The best way to start or end any vacation is to relax on a long flight to your destination. Often times we hope that the airline has a good in-flight movie because this is a leisure trip and our laptops should be at home. But who wants to watch a movie you’ve already seen or miss the good part because a trip to the bathroom was necessary? Fortunately for us airlines are now utilizing companies like e.Digital which offers On Demand Services.
e.Digital Corporation provides secure portable video and audio On Demand products to the airline industry, as well as in the healthcare, military, and other travel and leisure markets. The company generates revenue through its eVU ™ Portable Entertainment System, which is sold directly to the airline industry through their value-added resellers program. They also generate revenues through the e.Digital’s Flash-R™ patent portfolio which is used in today’s portable electronic products; including the company’s own product, the eVU™.
With its eVU™ sales and services, e.Digital is one of the leading producers of dedicated portable in flight entertainment. eVU™ is the smallest and lightest dedicated long play portable in flight entertainment product available today and integrates the latest in battery safety features through its removable “Smart” rechargeable high capacity battery pack. The system allows passengers to select video on demand entertainment. Currently, there are thirteen airlines that have made this portable system their in-flight entertainment choice through new and follow-on orders including Air France (EPA:AF), Alitalia (BIT:AZA), Lufthansa (DLAKY.OB), and Malaysia(KUL:MAS). This technology provides significant advantages over consumer-based and PC-based devices including: twenty plus hours of battery life, superior digital video and audio quality, and the ability to easily customize and update content.
e.Digital has found a great target market as companies like American Airlines (NYSE:AMR) is currently transitioning from analog tape based systems to audio and video On Demand digital systems. Delta Airlines (NYSE:DAL) has recently added a new Delta on Demand product where passengers can choose from several HBO movies, series, and specials, as well as network shows, and Continental Airlines(NYSE:CAL) is offering Private Screening in its Business First cabin.
e.Digital Corporation is a 20 year old company led by a group of talented staff and engineers who have pioneered many developments in the portable electronics industry including Will Blakeley, e.Digital President and Chief Technical Officer, who has a career spanning over 27 years in the engineering industry. He is well versed in multiple disciplines with significant experience in managing large engineering teams, contracts, manufacturing, marketing and finance.
The company plans to grow their portable in flight entertainment business in 2008. Major airlines have encouraged the company to apply their core technology to a simple, lightweight, flexible embedded solution providing individualized on-demand entertainment. The company is making progress in this task and has initiated the design and adaptation of their eVU™ technology into an embedded system. An embedded eVU™ system would offer substantial product and weight/fuel cost savings as well as open the door to fleet-size eVU™ orders.
e.Digital faces competition in the in-flight entertainment industry from portable DVD hardware manufactures who may sell products to travelers specifically targeted for airline use, but the company believes that their existing know-how, patents, and trade secrets will be significant in enabling them to compete successfully in the field of portable digital entertainment products and systems.
eDigital has started off the year right by reporting strong revenues (they reported revenues of $4.98 million for the first nine months of fiscal 2008 compared to $1.34 million for the same nine-month period the prior year, a 272% increase.), but it’s important to mention that they have not signed on with any of the major airlines. If the company can sign one or more of the major airlines by meeting product specific requests or signing an embedded in-flight entertainment contract with either Boeing (NYSE:BA) or Airbus, they may reach their goal for this year and continue to be a company to watch.
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