FLO TV at an End?

Citing low subscriber growth during the first three years of operations, Qualcomm is said to be looking closely at options for its FLO TV division. Those options may include selling the division outright, selling the spectrum or finding a partner that can modify the business and take it in a new direction.

Qualcomm reportedly invested $683 million to acquire the wireless spectrum necessary to provide the FLO TV service.  FLO TV provides ESPN, ABC, CNN, CBS and Comedy Central among the approximately 20 live channels carried.  It is not a nationwide service, though it is available in most major cities around the country.

FLO TV was advertised during the Super bowl and the NCAA Men’s Basketball Tournament, but it has not attracted a sustaining subscriber base.  The personal TV device sells for about $150, and the monthly subscription is in the $10-$15 range.  FLO TV is the underlying service for both Verizon and AT&T mobile TV offerings available as part of each company’s cell phone service.

According to information provided by the company, Qualcomm is also considering combining existing content from electronic magazines and newspapers along with non-traditional content, working with software developers on applications that would expand the user experience.

Adding options to the television content may be an alternative, I question whether most consumers are willing to pay more per month to have a mobile TV service.  Several existing television services will have mobile television available as part of the regular service fee. There may well be a use for the FLO TV technology and bandwidth, but it is likely content other than traditional television.

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