Aviation Applications and GXTV

Adrian McAloonDirector, Aviation Content and Applications

AgendaAviation applications • The power of applications as a revenue driver• Progress since October ‘Aviation Applications 2013’ event• The power of Gateway (SEP)

• Telemedicine• VOD content

• What’s next?

Debunking the 5 on board TV ‘mysteries’• The importance of on board live TV• Why Inmarsat is doing GXTV • Inmarsat’s flexible GXTV approach

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The Inmarsat applications strategy

SwiftBroadband

Global Xpress

Applications

Empowering solutions with an applications environment

Gateway

Resilience and safety

Capacity and speed

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Remember the old wireless marketplace?

Why is Inmarsat building its own app ecosystem?

Remember the old wireless marketplace?

Applications became the new wireless marketplace!

Why is Inmarsat building its own app ecosystem?

Remember the old wireless marketplace?

Applications became the new wireless marketplace!

And the innovation remains unstoppable

Why is Inmarsat building its own app ecosystem?

The application ecosystem -A well-worn path that delivers:

Unrealized opportunity

Simplicity to complex and numerous marketplaces

Solutions to heavy development and deployment schedules

Openness in closed marketplaces

Solutions for walled garden minutia

The power of application ecosystems -1

Applications now define wireless

connectivity

The power of application ecosystems -2

Applications now define our

telecommunicationsneed

App revenues are real and rising

April 2012 – April 2014$400M – $1,200M

But what about the future?

Source: The Mobile Economy 2014 - GSM

We’ve seen nothing yet…

Source: The Mobile Economy 2014 - GSM

So what is Inmarsat doing with Applications?

Opening the aviation market place for:

No, we’re opening the aviation marketplace to:

NEW IDEAS AND NEW REVENUES

iBeer? Twitter? Angry Birds?

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What NEW IDEAs?

Put simply…that’s up to the market!

We asked you about NEW IDEAS

Which application category is of most interest to you? Please rank 1-3

All are interesting…makes sense

Which flight deck application sub-category is of most interest to you?

All are interesting…makes sense

Which flight deck application sub-category is of most interest to you?

CAPapplication

CAP ecosystem – delivering the complex aviation market

Simplifying the aviation market for CAPs

Connectivity

Certification/installation

On-board hardware

Service provision

Aircraft operators

CAPapplication

CAP ecosystem – delivering the complex aviation market

Simplifying the aviation market for CAPs

Connectivity

Certification/installation

On-board hardware

Service provision

Aircraft operators

CAP ecosystem Principles

Comprehensive “storefront” for applications and services

Flexible end-user billing for apps and content

Universal set of APIs to expose network and service functionality

Efficient content delivery based upon APIs

Rich developer ecosystem

CAP commercial decision process

Identify need for content pre-positioning servicesPeak delivery Off-peak delivery No pre-positioning required

Determine operational environmentIn/Out Customer Bandwidth Hosting requirement No real-time traffic required

Set application pricing modelCharge ‘At download’ Subscription based On-going usage based

Select target audienceCommercial air transport Business Aviation Crew or consumer

Gateway tools for CAPsThe Inmarsat developer portal - ready for action

https://developer.inmarsat.com

Initial APIs published

Commercial terms will be rolled out over

the summer with each VAR

Expecting significant API and testing availability in

September

The power of Gateway Telemedicine applications

Gateway in operation: Telemedicine

Gateway delivers:• GX connectivity• Billing flexibility and simplicity - Either the patient or the airline can be charged

for the time they are connected • Passenger Billed after event via post-paid• Airline Billed via monthly bandwidth charge

• Location API • Used to determine 1st available doctor location • Used to determine best treatment options

The App: A premium on-demand service putting passengers in direct video contact with a medical professional

The scenario: Airline passenger has taken ill

• Patient and aircraft operator need/want immediate response• Service requires dedicated bandwidth to ensure quality of service• Airline wants to ensure crisis is managed and overall aircraft bandwidth is not impacted

Gateway in operation:Telemedicine

Airline billing –App providers can charge:

Set-up fees

Monthly service fees

Per aircraft fees

Usage as part of aircraft bandwidth allocation

Usage as a separate bandwidth charge

Patient / insurance billing –App providers can charge:

One-time

Monthly service fees

Usage-only fees

Pre-paid or post-paid

Billing flexibility

The power of GatewayVOD

Gateway in operation: VOD

Gateway delivers:• GX connectivity – Delivery within 24 hours• Billing flexibility and simplicity

• Either the news organization or the airline can be charged for the content

• Location API • Used to manage content geo location rules

• Used to determine content applicability for fleet

The App: A news organization and airline want to get their perishable VOD content delivered on-board fast

The scenario:• Airline passengers want specific ‘approved’ news headlines on specific flights • Aircraft operators want approved and automated specific content delivered

to specific aircraft• Airlines want to empower content providers directly with useful tools

and get out of the way

Aviation applications 2013 A powerful message of innovation for the market

Aviation applications 2013 A powerful message of innovation for the market

Apps funding and support is available

Aviation Applications 2014Save the date!

30 September 2014• Inmarsat HQ

Focus areas:• Commercial terms

• Distribution ‘rules of the road’

• API review with Q&A

• 1:1 Application provider meetings

Conclusion and question

Applications represent our combined future

so

Why are we even talking about GXTV?

Aviation applications – GXTV ‘The on board live television mystery’

The TV mystery part 1 - Hey Inmarsat, why don’t you just step aside?

WE GET IT –Consumers want to fully control content

3. OTT –IFE has compelling content

2. OTT –Not a good sports solution

1. OTT –Bandwidth cost

4. Traditional TV –No Rights

The TV mystery part 2 -Who even watches TV anymore? Media consumption patterns - 2013

Source: Nielsen Cross Platform Report – March 2013

1. TV is very important to consumers

2. TV remains a fundamental media

consumption behavior

3. TV drives onlineactivity

Today, Global passengers can:

Did it all fall apart for TV in 2014?

Source: Nielsen Cross Platform Report – March 2014

1. Only slight changes

2. TV remains a fundamentalmedia consumption behavior

3. Just ask our friends at Twitter about the power

of TV

The mystery continues – people like TV

Source: Nielsen Cross Platform Report – March 2014

What about all those wireless devices you talked about?

TV’s power is global

TV mystery part 3 –TV on-board adds only cost… not value

Consumers are connecting while they watch

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TV and Twitter

Source: Nielsen Cross Platform Report – March 2014

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The TV mystery part 4 - contentWhich content is relevant to the on-board TV value proposition?

Very relevant

Irrelevant

RelevantVery relevant

Sports News

EventsTime-

sensitive content

MoviesTV

shows

Content - why is sport content so relevant/expensive?

The global TV sports audience

ATP Wimbledon

Final

F1 World Champions Bahrain GP

NFL Super Bowl

Champions League Final

UEFA Euro Final

FIFA World Cup Final

Sport contentDriving the entire media sector

Sport contentSport24 has all the answers?

Monday June 9thLive content – 0%Key content• Reviews• Classic goals• Another chance…

Good use of GX?

Good passenger experience?

ContentMore channels means a better TV experience?

Great highlights but

little beef

Do those Kardashians

need this much ‘keeping up with’ over

GX?

The TV mystery part 5What do Airlines want?

Price

Live, near live and VOD

Sports andmarquee events

Flexibility

Mystery solvedInmarsat’s GXTV solution

Up to 3 Live TV multicast channelsA flexible events infrastructureVOD delivery – regional news and events

Content

Live news

Live business news

Sports channel

Worldwide newsand events

Live Stream

Live Stream

Live and VOD

VOD

On board software

In Seat IFE System

W-IFE Application

Mul

ticas

tLi

ve

On board hardware

Head end

And if wasn't for those pesky Inmarsat kids…

TV mystery Issue

1 Just get out of the way Inmarsat

2 Nobody watches TV anymore

3 TV on board is just cost…not adding value

4 What’s all the content fuss about?

5 What do airlines want?

Solved

Simple, we can’t

Actually, they do

Actually, it drives connectivity

Sports an events

Key content, events and flexibility

Thank you