The aerospace company, which will move to Irvine late this year, makes seatback entertainment and information systems for air passengers and calls itself the largest in that business branch.
Joe Bentley, the company’s chief technology officer, calculates that air passengers spent 1.4 trillion “engagement minutes” per year pre-COVID, when they could be entertained, informed and interested in various products.
“It’s a lot of opportunity to monetize,” Bentley told the Business Journal on May 7, noting that 1.64 million people were screened at U.S. airports on a single day earlier this month, the highest since the start of the pandemic, and that more planes are coming out of storage.
That presents plenty of opportunity to sell ad space—called “inventory” in the business.
“If you have a passenger that is captive for two to five hours, it’s a fantastic opportunity to sell that inventory,” he said, adding that content delivery has changed at home and needs to change in the air as well.
Digital, Live Sports
Bentley last month set out a digital transformation strategy on the company’s blog. Here are some of the points he makes:
– “It’s time now for a new kind of transformation, one that sees us replacing old digital systems with the next generations of technology.”
– People “expect immersive, personalized experiences from the content they consume and this is something that will spill over into our industry.”
– “Engaging passengers who expect these new experiences all comes down to the content you put in front of them. We’ve already seen how live sports can increase engagement: 70% of passengers with access to the Panasonic Avionics Sports 24 service during a flight watched the Super Bowl and 80% watched the FIFA World Cup.”
– “New types of content are important, but passengers have come to expect a personalized offering that spans different platforms and even screens since this is how they consume content at home.”
– The shift “opens up a number of opportunities for new ways to drive revenue—including retail, targeted advertising, and up-sells” (additional or more costly purchases).
Bentley cites as an example Mexico’s Aeroméxico, which uses a revamped mobile app and multilingual Facebook Messenger bot to give passengers flight information and to answer their questions. Passenger use provides important data on travel habits, frequently asked questions, and the needs of the individual.
New Games
Panasonic Avionics is also bringing out some new games and new video capability, while in-flight shopping is also a “form of entertainment,” according to the Panasonic Avionics CTO.
“There’s a lot of interest right now in improving connectivity on board,” Bentley said, referring to the inter-connection among various computer systems and networks. “We have a sports service and a news service that really creates a compelling and engaging experience.”
Other main points Panasonic Avionics is working on include streaming, videos, live TV and enhancements to its popular Arc in-flight map showing the plane’s route, with advertising also a key component.
He says an “uptick” in retrofits for the revamped systems, though he cautioned they can take time.
The advertising “is a very important revenue stream for our airline partners,” says Bentley, adding: “We do a revenue split with ad partners.”
