Qualcomm’s bold experiment of building a mobile TV network in the US from the ground up can officially be called a failure with the suspension of sales of its FLO TV Personal TV standalone device.
The San Diego-based chipmaker said on Tuesday it expected to maintain the network till next spring for existing subscribers and there would be refunds in the event of its closure. Some layoffs are also anticipated in the near future.
FLO TV will continue as a service on AT&T and Verizon handsets for the time being, but it seems only a matter of time before Qualcomm pulls the plug or disposes of FLO.
The company had invested $800m initially in setting up a nationwide broadcast network and recruiting content partners to provide a multi-channel television service powered by its mobile phone chips.
Its FLO TV Personal TV, built by HTC, was a TV with a 3.5-inch screen, costing $150 and then a $15 a month subscription for its channels.
While the lineup was impressive, with channels from the major networks and cable channels such as ESPN sports, CNBC financial news and MTV music, Paul Jacobs, Qualcomm chief executive, said not nearly enough people were watching.
Live sports did appear to be popular and there was a spike during the World Cup, but Qualcomm announced in July it was exploring other options for the service.
This was continuing, it said on Tuesday:
“We have been engaging in conversations with a wide range of partners for both the network and the spectrum. We are seeing strong interest in using the FLO TV network or spectrum to capitalise on the growing imbalance between mobile data supply and demand, the growth of tablets, and consumer demand for high quality video and print content, and a richer user experience.”
Consumers do seem to want to watch video content on the go, but more in bite-sized pieces and less in the standard channel format of FLO TV. With smartphones, technology like FLO TV is becoming unnecessary – regular mobile browsers can now play video on demand and stream live TV, often for free.
FLO TV would have stood a better chance if it offered features unavailable elsewhere, such as high-definition and DVR capabilities. It also lacked local programming, something the Open Mobile Video Coalition is eventually planning to provide.
FLO TV’s main competitor on handsets is MobiTV, which insisted on Tuesday that its business was strong:
“We are integrated with every major carrier in North America, every major handset manufacturer and every major content partner. World-class companies depend on the operational reliability of the MobiTV Accelerated Media Platform to deliver content to over 13m managed subscribers. We’ve proven the market in mobile,” it said in a statement.
Mobile TV programming may also have a future in cars, where Qualcomm has partnered with Audiovox, although it has faced competition from satellite operators.
But in terms of a dedicated device for watching mobile television, the FLO TV Personal TV is heading to the gadget recycling centre.
