JetBlue Airways Corp JBLU 1.51% and Amazon.com Inc AMZN 1.86% have reached an agreement that will allow passengers to stream TV, movies and music from Amazon in-flight.
In-flight Amazon Entertainment
According to Reuters, the new Amazon entertainment option will be available on a majority of JetBlue flights by the end of the year via the airline’s free Wifi, allowing passengers to access the service via their laptops and mobile devices.
All passengers will be able to rent or purchase content from Amazon’s library. Amazon Prime customers, however, will have access to much of Amazon’s content for free.
World-Class Entertainment
While competing airlines also offer Wifi to passengers, JetBlue is the only airline which offers a fast enough Wifi to allow for video streaming. “This is the most comprehensive offering of entertainment content for any airline anywhere in the world,” said Henry Harteveldt, a founder of Atmosphere Research Group.
While the details of the agreement have not been released, it’s possible that Amazon could foot part of the bill to keep JetBlue’s Wifi free. Bored passengers could be a nice revenue source for Amazon.
Soaring Stocks
Both JetBlue and Amazon have had a stellar 2015 so far in the stock market. Amazon’s stock is up 36.6 percent year-to-date, with JetBlue’s stock not far behind, gaining 35.1 percent on the year.
JetBlue has been one of the leaders in a resurgent airline industry in the past several years. In fact, JetBlue’s stock has more than tripled in price since May of 2013.
Despite the huge run-up in share price, JetBlue maintains a relatively low forward P/E ratio (11.1) and PEG ratio (0.29) when it comes to valuation.
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