FLO TV Goes Mobile

Qualcomm’s (QCOM - Analyst Report) wholly owned subsidiary FLO TV Inc. recently decided to tap the market for live mobile TV in-vehicles. Together with its partner Audiovox Corp. (VOXX - Snapshot Report), the unit will distribute multicast mobile TV service to more than 12,000 new car dealers across 85 markets in the U.S.

The service, FLO TV Auto Entertainment, will be marketed under Audiovox’s exclusive Advent brand. The service will be launched during the fourth quarter of 2009 and feature more than a dozen live channels from major broadcast stations. This system can be supported by all cars and will be priced at $199 for one year and $299 for three years.

Currently, FLO TV service is offered by the two largest telecom operators in the U.S., AT&T (T - Analyst Report) and Verizon Wireless (VZ - Analyst Report). However, Qualcomm has decided to augment its wholesale strategy with a direct-to-consumer offering. It will initially target two markets: (1) in-car entertainment system with embedded and standalone FLO receivers, (2) mobile devices market in which FLO TV contents can be delivered into a WiFi enabled media gadget through modem accessory.

The market for live mobile TV is growing rapidly and there are already about 23 million cars in the U.S. are equipped with a variety of mobile video entertainment systems.

FLO TV’s automotive venture with Audiovoxx will put the company in direct competition with its carrier partner AT&T that offers CruiseCast in-vehicle satellite TV service with RaySat Broadcasting. FLO TV’s in-vehicle mobile service is a major move to bypass the wireless carriers to establish its own brand.

Last August, the company signed an agreement with Rentrak Corp. (RENT - Snapshot Report) to launch the industry’s first comprehensive viewership rating and advertising impression reporting system. FLO TV currently reaches 85 markets. It aims to provide multicast mobile TV service in the top 100 US markets, covering 200 million subscribers by the end of 2009.

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