Qualcomm’s FLO TV Gains Major Distribution Through In-Car Entertainment Systems
Qualcomm’s FLO TV has revealed the details of its partnership with Audiovox, which will resell its broadcast TV services to in-car entertainment systems for as little as $9 a month.
SEE ALSO: FLO TV To Cut Prices To Boost Mobile TV Usage
The deal marks the first reseller agreement outside of the company’s long-standing contracts with AT&T (NYSE: T) and Verizon Wireless (NYSE: VZ), whose subscribers pay around $15 a month for live TV on their phones. Bill Stone, FLO TV’s president said: “Our collaboration with Audiovox demonstrates FLO TV’s market expansion beyond mobile phones to deliver innovative live TV service to consumers.”
While FLO’s partnership with Audiovox was announced earlier this year, details haven’t been released until now as they get closer to a fourth-quarter launch. Stone has been clear in outlining the company’s path to market. First, it must prove the product, then it must build out the service in as many markets as possible, and then it can start to sell and market the product more aggressively. FLO TV will gain a tremendous amount of distribution with the Audiovox deal, including 12,000 new car dealers in 85 markets and access to 23 million vehicles that can be upgraded to receive FLO TV.
By the end of the year, FLO says its goal is to cover 100 major markets and more than 200 million potential customers nationwide. While clearly that does give the service some scale, users will not be able to watch TV continuously on a cross-country road trip.
Initially, the service will be offered as a one-year subscription with the hardware purchase. Annual plans will start at special introductory rates as low as $119 a year or 3-year plans starting at $299.
Boosting revenues for the Qualcomm (NSDQ: QCOM) division will be important. While Qualcomm does not break out FLO TV results separately, it does report results for the QSI segment, which mainly consists of the FLO TV subsidiary. QSI consistently reports a quarterly loss and high operating expenses as the company continues to expand the network’s footprint. In July, the company said the QSI unit recorded $9 million in revenues for the third quarter, which represents a 125 percent increase over the year-ago period.
Posted In: Media & Publishing, TV, Broadcast, Mobile, Companies, Qualcomm

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