APEX Experience: MultiMedia Market 2017

apex multimedia market

berlin 2017

Variety Show Netflix downloads, YouTube breaks, smart programming and more!

sponsored by

Around Berlin

4

7

Event Venues 1. Mercure Hotel MOA Berlin MOA Bogen, Stephanstrasse 41 2. Charlottenburg Palace Spandauer Damm 20-24

Places of Interest 3. Berlin Wall 4.

5.

Brandenburg Gate Pariser Platz Reichstag Platz der Republik 1

6. Alexanderplatz 7. Potsdamer Platz 8. Berliner Fernsehturm Panoramastrasse 1A

Restaurants 9. Einsunternull Hannoversche Strasse 1 10. Pauly Saal Auguststrasse 11–13 11. Burgermeister Oberbaumstrasse 8 12. Cafe Jacques Maybachufer 8

Bars 13. Paulaner im Spreebogen Alt-Moabit 98 14. The Pier Invalidenstrasse 30 15. Bar Zentral Lotte-Lenya-Bogen 551 16. Kallasch& – Moabiter Barprojekt Unionstrasse 2 17. Walhalla Krefelder Strasse 6

ILLUSTRATION: RICARDO POLO

3

Give your passengers what they crave

Premium content with global reach

Live and on-demand entertainment

Ultra-fast internet service

‌from the comfort of their own devices

To satisfy their craving, visit globaleagle.com

PHOTO: RICHARD THEEMLING

Quiz Night!

Last year’s quiz night in Amsterdam.

Dessert isn’t the main attraction at the APEX MultiMedia Market networking party – it’s the friendly trivia competition. Drinks and dinner will be followed by the annual battle to be the team that knows it all. Who will take the cake this year?

Follow us @theAPEXassoc

25 April 19:30–22:30 Charlottenburg Palace

APEX MultiMedia Market Experience

3

News Bites Download This Netflix introduced offline playback in December, allowing subscribers to download movies and TV shows to their smartphones and tablets.

“We wanted to better serve members and provide [them with] more control over their watching experience,” says a Netflix spokesperson.

“I’m sure Netflix, like other digital content platforms, will be putting more pressure on Hollywood studios to access early-window bookings, but airlines can still offer the most recent blockbusters before they do.” Éric Lauzon, manager of Multimedia Entertainment, Air Canada

“While I don’t think it’s revolutionary, this change is going to make binge watching easier for Netflix customers who can’t connect in flight.”

Brian Richardson, director of IFE and Connectivity, American Airlines

Bye Bye, Seatback

4

APEX MultiMedia Market Experience

ILLUSTRATION: FABRIZIO MORRA

American Airlines’ upcoming Boeing 737 MAX fleet will not be equipped with seatback screens.

Instead, the airline will adopt a wireless IFE system. Noting that 90 percent of its passengers already bring electronic devices on board, a spokesperson for the airline said it makes sense to give customers the best entertainment and connectivity options, “rather than installing seatback monitors that will be obsolete within a few years.” The airline plans to keep the seatback screens already installed on its wide-body fleet.

Visit us at apex.aero

Oscars Preview In anticipation of the 89th Academy Awards, Virgin Atlantic added every Oscar-nominated film in the categories of Best Film, Actor, Director, Supporting Actor, Supporting Actress and Adapted Screenplay to its IFE system. Among the films added to the catalog were La La Land, Manchester by the Sea and Moonlight.

“Virgin Atlantic enjoys a strong association with film,” said the airline’s EVP of Customer, Mark Anderson.

Print Lives On

“This spring our IFE will be extra special as we showcase all of the major nominated movies for customers to enjoy.”

Last year, PressReader surveyed APEX members to discover that 20 percent have stopped offering print media on board, with 50 percent planning to do the same in the next five years. Meanwhile, Dawson Media Direct polled frequent flyers and found that, despite being comfortable with digital devices, 82 percent aged 21–39 viewed travel time as reading time, preferring print media for longer, in-depth content.

Mark Anderson, EVP of Customer, Virgin Atlantic

Live on Air According to research by Nielsen, sporting events accounted for 93 percent of the top live TV broadcasts in 2015, compared to only 14 percent a decade earlier. To satisfy the cravings of traveling sports fans, IMG Media launched Sport24 in 2012, offering the only 24-hour sports channel for the global air travel and cruise markets. “Fans still have a huge desire to watch sport as it happens,” says Richard Wise, IMG’s senior vice-president, “unlike other content, which in many cases can be watched on video-on-demand systems.”

Follow us @theAPEXassoc

APEX MultiMedia Market Experience

5

News Bites Netflix of Asia Binge watching, content variety and the ability to be entertained whenever, wherever, were the trends presented in a Nielsen survey on video-on-demand viewership in Asia Pacific. Not surprisingly, the region has its own crop of streaming platforms to satiate demand for local content. “There is a strong desire for locally produced content,” says Shane Mitchell, Mediacorp’s chief digital officer, adding that homegrown entertainment provides viewers with a “strong sense of ownership and belonging.”

What They Listened to Among the most-listenedto artists on board Qantas flights in 2016 were Adele, Beyoncé and Britney Spears, followed by Barbra Streisand, Australian singer-songwriter Bernard Fanning and Justin Bieber.

1 adele 2 beyoncé 3 britney spears 4 barbra streisand 5 bernard fanning 6 justin bieber

Seatback Rage A disgruntled Qantas passenger’s claim for $73 in compensation for a broken IFE screen on a flight between Hong Kong and Sydney has been told to take the claim to a higher court. The flight, which took place in May 2016, was delayed because of problems with the IFE system, but took off after passengers were told it had been fixed. The passenger, Zoran Ivanovic was not satisfied with an apology from Qantas or the airline’s offer of 3,000 frequent-flyer points. He calculated he could have watched five movies during the 10-hour flight, which he estimated would have cost him $14.70 each on the ground.

6

APEX MultiMedia Market Experience

Visit us at apex.aero

For the latest news, subscribe to > APEX.AERO/NEWSLETTER

Bad News Travels According to Panasonic Avionics’ David Bruner, vice-president of Global Communications Services, passengers dwelled on news channels longer in 2016. “This was so different from last year, when we saw a lot of people pop into the news channels, stay 20 minutes or even less, and then go watch sports,” says Bruner. “What we’re seeing now is sustained news viewing.”

most-viewed in-flight news stories of 2016

• Brussels Airport Bombings • War in Syria • Terror Attack in Nice • Turkish Coup Attempt • US Presidential Campaign Source: Panasonic Avionics

Game On The release trailer for Nintendo Switch, a hometo-mobile gaming console, has been viewed over 29 million times since it was posted on YouTube in October. The video shows travelers using Switch in the airplane cabin, where the device’s controllers are separated from the screen, which can then be propped up on a tray table, opening up interesting possibilities for gaming on board.

ILLUSTRATION: FABRIZIO MORRA

“It doesn’t take long after a new game or console hits store shelves before we see it on board in the hands of our customers.”

Adam Rucker, Social Media and PR Communications Specialist, Southwest Airlines

Follow us @theAPEXassoc

APEX MultiMedia Market Experience

7

And Now, a YouTube Break

Attendees at the TED2016 conference heard more than 90 speakers over five days, some of which lasted 12 hours, in addition to several post-talk activities. To reset the mood in between heavy topics such as racism, climate change and geopolitics, TED used short videos as palate cleansers, functioning like that mini scoop of sorbet served during a multicourse meal.

On a long-haul flight, passengers might be looking for a similar break from a marathon of Mr. Robot or a double feature of full-length films. Kevin Clark, Bluebox Aviation Systems’ CEO, says short videos, such as offline YouTube programming, provide passengers with an “asymmetrical” content diet. “The capacity of [IFE] units is increasing quite dramatically,” he says. “It gives airlines a greater scope [of entertainment].”

Emirates, known for its expansive in-flight entertainment catalog, features content from

8

APEX MultiMedia Market Experience

popular YouTubers. Delta Air Lines delivers Refinery29’s three- to 10-minute how-to programs on fashion and lifestyle, which are popular among millennial women. And through Entertainment in Motion, Global Eagle Entertainment distributes content from The QYOU, a provider of short online videos that target passengers according to time of day – “peppy morning, family afternoon and late-night style” – and range from extreme sports to artist spotlights.

“The addition of The QYOU is our first agreement for native digital content, which is exploding in popularity,” says Neal Rothman, GEE’s vicepresident of Content Distribution. “This new catalog further diversifies the content offered to our customers and allows us to stay ahead of shifting viewership trends.”

Turns out, YouTube videos might be more than sheer distraction.

Visit us at apex.aero

Airline Originals

ILLUSTRATION: MARCELO CACERES PHOTOS UNITED AIRLINES; TURKISH AIRLINES

The race for hyper-exclusive content among streaming platforms like Amazon, HBO and Netflix is not unlike the one faced by the airline industry. Airlines are catching on, producing movies and documentaries for in flight first.

destination: team usa

non-transferable

united airlines and tribeca digital studios A documentary featuring five Olympic hopefuls that began airing on flights in the months leading up to the Rio Olympics.

sponsored by turkish airlines and others This romantic comedy starring Internet sensations traveling around Europe is part of Turkish Airlines’ larger marketing strategy targeting millennials.

“During July and August, the film was one of our top 10 entertainment selections watched overall … It was a creative way to … bring the sponsorships on board and create a piece of entertainment that our customers would love to watch.”

Daniel Cuellar, senior manager of Onboard Product Development, United Airlines

Follow us @theAPEXassoc

various virgin produced The film, television and entertainment division of Virgin Group has generated a plethora of original programming including the “#VXsafetydance” video, city guides and celebrity interviews. It’s also responsible for Hollywood blockbusters Limitless and Bad Moms.

APEX MultiMedia Market Experience

9

Mimicking Mobile The new navigation feels “more like interacting with an iPhone.”

Joe Kiely Delta Air Lines Customer Experience. It “gives us greater flexibility to make changes,” says Lissette Alvis, a senior analyst on Delta’s Marketing IFE and Wi-Fi Operations team. When compared to the

ILLUSTRATION: RICARDO POLO

Swipe left. Pinch to zoom. Tap to select.

Mobile devices have changed our relationship with screens and airlines are rethinking their approach to interface design. “GUIs [graphical user interfaces] need to mimic the patterns we see on the ground,” says Paul Colley, Spafax’s vice-president of Software Development. “It took airlines a lot of time to come around to this idea, but now that’s their starting point.”

The redesigned user experience of Delta Air Line’s seatback system feels “more like interacting with an iPhone,” says Joe Kiely, the airline’s managing director of Product and

10

APEX MultiMedia Market Experience

Visit us at apex.aero

Trends in GUI Design hard-coded, hardware-first infrastructure of legacy systems, a software-based GUI provides more flexibility, resembling the framework of mobile devices that allow updates to be pushed with more ease. But, it’s vital that design puts consistency and intuitiveness first.

“You need to be careful that you’re not expecting every passenger to be familiar with tablets or a specific hardware,” says Martin Darbyshire, CEO of London-based tangerine, which has worked with Virgin Australia, Cathay Pacific and British Airways. “The system needs to be immediately familiar.”

Follow us @theAPEXassoc

consistency: Airlines often have a variety of IFE systems across their fleets, which means passengers might need to learn a new system on board. A software-based GUI would help align different systems. personalization: Passengers are increasingly looking for content recommendations such as those on Netflix and Spotify. Algorithms employed by these applications pick up on preferences to offer users more tailored experiences. revenue: New ancillary revenue streams could emerge in IFE content. FlightPath3D’s In-Flight Travel Planner moving map allows passengers to browse travel offers and make bookings while on board.

APEX MultiMedia Market Experience

11

Caroline Beaton SVP International Programme Sales Viacom International Media Networks Caroline is responsible for leading the strategic direction of Viacom’s Programme and Format Sales division internationally and across all VIMN brands, platforms and businesses to drive program sales and distribution worldwide.

She also oversees the expansion of VIMN’s extensive format library.

> FAST FACTS FREQUENT FLIGHT:

FAVORITE AIRPORT:

NOW READING:

FAVORITE SOCIAL NETWORK:

LHR–JFK

Sapiens: A Brief History of Humankind

by Yuval Noah Harari

12

AMS

Facebook

APEX MultiMedia Market Experience

Every job has a cool factor.

What’s yours?

Going to the MTV Awards and meeting the odd famous person (and sometimes they are odd).

What entertainment trends are you watching?

It’s all about multigenerational, lifeaffirming, kind-spirited, irreverent, fun and funny shows that give us hope in what can sometimes feel like dark times! My 17-year-old daughter has just taught me how to use Snapchat – next hot idea: “My Mum’s Better at Snapchat Than You”.

If you weren’t doing your current job, what would you love to be doing?

Stand-up comedian Best advice you’ve ever received?

Do one thing every day that scares you.

What would you change about the architecture of aircraft?

En-suite bathrooms.

Do you have any crazy ideas for improving the passenger experience?

Onboard yoga (doesn’t even need to be hot).

What’s your first travel memory?

In a VW campervan traveling around Europe as a three-year-old – I refused to wear pants for two days straight. These days, I’m much better with that.

How many days can you last with just a carry-on?

Three.

What’s the best seat on an airplane?

The pilot’s seat.

Foolproof travel tip?

Drink lots of water and set your watch to the local time of your destination the minute you’re on board.

What’s the strangest conversation you’ve ever had in flight?

In the 1990s, the crew on a transatlantic flight was sure I was the wife of Dave Stewart of Eurythmics; they wouldn’t be dissuaded. I haven’t dared Google what she looks like, but apparently I’m her doppelgänger.

Best or oddest in-flight entertainment experience?

I do a lot of plane crying. It’s a real thing!

Visit us at apex.aero

Smart Programming Audience measurement has played a role in TV programming since the 1950s, but datadriven programming for IFE is continually being tested. “In the next five years, we’ll be able to dynamically update our content based on real-time usage statistics,” Worley forecasts.

With more emphasis on analytics, she envisions that “the focus of content service providers and media integrators will shift from the manual transfer and upload of files to real-time analytics of file performance.”

Analytics for wireless IFE platforms are capable of offering richer data about device and media consumption preferences and can even be consolidated with that of seatback systems, says Michael Reilly, VP Entertainment Services for Arconics. “The richer the data, the better the picture of what customer preferences are, what they clearly like and dislike, what they are willing and not willing to pay for.”

ILLUSTRATION: MARCELO CÁCERES

Backend platforms for in-flight entertainment (IFE) systems are helping airlines make smarter content buys tailored to passengers’ preferences. Megan Worley, program manager, Inflight and Admirals Club Entertainment and Connectivity for American Airlines, explains it’s all about data.

“The integration of data with programming strategy is becoming more prominent year after year,” Worley says. “We are able to see how individual content files – movies, TV shows, music, games – are performing each month and then use that information to curate the next cycle’s content set.”

For performance analysis, Worley focuses on “uniques,” the number of times a content file was accessed by an individual user, and “duration,” how long a file was played. “We can drill it down to the specific seat number … This allows us to slice the usage data in numerous ways according to our analysis needs, which in turn, shapes our programming strategy,” she says.

Follow us @theAPEXassoc

APEX MultiMedia Market Experience

13

Destination Inspiration w

Not all destination videos are made the same. From action-packed adventures to slow-paced sojourns, there’s more than one way to explore a destination via video. host or no host?

For airlines that prefer hosts, many have turned to the notoriously sure-minded Anthony Bourdain for his shows No Reservations, The Layover and Parts Unknown. “You’re going to either love him or hate him, but he’s going to tell it like he sees it,” says Chris Collins, cofounding producer of the Bourdain programs. Collins credits Bourdain’s non-apologetic attitude as one of the keys to the shows’ successes. And Éric Lauzon, Air Canada’s multimedia entertainment manager adds, “People are savvier these days and tend to trust word of mouth over brands and companies – especially when it comes to people they can relate to.”

documentary Sometimes it’s the story, rather than the destination, that compels us to travel.

Flame Distribution supplies videos that might inspire a trip without directly telling travelers what museums to visit or where to sample local delicacies. Its catalog includes documentaries on history, global issues and human-interest stories that are deeply anchored in their destinations.

Titles such as Chasing the Light, about an adventure

14

APEX MultiMedia Market Experience

PHOTOS: GOASEAN, CNN, FLAME DISTRIBUTION

But not everyone agrees. Fred Mullins, CEO and founder of A Look At Media, says 25 percent of prospective clients prefer videos with just the sights, scenery and a voiceover, fearing a host may be wrongly perceived as the airline spokesperson.

Visit us at apex.aero

photographer and his quest for a great photo, showcases the wild landscapes of Australia’s Kimberley region, while Ancient Angkor delves into the history of the lost city’s temples.

ambient If there’s an audience for the moving map, there’s an audience for ambient destination content: long-panning scenes of landscapes with little more action than rolling fields and crashing waves. Add a calming soundtrack and ambient videos make for culturally neutral content that’s ideal for promoting relaxation during boarding and pre-landing, when passengers might be anxious.

themed Foodie? Architecture buff? Adventure addict? For travelers with penchants for particular activities, themed destination videos provide tailored tours.

Those who want their journeys to be as sustainable as possible might choose to watch a program on ecotourism. Halal foodies may chuckle over the aptly named show, The Halal Foodie, hosted

by Malaysia’s biggest comedian, Papi Zak, who stirs up laughs as he hunts down Muslim-friendly cuisine all over Asia.

Follow us @theAPEXassoc

APEX MultiMedia Market Experience

15

Chris Hampson VP, Digital and Inflight Sales Flame Distribution

Chris Hampson is responsible for in-flight and digital content strategy for a catalog of over 3,000 hours of non-scripted TV and feature documentaries and films. He has also worked for Pilot Film & TV Productions in London and Los Angeles, and for Warner Music Group and Sony Music Entertainment.

> FAST FACTS NOW LISTENING TO:

BBC Radio, or anything 90s, or techno or garage on Spotify SEATBACK OR PED?

Seatback

PASSPORT STAMP YOU WISH YOU HAD:

Democratic People’s Republic of Korea FAVORITE SOCIAL NETWORK:

LinkedIn

16

APEX MultiMedia Market Experience

Did you choose the airline industry or did it choose you?

I originally chose the music industry, but through a series of fortunate career moves, discovered the airline industry was a lot more fun!

What entertainment trends are you watching?

The evolution of in-flight Wi-Fi, satellite connectivity and collaborations with streaming video and music services.

What’s overlooked in the passenger experience?

Quite often, the importance of an effective social media team.

What never ceases to amaze you in your industry?

The number of TV producers who aren’t aware of the value of the IFE market.

How do entertainment expectations change when people travel?

Passengers will always want the latest Hollywood content, but they also want a choice of alternatives.

So the offerings must be broad enough to speak to multiple nationalities and demographics across TV and film.

What would you change about the architecture of aircraft?

I’m a big fan of Air New Zealand’s Skycouch. More of these on other airlines, please. And more soundproofing or noise-canceling technology.

What do you do after you’ve settled into your airplane seat?

Empty my pockets of my wallet, phone and passport. Plug in my phone to a USB port if available, browse the video content options and, if nobody’s in the seat next to me, set that screen to the moving map, so I can check the flight status while I watch movies on my screen.

Your top three films of all time?

Heat, This Is Spinal Tap, Eternal Sunshine of the Spotless Mind.

Visit us at apex.aero

Closed Captioning Update the apex tech committee achieved consensus on: > The “pass-through” concept: If the closed captions and audio descriptions don’t already exist in a film, airlines should not be required to create them > Closed captions and audio descriptions should only be required in English (later expanded to include Spanish) > Rules should only apply to content of US origin > Hardware and software upgrades should not apply to bitmap IFE systems, and overhead screens should be exempted from the regulations entirely

demonstrates that some CSPs have been ill advising their airline clients. “These airlines were being told that they would have to start ordering content with closed captions and audio descriptions in April, and that’s certainly not the case.” A complete review of the issues will be offered at APEX’s MultiMedia Market and TECH conferences.

ILLUSTRATION: JORGE DE LA PAZ

As a result of the activities of the US Department of Transportation’s ACCESS Advisory Committee, and with the support and leadership of APEX’s Technology Committee and Closed Caption Working Group, the in-flight entertainment (IFE) industry and the accessibility advocacy community reached an agreement last November on a set of recommendations that will shape the Department of Transportation’s rulemaking around accessible IFE for deaf and blind passengers.

The DOT is now expected to issue a notice of proposed rulemaking in May or June for feedback from stakeholders. “I’m not anticipating any significant changes because this has already gone through the reg-neg process,” says Michael Childers, chair of the APEX Technology Committee, “assuming there will be no changes in attitude from the new administration – and I’m not at all sure we can count on that.”

If the DOT goes forward with the recommendations, it could take weeks or months before regulations come into effect. In the interim, content service providers (CSPs) will need to be prepared. Unfortunately, Childers says feedback

Follow us @theAPEXassoc

APEX MultiMedia Market Experience

17

The airline reached out to Encore, which sought It’s not every day that a film distributor receives out the producers, who then granted permission feedback about a passenger’s discovery of a for the passenger to obtain a copy of the movie. movie: “I felt led to watch a Japanese movie …

With a variety of films at their disposal, The Pearls of the Stone Man, which was very passengers are more likely to sample something touching,” one passenger wrote to an airline. The new. “With passenger devices and aircraft note goes on to explain how after the flight, the connectivity, all the mainstream content is passenger searched high and low for the likely already viewed or downloaded movie, but it seemed the only place the film could be found with English “People are more onto personal devices,” says Toh. “This makes niche and not-easilysubtitles was on an airplane. open-minded accessible content desirable.”

“People are more open-minded when traveling.”

But even within the genre of when traveling and are willing films that are not the mainstream, to watch programming that they Cathie Trotta the range runs from obscure wouldn’t normally watch,” says Penny Black Media Cathie Trotta, managing director of art-for-art’s-sake titles to awardwinning box-office hits. “This spectrum Penny Black Media. contributes greatly to an airline’s IFE With IFE systems growing in capacity, catalog by appealing to the diverse tastes of airlines are able to curate diverse catalogs – with passengers,” says Terry Steiner, president of more art house and international content – that Terry Steiner International, “and affords them cater to a mix of viewers, says Jovita Toh, CEO of the opportunity to see films they may not have Encore Inflight. This makes for moments like the had the chance to see at the theater.” one recounted above – and happy endings, too:

18

APEX MultiMedia Market Experience

Visit us at apex.aero

PHOTOS: ISTOCK BY GETTY; SHUTTERSTOCK; © 2016 MY UNCLE PRODUCTION COMMITTEE

Hidden Gems

EDITORIAL

PRODUCTION

> Publisher Al St. Germain al.stgermain@spafax.com

> Production Director Joelle Irvine

> Managing Editor Caroline Ku caroline.ku@spafax.com > Digital Editor Kristina Velan kristina.velan@spafax.com > Digital Content Specialist Ari Magnusson > Deputy Editor Valerie Silva > Research Assistant Ella Ponomarov ART > Art Director Nicolas Venturelli

ILLUSTRATION: RICARDO POLO

> Graphic Designer Angelica Geisse > Contributors Jorge De la Paz, Marisa Garcia, Jasmin Legatos, Fabrizio Morra, Ricardo Polo, Katie Sehl

> Production Manager Felipe Batista Nunes > Proofreader Robert Ronald ADVERTISING > Sales Director Steve O’Connor steve.oconnor@spafax.com +44 207 906 2077 > Ad Production Manager Mary Shaw mary.shaw@spafax.com > Ad Production Coordinator Joanna Forbes joanna.forbes@spafax.com Bookmark Content and Communications A Spafax Group Company > CEO Bookmark Raymond Girard > Senior Vice-President, Content Strategy Arjun Basu

sponsored by

@theAPEXassoc

@theAPEXassoc

facebook.com/ apex.aero

apex.aero

apex.aero/ newsletter