Making IFE Part of the Content Delivery Ecosystem Michael Childers Chief Consultant, Content & Media Strategy, Lufthansa Systems APEX Board of Directors APEX Technology Committee Chair

Inflight Entertainment (IFE) 2 Source: businessclass.co.uk Nearly half a billion dollars in annual licensing revenue

An association built around the passenger experience, rooted in inflight entertainment

Airline Passenger Experience Association 4 Launched in 1979 as the Airline Entertainment Association, then the World Airline Entertainment Association, and then the Airline Passenger Experience Association (APEX) with entertainment and media at its core.

The Airline World Changing

PaxEx: Connectivity Helps Drive Airline Profitability The Economist cites $10 billion onboard passenger experience upgrades this year for existing aircraft alone – up half a billion from last year from our combined efforts* Half of all airline profits industry-wide are being redirected to enhance passenger experience* Total Global Airline Profitability in Billions of USD SOURCE: IATA 2015 *The Economist, May 2015, September 2015

PaxEx: Connectivity Helps Drive Airline Profitability The launch of High Throughput Satellites (HTS) in both Ku-band and Ka-band is expected to be a game-changer for inflight connectivity and to heavily influence IFE. Total Ka-band HTS supply is forecast to increase threefold to 1,500 Gbps by 2018, while Ku- band will increase by fivefold to reach 285 Gbps in Total Global Airline Profitability in Billions of USD SOURCE: IATA 2015 *The Economist, May 2015, September 2015

Connectivity in Flight Taking Off Sources: Iceland Air, CNN, Skift, SITA OnAir, eDreams, Gogo, Fortune, New York Times

APEX APEX has about 416 global member companies … including 90 major airlines Major aircraft manufacturers All systems providers All six major studios and dozens of content providers Principal post-production providers Connectivity providers Seat manufacturers, etc. Source: APEX Global Survey

APEX Technology Committee The APEX Technology Committee: Identifies the technologies that impact the passenger experience Educates our membership as to the technologies Establishes Working Groups to draft technical specifications Our 0395 Working Group created the first digital content delivery specification in IFE in March We codified MPEG-1 and MPEG-2. In May 1998 we codified a specification for DVD delivery to aircraft. In 2007 we codified MPEG-4 delivery, and upgraded the spec in We deal with government agencies like the DOT and FAA.

APEX Technology Committee IFE Systems: Follow a two-year development, 12to 13-year deployment cycle With component upgrades a system may remain in service for 20 years Major airlines like Emirates and Singapore have some components onboard that were delivered in the 1990s. At any given time, our industry may support three generations of IFES: Analog MPEG-1/2 MPEG-4 Modern digital systems may cost from $1 to $5 million per aircraft Closed captions are currently delivered in bitmap since we deliver more files to MPEG-1/2 today than we do MPEG-4. And we represent our industry with the Department of Transportation and FAA on rulemaking that deals with media, connectivity and the passenger experience.

Making IFE part of the content ecosystem

APEX Specifications