FLO TV Inc, a wholly-owned subsidiary of Qualcomm Inc. (QCOM), has decided to enhance its mobile TV services by adding new applications. The new interactive features will integrate live video with net-centric on-demand content and social media tools. At present, the FLO-TV service has been offered by the two largest telecom operators in the U.S., AT&T (T) and Verizon Communications Inc. (VZ) and is available to more than 200 million consumers in more than 100 markets.
 
The service enhancement of FLO TV will include three new applications: (1) the video-recording feature will enable viewers to store TV shows on FLO TV-enabled mobile devices and the DVR time-shift feature will allow users to watch programs even if they’re outside of the FLO TV coverage area. (2) Paying by the day instead of monthly – viewers will no longer be required to purchase a monthly package of $10 – $15. Instead they can buy services day-by-day. (3) New interactive software will enable viewers to get more information about a show or buy any advertised product.
 
As of now, both AT& T and Verizon offer two mobile phones each that support FLO TV broadcast.  Management has decided to initially target two markets: (1) in-car entertainment system with embedded and stand-alone FLO receivers (2) mobile devices market in which FLO TV content can be delivered to a WiFi enabled media device through a modem accessory. Audiovox Corp. (VOXX) offers an in-car media system that can receive FLO TV.
 
Last August, FLO TV entered into an agreement with Rentrak Corp. (RENT) to launch the industry’s first comprehensive viewership rating and advertising impression reporting system. The market for live mobile TV is growing rapidly. In June 2009, the mobile TV industry received a shot in the arm when the U.S. government decided to switch to fully digital TV transmission from analog TV transmission. According to various industry researches, the market size for mobile TV may reach $10 billion by 2013 from $1.5 billion in 2008.
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