News Corporation and Rockwell Collins Form Joint Venture to Revolutionize In-Flight Entertainment

Strategic Insights -

News Corporation and Rockwell Collins have formed a joint venture, the In Flight Network, which will provide live television, recorded video, audio, Internet, and e-mail services to airline passengers worldwide. The company plans to launch a phased deployment late next year, offering live coverage of news, sports, and entertainment events, in addition to recorded audio/video programming and broadband Internet access. This will be the first global in-flight entertainment network to provide such services, changing the inflight entertainment landscape.

Key Takeaways:

  • The In Flight Network will offer live television, recorded video, audio, Internet, and e-mail services to airline passengers worldwide, with a phased deployment starting late next year.
  • The network will feature multiple video channels with programming tailored to flight length and destination, as well as airline-specific, co-branded programming options.
  • The advertiser-supported business model will enable global and national advertisers, as well as local and regional advertisers, to deliver full-motion broadcast video spots to aircraft in flight worldwide.
  • The In Flight Network's onboard equipment will allow advertising content to be accepted and inserted on a near real-time basis.
  • The network plans to provide Internet and e-mail capabilities, allowing passengers to access their personal devices through a wireless network on the aircraft.
  • The joint venture will be led by James Murdoch, Executive Vice President of News Corporation, and Jeff Wales, Senior Vice President of News Corporation, who will serve as CEO of IFN.
  • The partnership will leverage the expertise of both companies, including Rockwell Collins' systems integration expertise and News Corporation's satellite communications and broadcasting expertise.
  • The In Flight Network aims to create a competitive advantage for airlines by providing a unique inflight entertainment offering.

Statistics:

  • The In Flight Network's global, satellite-based, broadband digital communications network will support multiple video channels.
  • The network will provide live broadcasting of news, sports, and entertainment events, with a planned phased deployment starting late next year.
  • The In Flight Network will have an estimated workforce of 14,000 employees worldwide, with Rockwell Collins contributing its expertise in communication and aviation electronics.
  • The partnership between News Corporation and Rockwell Collins will create a substantial business opportunity, with estimated annual revenues of approximately $7 billion.

Sources:

  • News Corporation (NYSE:NWS, NWS.A)
  • Rockwell Collins (NYSE:ROK)
  • Business Wire, "News Corporation and Rockwell Collins Form Joint Venture to Revolutionize In-Flight Entertainment"
  • News Corporation, "About Us" page