convenience.
for travelers to unsheathe their corporate
cards to access Wi-Fi on all ights, though Any ancilliary revenue the airline may get from the use
an additional 7 percent said they would of the system by the passengers for voice, data, etc.,
reimburse wireless Internet access costs, using their smart phones, PDA's, Tablet PC's or Laptops
but only for intercontinental or long-haul is a bonus. It is dif cult to believe that the investment
ights. The remaining 59 percent majority required can be justi ed by the added revenue from
said travelers are on their own when it passenger usage, especially during the early years of
comes to paying onboard Wi-Fi expenses, EIS. This service has to be looked upon as a passenger
regardless of the length of haul.” ‘perk’ and a market differentiator in a highly competitive
market. However, the biggest factor that will in uence
passenger usage, besides availability, is ‘Seamless
Performance,’ at least for the international long haul
carriers.”
© 2011 digEcor, Inc.

22. An analyst’s perspective on Wi-Fi revenues Airlines to offer free Wi-Fi &
Market research rm In-Stat News estimates that revenue begin streaming content
from Wi-Fi will grow from $225 million in 2011 to over $1.5 Delta Air Lines, as of Oct. 4, 2011, is
billion in 2015 in the United States. Amy Cravens, an In-Stat offering free in- ight Wi-Fi with two
Senior Analyst, remarked: objectives: to make money from the
“
services that passengers use once
While airlines initially viewed in- ight broadband as a connected and to encourage the uptake of
competitive differentiator, it is now simply viewed in the U.S. the pay-for-access content.
market as a competitive requirement. The future of in- ight
Wi-Fi will be less about convincing airlines of the merit and Passengers have up to 24 hours after the
more about leveraging the network to provide a broader ight to nish watching any “rented”
breadth of services." content on their own personal devices.
Lufthansa is launching a similar rental
service.
Cravens added that, similar to the hot spot market, Wi-Fi will
most likely become a commodity and the revenue
During Summer 2011, American Airlines
opportunity will reside with the services and features and not
trialed streaming content via the Gogo
the connection.
in- ight Wi-Fi. And competitor Row44 is
launching a new “walled garden” with
pay-for-access content.
© 2011 digEcor, Inc.

23. Content
preferences
© 2011 digEcor, Inc.

24. Based on a given ight length, how
do you spend your time in- ight?
The higher the activity on the chart, the more
time passengers spend on that activity
© 2011 digEcor, Inc.

25. 1 - 2 Hours 2 - 4 Hours 4 - 8 Hours 8+ Hours
Flight Length Flight Length Flight Length Flight Length
Read Read Read Sleep
Listen to Music Listen to Music Sleep Watch Videos
In- ight Magazine Sleep Watch Videos Read
Sleep In- ight Magazine Listen to Music Listen to Music
Watch Videos Watch Videos In- ight Magazine In- ight Magazine
Play Games Play Games Play Games Play Games
Working Working Working Working
Browse Internet Browse Internet Browse Internet Browse Internet
*Browse the Internet: Filtering for only respondents from the United States where Wi-Fi is more
common, Browsing the Internet only moves up one position on 4 - 8 hour ight segments.
© 2011 digEcor, Inc.

26. How interested are you in each
Entertainment category below?
- 3.81 Movies
new 3.64 Internet
- 3.29 Current News Most desired
2 3.25 Television Shows content types
Ranking change from 2010
- 3.23 Music
2 3.21 Live Television
1 2.69 Casual Games (e.g. Mahjong)
3 2.60 Shopping
2 2.54 Audio Books
1 2.41 Music Videos
1 2.20 Independent & Student Films
2 2.11 Book Summaries
- 2.06 Advanced Games (e.g. Halo)
2 1.99 Casino Gaming
*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)
© 2011 digEcor, Inc.

27. Po
pu
lar Satisfaction
© 2011 digEcor, Inc.
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3.85
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How interested are you in each
3.18
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28. What does the previous graph show?
Passengers’ strongest preference is for popular, pre-DVD
release movies.
However, passengers are more happy to watch popular DVD
release movies than less popular pre-DVD release movies. This
result, which was mirrored in the 2010 Passenger Survey
Results, goes against the belief of many airlines that early
window content always trumps classic titles regardless of
popularity.
© 2011 digEcor, Inc.

29. Ancillary
revenue trends
© 2011 digEcor, Inc.

30. How likely are you to look for or
purchase the following product types?
- 2.89 Gifts
3 2.85 Travel
1 2.79 Books
Ranking change from 2010
1 2.78 Electronics
Most desired
3 2.65 Movies, Music & Games
products
- 2.65 Food, Health & Beauty
- 2.55 Apparel, Shoes & Jewelry
- 2.48 Computer & Of ce
- 2.36 Home & Garden
2 2.29 Services
1 2.19 Sports & Outdoors
1 1.98 Toys, Kids & Baby
- 1.93 Tools, Auto & Industrial
*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)
© 2011 digEcor, Inc.

31. If you nd a product you want, how
much are you likely to spend?
2011 Results
2010 Results
# of Respondents
Peak Peak
$0 < $10 < $25 < $50 < $100 < $250 $250 +
*The average price passengers are willing to spend has decreased
© 2011 digEcor, Inc.

32. Which services would you like to
have availabile in- ight?
2.54 Rental Car Reservations
2.52 Hotel Reservations
2.49 Mobile Destination Guide
2.49 Show or Event Tickets
2.28 Theme Park Tickets
1.97 Calling Card
*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)
Rental car opportunity
A report earlier this year estimated that 15% of passengers who intend to rent a car, board the
airplane without an existing rental reservation. The data above echoes a desire to secure a
rental car after boarding.
© 2011 digEcor, Inc.

33. Likelihood to use a credit card in- ight
grouped by country of residence
*A full explanation is on the next page
Australia
35%
England
30%
France
% of Respondents
25%
Australia
20%
15%
10%
Average w/ Outliers
05% Average w/o Outliers Australia
Outliers
00%
Likelihood
© 2011 digEcor, Inc.

34. Overall likelihood to use a credit card in- ight
The average response was 2.5 on a scale of 0 to 5 (0 being Not Willing and 5 being
Extremely Likely). This exact middle of the road average is the result of most
respondents selecting either 1 or 5 (as shown by both the orange and grey lines).
How country of residence affects likelihood
Grouping the data by country yielded some interesting spikes or outliers (green dots).
Most responses, regardless of country, are grouped in similar areas, which is shown by
the smoother orange line with the outliers removed. The grey line shows the skewing
that results from the outliers.
Comments on the outlying countries
Australia was consistently inconsistent. The data shows higher polarization than other
countries. Meaning, the Australian respondents generally were either Extremely Likely
or Not Likely At All to use a credit card without many responses in the middle. This
result may in part be due to a small number of respondents from Australia.
England showed a spike near the Not Likely side and then followed the normal trend.
France likewise showed a spike in the middle (representing some indecisiveness),
though otherwise followed the average.
© 2011 digEcor, Inc.

35. THANK digEcor, Inc.
1-801-489-2022
YOU sales@digEcor.com
VERY www.digEcor.com
@digEcor
MUCH
© 2011 digEcor, Inc.