In-flight Entertainment - Cost Efficiency

Cost Efficiency

The companies involved are in a constant battle to cut costs of production, without cutting the systems quality and compatibility. Cutting production cost consists of anything from altering the housing for personal televisions, to reducing the amount of embedded software in the In-flight entertainment processor. Difficulties with cost are also present with the customers, or airlines, looking to purchase In-flight entertainment systems. Most In-flight entertainment systems are purchased by existing airlines as an upgrade package to an existing fleet of aircraft. This cost can be anywhere from $2 Million-$5 Million for a plane to be equipped with a set of seat back LCD monitors and an embedded IFE system. Some of the IFE systems are being purchased already installed in a new aircraft, such as the Airbus A320, which eliminates the possibility of having upgrade difficulties. Some airlines are passing the cost directly into the customers ticket price, while some are charging a user fee based on an individual customers use. Some are also attempting to get a majority of the cost paid for by advertisements on, around, and in their IFE.

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