DATE:09/02/09
SOURCE:Inflight International Magazine
Can airlines get high dollar from low-stakes gaming?
By Mary Kirby
Airlines have toyed with the idea of offering in-flight gambling for years. But regulatory and technological barriers coupled with financial risks have kept the vast majority of scheduled carriers out of the game.
Even the most aggressive pursuers of ancillary revenue, like Ryanair - which intends to eventually harness OnAir's mobile connectivity service to offer in-flight gambling - thinks the proposition is "probably three, four years away".
While industry stakeholders continue to explore ways to turn aircraft into virtual casinos in the sky, there is a low-stakes gaming answer in the cards for airlines.
Portable in-flight entertainment (IFE) device maker digEcor has teamed up with Los Angeles-based start-up Flight Deck Gaming to offer what they say will be memorable gaming experiences to passengers and fresh ancillary revenue streams for airlines.
Under a new exclusive partnership, Flight Deck Gaming is optimizing a range of casual, skill-based and casino-style games or 'games of chance' for play on digEcor's handheld IFE device known as the digEplayer.
"For us, this has been a partnership and relationship we've been searching for quite a while and [we] finally feel we've found the right team," says Brad Heckel, president of digEcor, which has traditionally offered gaming content on the digEplayer from gaming content provider DTI.
"We are in very specific conversations with probably half a dozen airlines, where Flight Deck Gaming is either already included in the contract or is part of the discussion for the offering, and I might add that the airlines have been very receptive to the concept and to what it is that Flight Deck Gaming can bring in terms of games and ancillary revenue."
According to statistical research from GrabStats, online gaming related revenue is expected to exceed $20 billion by 2012. In-Stat Research says revenue derived from various Wi-Fi enabled devices will surpass $1 billion by 2012. Getting a slice of this pie from airline passengers can be accomplished by capturing pre-flight, in-flight and post-flight revenue, says Flight Deck Gaming managing partner Howard Woods.
In addition to basic subscriptions, there are advertising opportunities - either alongside or actually embedded into the game itself - and sponsorship opportunities, which work particularly well with network and tournament type game play, says Woods. "All of those or any combination is embedded in the model we employ to create total revenue."
Flight Deck Gaming takes the position that airlines should not have to pay for games nor should passengers have to pay outright to play. "When you look at the entire business chain of the gaming industry, charging the passenger to play is an obsolete model," says Woods.
Under the Flight Deck Gaming/digEcor partnership, carriers that want to offer casino-style games, such as poker or virtual roulette, on portable players can do so but at "very little risk" to them, says Heckel, adding: "In essence, you have the same opportunities [as gambling] but it's a completely legal environment."
However, in jurisdictions where full-blown in-flight gambling is permitted, Flight Deck Gaming and digEcor "could make the same game available in a mode" that would facilitate that. "We can make that available, but whether we would do that would be determined by the particular carrier and that environment," says Woods.
The Flight Deck Gaming executive says two factors are coming together at once to make low-stakes in-flight gaming a viable proposition for airline revenue generation right now.
"There has probably never been a higher motivation for ancillary revenue in the airline industry, and, on the other hand, the gaming industry - which has typically been a couple generations ahead and bypassed the airline and transit industries - is sitting down and spending the effort to make the terrestrial gaming model scalable, in an industry that has [previously] taken a fragmented approach. The airline industry has never been hungrier for ancillary revenue."
DATE:08/20/09
SOURCE:Air Transport Intelligence news
digEcor looks to become 'one-stop-shop' for hardware, content
By Mary Kirby
Semi-embedded and fully embedded in-flight entertainment (IFE) solutions are being explored as part of digEcor's move to become a total IFE solutions provider of both robust hardware and relevant content.
The company has made a name for itself in the portable IFE space, capturing an estimated 45% of the global handheld IFE sector. "But if you look at what we have done, we actually believe we offer more content variety than anyone out there," says digEcor President Brad Heckel.
He says digEcor is "trying to move away from being [simply] a hardware provider with some Hollywood studio content" to become "a total entertainment solutions provider". This means becoming "a one-stop-shop as a company and that includes the various content offerings that can be put on an ever-expanding offering of hardware, higher level of support, and also a lower cost".
A few years ago digEcor said it was looking at offering an embedded system, the digEsystem. This particular platform, which was to be designed by Colorado-based consulting firm Triad Systems Engineering (TSE), is no longer under development. But digEcor reveals it is still studying in-seat solutions. "We are still exploring the possibility of an embedded system as market needs and drivers evolve. As per the branding, if we at some time determine to release an embedded solution, the name will then be selected at that time," says a digEcor spokesman.
In tandem with this, and in the face of a global economic recession, digEcor is exploring ways to generate fresh ancillary revenue streams for airlines.
Heckel says two customers of digEcor's portable players have IFE programmes in place that have proven to be net profit generators. But in-flight gaming represents another area that promises ancillary gains for airlines.
Earlier this month digEcor announced an exclusive partnership with Flight Deck Gaming, a Los Angeles-headquartered start-up that has already built a diverse portfolio of gaming applications.
"For us, this has been a partnership and relationship we've been searching for quite a while and finally feel we've found the right team," says Heckel.
"We are in very specific conversations with probably half a dozen airlines, where Flight Deck Gaming is either already included in the contract or is part of the discussion for the offering, and I might add that the airlines have been very receptive to the concept and to what it is that Flight Deck Gaming can bring in terms of games and ancillary revenue."
Flight Deck Gaming managing partner Howard Woods says there are multiple ways to derive revenue from gaming. In addition to basic subscriptions, there are advertising opportunities - either alongside or actually embedded into the game itself - and sponsorship opportunities, which work particularly well with network and tournament type game play.
"All of those or any combination is embedded in the model we employ to create total revenue," says Woods.
DATE: 08/04/09
Flight Deck Gaming to Pilot digEcor's Game Strategy
Transit focused gaming firm lands exclusive partnership with largest handheld In Flight Entertainment company
Los Angeles, CA August 4, 2009 – Today, transit focused gaming provider Flight Deck Gaming Inc. announced that it had secured an exclusive partnership to provide gaming solutions to digEcor, the world’s largest provider of handheld IFE (In Flight Entertainment). According to independent market research firm Frost & Sullivan, digEcor currently controls 45% of the global In-Flight Entertainment handheld sector.
“We explored a number of gaming options and found that Flight Deck Gaming’s airline operations and gaming expertise made them uniquely qualified to support our various initiatives in this arena,” stated digEcor President Brad Heckel.
“digEcor is a recognized leader in the IFE sector and my colleagues at Flight Deck Gaming and I are very excited to be working with digEcor’s team,” said Howard E. Woods, Managing Partner of Flight Deck Gaming.
Through the multi year agreement, Flight Deck Gaming will have the exclusive rights to provide digEcor (and by extension the company’s extensive list of airline partners) with gaming related entertainment solutions.
By 2012, online gaming related revenue is expected to exceed $20 billion according to statistical research firm GrabStats (www.grabstats.com). In addition, according to In-Stat Research, revenue derived from various WiFi enabled devices will surpass $1 billion by 2012. The prospect of tangible new revenue streams, coupled with the “captive audience” nature of most transit passengers, has created an attractive environment through which transit providers hope to exploit the commercial potential of gaming.
“Given the challenging economic environment facing our airline partners, the combination of a new revenue stream and an enhanced in-flight entertainment menu is particularly compelling,” added Heckel.
About Flight Deck Gaming, Inc.
Flight Deck Gaming is a gaming solutions provider that is focused on the transit industry. The Los Angeles, California based company represents a unique combination of airline operations and networked gaming expertise. Flight Deck Gaming employs a diverse portfolio of gaming applications to deliver custom gaming solutions to its partners who come from the various sectors of the transit industry including airlines, cruise, resorts and rail. Although Flight Deck Gaming’s solution set supports the entire transit industry, the company’s initial focus is the aviation industry and its more than 4 billion annual passengers.
For more information about Flight Deck Gaming, please visit www.flightdeckgaming.com or contact Howard Woods hwoods@fltdg.com 818 404 5478
About digEcor, Inc.
digEcor provides a turn-key solution specializing in sourcing, encoding, and encrypting content; pioneering proprietary personal media platforms; and implementing end-to-end programs. With years of experience, digEcor's team focuses on increasing traveler satisfaction, creating easily executed solutions, and generating revenue opportunities for clients. Based in Springville, Utah, digEcor has offices in Seattle, Atlanta, Miami, Amsterdam, Shanghai, Singapore, and Toulouse, France.
For more information about digEcor, please visit www.digEcor.com or contact Adam Williams
awilliams@digecor.com 801 489 2031
DATE: 07/14/09
Flight Deck Gaming Takes Off!
Company to provide games for the Aviation Industries 4 Billion annual customers
Los Angeles, CA July 14, 2009 - Today Flight Deck Gaming (www.flightdeckgaming.com) announced the launch of its business, which provides gaming solutions to the transit industry.
The Los Angeles, California based company will utilize a diverse portfolio of gaming applications to deliver custom gaming solutions to its partners who come from the various sectors of the transit industry including airlines, cruise, resorts and rail.
Although Flight Deck Gaming’s solution set supports the entire transit industry, the company’s initial focus is the aviation industry and its more than 4 billion annual passengers.
“Maximizing the entertainment experience of its passengers is an area of increasing importance to the airline industry”, stated Howard E. Woods, Flight Deck Gaming’s Founder and Managing Partner. “In addition, with the industry expecting to lose over $9 billion in 2009 alone, our industry partners have expressed a strong interest in the ancillary revenue associated with our unique gaming solutions.”
According to statistical research firm GrabStats (www.grabstats.com), online gaming revenue will exceed $20 billion by 2012 and according to In-Stat Research, the revenue generated from WiFi enabled devices will exceed $1 billion by 2012. These facts coupled with what has been described as the long “captured audience” nature of most transit passengers, has created an attractive environment through which transit providers hope to exploit the commercial potential of gaming.
A decorated fighter pilot, Woods brings more than 20 years of diverse aviation related management and consulting experience to Flight Deck Gaming. The list of organizations that have utilized Woods’ skill set include the US Navy, Boeing, Air France, Delta and American Airlines.
Woods has been joined at the company by Justin F. Beckett, a 10 year Internet gaming and entertainment Executive, who has developed related solutions for a partner list which includes MySpace, Microsoft, Sony, American Idol and AOL.
For more information contact:
Managing Partner
Howard Woods
818 404 5478
www.flightdeckgaming.com
DATE: 07/14/09
Airlines: Gamings Next Frontier
By Howard E. Woods
An emergent movement is unfolding in the aviation industry. Airlines and infrastructure providers are aligning themselves to further commercialize their captive market, and become transit gaming entertainment providers to the +4B global aviation passenger audience.
While ad-hoc games are now frequently available for a fee as part of the inflight entertainment environment, the focus over the next few years will be on providing a contemporary gaming experience for passengers and capturing a more significant part of the gaming value chain.
According to statistical research firm Grab Stats, global revenues from online gaming are projected to exceed $20 billion by 2012 while the revenue generated from WiFi enabled devices will exceed $1 billion over the same period according to In-Stat Research.
We have assessed this sector at Flight Deck Gaming and feel that this growth trend, combined with an audience that is captive and highly engaged in a low clutter environment, represents a +$1.5B opportunity for the industry.
According to the International Air Transport Association (IATA), the airline industry collectively expects to lose $9B in 2009. As their forecast for 2010 calls for a continuation of this downward trend, the opportunity in gaming is a welcomed bright spot for the industry.
“The industry is increasingly motivated to create value and generate revenue streams beyond that associated with their core role as transportation providers. We recognize the significant latent value represented by the highly engaged entertainment time share that is available with the passenger and transit audiences” stated Brad Heckel, President of digEcor, Inc. an inflight entertainment (IFE) solutions provider.
Many airlines currently offer games, typically for a fee, on their aircraft which deploy various on-demand entertainment platforms. At their best, these deployments generate incremental revenue and or may offset some of the IFE costs. However, these deployments were not designed to allow the airlines to participate in the life-cycle value generated by their passenger gamers.
Viewed as an industry, the current state of game / gaming entertainment can be characterized as encompassing a variety of disparate approaches, infrastructure, capabilities and user interfaces. Legacy relationships prevail along the business chain between game developers and game players which present unnecessary costs to airlines and the industry. To be sure, the industry has various unique challenges that partly account for their evolution outside of the contemporary gaming industry.
Generally, however, providing games entertainment to passengers is viewed as a necessary cost of doing business as most airlines are encumbered with:
- Obsolete content cost / fee structures
- Revenue creation that is a fraction of the value created in the contemporary gaming value chain
- Mediocre game player user experience
- A transactional vs. life-cycle relationship with the passenger
For myriad reasons, the current status quo won’t last much longer. In particular the deployment of upgrades to the industry’s connectivity infrastructure is accelerating and the gaming industry continues to evolve various and more profitable business models and revenue streams. Passenger game players continue to expect an experience in transit that is the same or on par with their gaming experience in other domains.
The industry’s view and approach to transit gaming entertainment and the relationship with its passengers has been redefined. The leaders are transitioning away from being providers of ad-hoc games to being a point of entry and a central node in the life-cycle of their passenger game players.
We recognize that the traditional perspective on games, the passenger and value creation has been a limited and transactional view. It addresses only a fraction of the audience’s value as game enthusiasts and it is the goal of Flight Deck Gaming to help our partners surpass this perspective.
Flight Deck Gaming, Inc.
Howard E. Woods
Managing Partner
hwoods@fltdg.com
www.flightdeckgaming.com
