4 ms·

I propose a 4th reason why they merged with Xhibit: the owners of SkyMall realized that with WiFi becoming more and more prominent on flights, bored traveler ar

by draz 13y ago

I propose a 4th reason why they merged with Xhibit: the owners of SkyMall realized that with WiFi becoming more and more prominent on flights, bored traveler are less and less likely to flip through their magazines, but instead get online (where they'd have their own set of advertisements, shopping capabilities, etc). I think, therefore, it was the right move to cash out before companies themselves pull out of their agreements with SkyMall.

UnoriginalGuy 13y ago
I think you're massively overstating how common WiFi is. First off it only exists over certain land areas, and secondly it is so costly on most flights few are paying for it ($35 for a 60 minute flight? Uhh no thanks). Plus you'd still read Skymall during takeoff/landing where electronic devices are banned.
- jmathai 13y ago
  I think you're massively underestimating the future trend. More flights will have wifi for cheaper. Not less for more money. Sure, from the looks of today it might not seem like a big disruption for SkyMall but it will. On most flights I go on I'd say about 10-20% of the folks have a tablet device. That trend will also go up and continue to decrease the effectiveness of SkyMall.
  - throwaway1979 13y ago
    On what basis do you claim that "most flights will have wifi for cheaper"? There really isn't much competition when you are at 10,000 feet. Also, if airlines wanted to differentiate themselves based on quality, they had ample opportunity to do so. From my understanding, for coach seats in the US, airlines compete solely based on price.
    - marvin 13y ago
      European low-cost airline Norwegian currently has free wi-fi on all their European flights. I'm pretty sure this trend will continue - it's a relatively inexpensive way for airlines to differentiate themselves from their competition.
    - jmathai 13y ago
      I doubt wifi will get more expensive or be less common on airplanes in 4 years. But sure, assume it will. SkyMall would still have to compete with tablets that passengers carry. I can't site a research paper to back this up though.
  - throwaway9848 13y ago
    Great thought. That's why SkyMall (profitable, $100M+ revenue) should merge with an unprofitable reverse-merger OTC trading company that is unprofitable with $10M trailing revenue on 40/60 terms. Instead of doing that, maybe they could have hired technical staff and built a mobile app themselves?
    - draz 13y ago
      I actually thought of that, but I realized that BoingBoing (and the like) beat them to it but being the gatekeeper to the internet. From last I've seen, they have their own shopping portal (and Amazon was access was complimentary). Why would I go out of my way to download the SkyMall app? What value would it give me?
      - jmathai 13y ago
        The only way I see that working is if the airline somehow made it possible to install the SkyMall app and use it. Providing the app exclusive access to communicate back down to earth. I know it's possible because the last flight I was on did it for Ebay. You could surf Ebay for free without having to pay for Wifi. I wouldn't be on this approach working for SkyMall though.
- 27182818284 13y ago
  Well it doesn't have to be 100% right now for people to be able to read the writing on the wall, right? They can look at trends and see Wifi adoption going up and legitimately worry about it even though not a lot of flights today have Wifi.
- JumpCrisscross 13y ago
  The people likely to pay for WiFi are also likely to be valuable Skymall customers. E.g. I always buy WiFi on domestic flights and haven't touched an issue of Skymall in years. I have, however, made Amazon purchases while flying.
- moistgorilla 13y ago
  On delta I've been paying around 5 dollars for flight long wifi
- rhizome 13y ago
  Next time you're on a flight, scroll down on the wifi rates. I noticed that the top option was something like you mention, $35 or whatever per day. However, a few packages below the "per day" rate was a "duration of the flight" rate that was somewhat cheaper, like half or less.
- ecspike 13y ago
  On many of the airlines that have Wifi, Delta has it on most of their mainline fleet, also have free ebay or amazon even if you don't get the wifi. The cost is closer to $12-15 for a long haul and as little as $5-7 for a mobile device or shorthaul or with a coupon pack.
- jthol 13y ago
  from http://www.southwest.com/wifi/ http://www.southwest.com/wifi/ > Internet access will be available for $8 all day, per device and will be displayed once you launch your internet browser and connect above 10,000 feet*. This trend will continue and expand.
- mikeash 13y ago
  Satellite-based global coverage is becoming a reality. Lufthansa, for example, has coverage on some transatlantic flights. United is currently in the process of installing WiFi on every flight, including over-water flights.
cstross 13y ago
It's not just wifi on flights: if these reports are correct, the FAA is considering relaxing restrictions on electronics during take-off and landing: http://arstechnica.com/tech-policy/2013/06/stow-it-no-more-faa-easing-ban-on-electronics-during-takeoff-landing/ http://arstechnica.com/tech-policy/2013/06/stow-it-no-more-f... If this happens, then SkyMall's market just disintegrated like a wet telephone book -- they're competing with Amazon et al from boarding to arrival at the destination gate. Even without in-flight wifi, travelers who forgot to pack a book or magazine are no longer going to be a captive audience, so that 70% eyeball share will crash.
- larrys 13y ago
  "they're competing with Amazon et al" The product that skymall is selling is entertainment. The value of being able to leaf through a magazine and see some interesting products. And maybe buy something you would never think of. Just like HN is a venue to read things you might not come across in your own browsing. Skymall pushes product into easy viewing site because they are a printed magazine right at your fingertips. Now of course you can do that online but you are in a confined space and a captive audience and that magazine has appeal plain and simple no matter what you can take a look at online. And of course you have plenty of entertainment on your tablet or laptop. But this is in a different format and it deserves at least a look. Let me make up an outlandish example. You have hotel wifi and a tablet in your private hotel room. You then spot a magazine of pornographic pictures in a drawer and that type of stuff turns you on (as it does most men, right?). Even if you can view the porn online you are still going to leaf through the magazine because it's easy to do and just "take a look" for the entertainment value. (That's quite different from actually buying the same magazine in the store in the hotel).
  - pubby 13y ago
    >The product that skymall is selling is entertainment. Their advantage over amazon may be the entertainment value, but it seems improper to say they're "selling entertainment" when realistically they're selling ads. I don't see the connection to porno magazines since they're completely different business models.
jarrett 13y ago
As the owners of SkyMall, how would you cash out on this deal? As I understand it, Xhibit didn't pay cash for SkyMall. I take this to be a stock-for-stock merger. So the owners of SkyMall end up with a stake in Xhibit but not cash. You might argue that the SkyMall people could sell their stock now. But if Xhibit is as much of s sham as the authors say, then it's going to be hard or impossible to cash out at a good price. Once you start selling the shares of an artificially inflated company, the price falls fast. You might unload a few at a high price, but just a few.
jsight 13y ago
I've been on flights where inflight wifi was $$, but inflight WiFi access to Skymall was free. I don't think the growing availability of Wifi will hurt them among the type of people who buy their overpriced (and often useless) merchandise.

by draz 13y ago

UnoriginalGuy 13y ago

I think you're massively overstating how common WiFi is. First off it only exists over certain land areas, and secondly it is so costly on most flights few are paying for it ($35 for a 60 minute flight? Uhh no thanks). Plus you'd still read Skymall during takeoff/landing where electronic devices are banned.

jmathai 13y ago
I think you're massively underestimating the future trend. More flights will have wifi for cheaper. Not less for more money. Sure, from the looks of today it might not seem like a big disruption for SkyMall but it will. On most flights I go on I'd say about 10-20% of the folks have a tablet device. That trend will also go up and continue to decrease the effectiveness of SkyMall.
- throwaway1979 13y ago
  On what basis do you claim that "most flights will have wifi for cheaper"? There really isn't much competition when you are at 10,000 feet. Also, if airlines wanted to differentiate themselves based on quality, they had ample opportunity to do so. From my understanding, for coach seats in the US, airlines compete solely based on price.
  - marvin 13y ago
    European low-cost airline Norwegian currently has free wi-fi on all their European flights. I'm pretty sure this trend will continue - it's a relatively inexpensive way for airlines to differentiate themselves from their competition.
  - jmathai 13y ago
    I doubt wifi will get more expensive or be less common on airplanes in 4 years. But sure, assume it will. SkyMall would still have to compete with tablets that passengers carry. I can't site a research paper to back this up though.
- throwaway9848 13y ago
  Great thought. That's why SkyMall (profitable, $100M+ revenue) should merge with an unprofitable reverse-merger OTC trading company that is unprofitable with $10M trailing revenue on 40/60 terms. Instead of doing that, maybe they could have hired technical staff and built a mobile app themselves?
  - draz 13y ago
    I actually thought of that, but I realized that BoingBoing (and the like) beat them to it but being the gatekeeper to the internet. From last I've seen, they have their own shopping portal (and Amazon was access was complimentary). Why would I go out of my way to download the SkyMall app? What value would it give me?
    - jmathai 13y ago
      The only way I see that working is if the airline somehow made it possible to install the SkyMall app and use it. Providing the app exclusive access to communicate back down to earth. I know it's possible because the last flight I was on did it for Ebay. You could surf Ebay for free without having to pay for Wifi. I wouldn't be on this approach working for SkyMall though.
27182818284 13y ago
Well it doesn't have to be 100% right now for people to be able to read the writing on the wall, right? They can look at trends and see Wifi adoption going up and legitimately worry about it even though not a lot of flights today have Wifi.
JumpCrisscross 13y ago
The people likely to pay for WiFi are also likely to be valuable Skymall customers. E.g. I always buy WiFi on domestic flights and haven't touched an issue of Skymall in years. I have, however, made Amazon purchases while flying.
moistgorilla 13y ago
On delta I've been paying around 5 dollars for flight long wifi
rhizome 13y ago
Next time you're on a flight, scroll down on the wifi rates. I noticed that the top option was something like you mention, $35 or whatever per day. However, a few packages below the "per day" rate was a "duration of the flight" rate that was somewhat cheaper, like half or less.
ecspike 13y ago
On many of the airlines that have Wifi, Delta has it on most of their mainline fleet, also have free ebay or amazon even if you don't get the wifi. The cost is closer to $12-15 for a long haul and as little as $5-7 for a mobile device or shorthaul or with a coupon pack.
jthol 13y ago
from http://www.southwest.com/wifi/ http://www.southwest.com/wifi/ > Internet access will be available for $8 all day, per device and will be displayed once you launch your internet browser and connect above 10,000 feet*. This trend will continue and expand.
mikeash 13y ago
Satellite-based global coverage is becoming a reality. Lufthansa, for example, has coverage on some transatlantic flights. United is currently in the process of installing WiFi on every flight, including over-water flights.

cstross 13y ago

It's not just wifi on flights: if these reports are correct, the FAA is considering relaxing restrictions on electronics during take-off and landing: http://arstechnica.com/tech-policy/2013/06/stow-it-no-more-faa-easing-ban-on-electronics-during-takeoff-landing/ http://arstechnica.com/tech-policy/2013/06/stow-it-no-more-f... If this happens, then SkyMall's market just disintegrated like a wet telephone book -- they're competing with Amazon et al from boarding to arrival at the destination gate. Even without in-flight wifi, travelers who forgot to pack a book or magazine are no longer going to be a captive audience, so that 70% eyeball share will crash.

larrys 13y ago
"they're competing with Amazon et al" The product that skymall is selling is entertainment. The value of being able to leaf through a magazine and see some interesting products. And maybe buy something you would never think of. Just like HN is a venue to read things you might not come across in your own browsing. Skymall pushes product into easy viewing site because they are a printed magazine right at your fingertips. Now of course you can do that online but you are in a confined space and a captive audience and that magazine has appeal plain and simple no matter what you can take a look at online. And of course you have plenty of entertainment on your tablet or laptop. But this is in a different format and it deserves at least a look. Let me make up an outlandish example. You have hotel wifi and a tablet in your private hotel room. You then spot a magazine of pornographic pictures in a drawer and that type of stuff turns you on (as it does most men, right?). Even if you can view the porn online you are still going to leaf through the magazine because it's easy to do and just "take a look" for the entertainment value. (That's quite different from actually buying the same magazine in the store in the hotel).
- pubby 13y ago
  >The product that skymall is selling is entertainment. Their advantage over amazon may be the entertainment value, but it seems improper to say they're "selling entertainment" when realistically they're selling ads. I don't see the connection to porno magazines since they're completely different business models.

jarrett 13y ago

As the owners of SkyMall, how would you cash out on this deal? As I understand it, Xhibit didn't pay cash for SkyMall. I take this to be a stock-for-stock merger. So the owners of SkyMall end up with a stake in Xhibit but not cash. You might argue that the SkyMall people could sell their stock now. But if Xhibit is as much of s sham as the authors say, then it's going to be hard or impossible to cash out at a good price. Once you start selling the shares of an artificially inflated company, the price falls fast. You might unload a few at a high price, but just a few.

jsight 13y ago

I've been on flights where inflight wifi was $$, but inflight WiFi access to Skymall was free. I don't think the growing availability of Wifi will hurt them among the type of people who buy their overpriced (and often useless) merchandise.