By not installing some sort of IFE on the MD-80s either when they were purchased or when huge profits were rolling in, AA painted itself into a corner.
Of course now it's too late to think about spending tons of money to wire all the MD-80s to provide IFE.
B6 offers inflight TV at every seat. Initially, B6 planned to charge for it ($5 IIRC), but abandoned that plan - it's free for everyone. And even if AA wired its entire fleet for B6-style DirecTV, B6 bought the company - no way would AA pay B6 for the programming.
Some "experts" think that AA is at a disadvantage because so much of its fleet lacks IFE. A bunch of other "experts" see AA's decision to offer personal IFE devices on an ala carte basis as a massive waste of time, energy and money.
Renting personal IFE for $10 per flight looks to me like a possible massive waste of time, energy and money. But maybe I'm wrong.
I fly a lot - and on shorter flights (like typical MD-80 flights), the lack of IFE isn't an issue. For 20 years now I have flown with a portable CD player, and it is a very easy way to pass the time while reading. The addition of BOSE QCs several years ago made it possible to really drown out the unwanted sounds.
For longer flights, a portable DVD player (or DVD-equipped laptop) provides excellent IFE, without any of hassles that I predict will come from AA's test of AA-provided personal IFE devices. And the recent decline in price for portable DVD players (Target has several in the $200-$300 range) puts them within reach of nearly everyone who can afford an airline ticket. With a headphone splitter, 2 people can easily watch a movie of their choice.
I feel for the decision-makers at AA. Some people are telling them that AA can't compete without IFE, so they are going to test what they can afford.
Meanwhile, WN keeps chugging along, posting impressive traffic numbers for September, without IFE or food or assigned seats.
IMO, the best thing AA could do is to wire more in-seat power to more coach seats. Be it the 15 volt DC or perhaps 110 volt as Northwest is doing at every WBC seat on its new A330s:
http://biz.yahoo.com/prnews/041001/cgf026_1.html
Of course, wouldn't you know, NW also has a an on-demand personal IFE at every seat on these new planes.