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9 December 2009

FLO TV opens purse to drag in top Disney content

Qualcomm subsidiary FLO TV, has reached into its coffers and bought rights to critical Disney content which may finally begin to attract viewers to its MediaFLO network in the US.

The new offerings are a simulcast Disney channel, bolstered by some original Disney Movies, plus ABC Mobile. This means that Grey’s Anatomy, Desperate Housewives, FlashForward, Ugly Betty, Lost, Hannah Montana and Wizards of Waverly Place will all be live on the FLO TV service.

Just to be clear, right now we think this content is only for Qualcomm’s direct to consumer service FLO TV, and it’s not available (as yet) on the AT&T or Verizon Vcast TV services, where they resell access to the MediaFLO broadcast network, which is set up now across many of the major US TV markets, reaching about two thirds of Americans.

We’ve been waiting for some time for a move like this from FLO TV, ever since Qualcomm told us over a year ago that it couldn’t get any better content unless it was prepared to pay some up-front costs for it, and assured us that once its network was fully extended and powered up, after analog switch-off, it would take on the cost. On the surface this is still not enough to make the service an out and out hit, and it still needs to lower device prices and get yet more content.

At the same time a number of the mobile channels that it already carries, including ESPN Mobile, are themselves seeing more value in showing better and more frequently live sports content, so the content quality is rising in other ways too.

“We are excited to expand our relationship with FLO TV and now offer a comprehensive array of world-class programming to their subscribers,” said Matt Murphy, senior vice president, digital video distribution, Disney and ESPN Media Networks. “We are dedicated to connecting viewers to the content they want and brands they love on the platforms they choose and are pleased that in addition to having access to high-quality, popular sports programming from ESPN, users of the FLO TV service will now be able to see their favorite shows from ABC and Disney Channel.”

We would expect AT&T and Verizon to take the new channels in return for promising to promote MediaFLO technology more aggressively and for at least 3 or 4 more new channels to be signed up in the coming months.

FLO TV has gone on record promising it will have 10 million devices deployed by the end of next year, and the offering is going to have to be pretty compelling to make that even a possibility.

FLO TV can be watched on the new FLO TV Personal Television and in-car using the FLO TV Auto Entertainment system launched with Audiovox.