Looks like jetBlue and Airtran are now going to offer XM satellite radio. Makes me wonder if an announcement from Southwest will follow shortly.
JetBlue to introduce digital satellite radio, pay-per-view movies
Tuesday January 6, 6:18 pm ET
By Brad Foss, AP Business Writer
WASHINGTON (AP) -- Through agreements with XM Satellite Radio and News Corp., low-fare carrier JetBlue Airways said Tuesday it will augment its in-flight entertainment with about 100 channels of free digital satellite radio and two pay-per-view movie channels.
The New York-based carrier, which in 2000 became the first airline to offer live satellite programming through TVs installed in every seatback, also said it would add 12 more channels of DirecTV.
JetBlue chief executive David Neeleman said in an interview that with ever more carriers matching its cheap domestic fares, it has become increasingly important to offer unique service, and that entertainment is just one way to do that.
"Frankly, I think the TVs and the entertainment are a little bit overrated and what's underrated is the whole way we do business," Neeleman said, referring to the low-cost operating strategy that makes it possible for JetBlue, Southwest Airlines and others to profit from inexpensive fares.
Separately, JetBlue on Wednesday will mount its largest-ever expansion with a goal of picking off local customers from major carriers, such as American Airlines and US Airways, as well as from the nation's largest low-fare carrier, Southwest.
For XM, the partnership with JetBlue gives it access to some 12 million listeners -- people who it hopes will one day become subscribers. The satellite radio provider, which is not profitable, currently has about 1.2 million subscribers.
News Corp., meanwhile, gains viewers to whom it can market news, sports and other programs developed by its Fox Entertainment Group subsidiary, including "The Simpsons." In addition, there will be two pay-per-view channels showing 20th Century Fox movies -- one for first-run flicks and another for classics.
The pay-per-view service will cost about $3 per movie, enough to break even, Neeleman said. Passengers will swipe credit cards through JetBlue's in-seat payment system.
Neeleman said the new entertainment options would be available on all planes by the end of the year. He would not discuss the financial details of the agreements.
On Tuesday, shares of JetBlue climbed $1.95, or 7.4 percent, to $28.44 on the Nasdaq Stock Market, where XM's stock price rose $1.83, or 6.7 percent, to $28.97.
Shares of News Corp. were up 13 cents to $36.89 on the New York Stock Exchange.
www.jetblue.com
JetBlue to introduce digital satellite radio, pay-per-view movies
Tuesday January 6, 6:18 pm ET
By Brad Foss, AP Business Writer
WASHINGTON (AP) -- Through agreements with XM Satellite Radio and News Corp., low-fare carrier JetBlue Airways said Tuesday it will augment its in-flight entertainment with about 100 channels of free digital satellite radio and two pay-per-view movie channels.
The New York-based carrier, which in 2000 became the first airline to offer live satellite programming through TVs installed in every seatback, also said it would add 12 more channels of DirecTV.
JetBlue chief executive David Neeleman said in an interview that with ever more carriers matching its cheap domestic fares, it has become increasingly important to offer unique service, and that entertainment is just one way to do that.
"Frankly, I think the TVs and the entertainment are a little bit overrated and what's underrated is the whole way we do business," Neeleman said, referring to the low-cost operating strategy that makes it possible for JetBlue, Southwest Airlines and others to profit from inexpensive fares.
Separately, JetBlue on Wednesday will mount its largest-ever expansion with a goal of picking off local customers from major carriers, such as American Airlines and US Airways, as well as from the nation's largest low-fare carrier, Southwest.
For XM, the partnership with JetBlue gives it access to some 12 million listeners -- people who it hopes will one day become subscribers. The satellite radio provider, which is not profitable, currently has about 1.2 million subscribers.
News Corp., meanwhile, gains viewers to whom it can market news, sports and other programs developed by its Fox Entertainment Group subsidiary, including "The Simpsons." In addition, there will be two pay-per-view channels showing 20th Century Fox movies -- one for first-run flicks and another for classics.
The pay-per-view service will cost about $3 per movie, enough to break even, Neeleman said. Passengers will swipe credit cards through JetBlue's in-seat payment system.
Neeleman said the new entertainment options would be available on all planes by the end of the year. He would not discuss the financial details of the agreements.
On Tuesday, shares of JetBlue climbed $1.95, or 7.4 percent, to $28.44 on the Nasdaq Stock Market, where XM's stock price rose $1.83, or 6.7 percent, to $28.97.
Shares of News Corp. were up 13 cents to $36.89 on the New York Stock Exchange.
www.jetblue.com