Sunday, September 28, 2014

The popularity of a product is somewhat related to its price, where free is in its own universe

Norwegian Air, which gives away Internet access that cannot fulfill but a few with unlimited desires, much less everyone's, is in fact a wildly popular part of their award-winning passenger experience.

It's better to give away a modest product, than charge a premium to a select few.

Let that sink in.

A great system can do both.  

JetBlue, Live TV and ViaSat have combined to offer a terrific product that is just that.  No one else has the option for personal streaming.

The heavy lifting to support a single one Mbps streaming experience (450 MBytes per hour) is justifiably a chargeable service.  This is a tough proposition for any service provider; offering it at all is quite a feat.

High performing bursts serve thin browsing and messaging, accumulating just a few MBytes per hour, is where we have some differentiation (JetBlue free so far,  Gogo and GEE charging).

The third tier is connected applications, notably streaming from a local cache and text messaging, a service that everyone should be giving away.  The upside is on promotion, advertising and customer satisfaction.  GEE Dish TV, United and Delta WiFi streaming, and Gogo T-Mobile tie-ups are examples of the beginning of this opportunity for a happy and profitable, symbiotic relationship between passenger, airline/provider, and interested third parties.

An associate relays a story from a summer journey that included a leg on Norwegian, for their first time.  His two teenagers commented upon landing, "can we always fly Norwegian?".

Do JetBlue shareholders think the best course of action is to stop giving away the Internet, to which apparently the CEO is falling out of favor...take a look at the link below for more info.

The ever present short term views brought on by next quarter earnings and today's share price rise again.  Our business culture keeps losing its way from what builds true value in the eyes of the customer.  

Win win.  

Not lose, win.

Peter Lemme

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