Providing in-flight entertainment will take a small cut from Delta however the price make-up will come in the form of something else. Delta will need a slight fare boost or increased baggage charges, by pennies to make up for the cost. Providing in -flight entertainment is a brilliant move in a competitive fare market. The extra customer base it will earn them should help them emerge ahead of most when all is said and done.
Honestly today people pay way too much to fly that even with gas prices its cheaper to drive across the country rather than fly there. In some cases its more of a bargain to fly overseas than to fly domestically. How much could an airline possibly lose by showing less recent movies on a flight. With one DVD costing no more than $25 that allows over 100 passengers to view it, then its less than giving each passenger a pack of peanuts and a free drink during the flight. To say a company would lose money by providing a free in flight movie is a bit greedy.
Delta is a large enough company that can buy rights to films without breaking the bank. In addition, people will be more inclined to book flights with Delta because entertainment options such as in-flight movies will help them relax and not think about the flight itself. It will also help Delta in getting people to shut down their electronic equipment.
No they will gain because people want something for what they are spending for the airline tickets. They have taken away the free bag of nuts, the free can of soda. So you have to give something in order to remain competitive in this market of industry. People want something for the price they are spending.