& cplSiteName &

Aereo Preps San Antonio, Hits Capacity in NYC

Mari Silbey
2/3/2014
50%
50%

Call it a good news/bad news situation. Over-the-top video provider Aereo has announced plans to launch its service in the Greater San Antonio region on February 19, but is has put a halt to its customer expansion plans in New York City -- at least for now.

The upcoming launch will cover 2.2 million consumers in 22 counties across Texas, with potential customers able to pre-register now.

For those wanting the sign up for the service in New York City, though, the wait will be longer, as Aereo has officially run out of capacity in New York City and says it won't add any new customers in the region until it can remedy the situation.

Following a story on DSLReports, Aereo Inc. 's CEO Chet Kanojia confirmed the problem on Twitter, noting: "Yes we are sold out. Will reopen as we get more capacity deployed."

New York was the first market to go live when Aereo launched its controversial cord-cutting TV service nearly two years ago. The company collects over-the-air television signals and streams them back to customers over the Internet. While the company doesn't disclose its subscriber numbers, The Wall Street Journal (subscription required) reported in October that it had signed up between 90,000 and 135,000 customers in the New York metro area. Aereo is also deployed in ten other markets, and plans to launch in four more cities this month.

The Journal also shined a light last fall on the electricity challenges Aereo faces in powering thousands of tiny TV antennas. However, a spokesperson confirmed to DSLReports that electricity is not a factor in the decision to stop accepting new customers in New York. According to the company representative, the current situation is "strictly a capacity issue… We've had strong growth, so we're working to add more capacity to serve more consumers."

Aereo's capacity woes come as the company gears up to defend itself in front of the Supreme Court this spring. Aereo will face off against broadcasters who claim it is breaking the law by not paying retransmission fees for television content. Aereo's Kanojia, however, argues that not only is the company not skirting the law, but that its battle is really with pay-TV providers that want to protect their cable bundles, rather than with broadcast networks. (See Aereo CEO Trashes Pay-TV Model.)

Said Kanojia last month: "I don't think there's a whole lot of business in selling 500-channel packages of video services to people who don't want them… I don't think the future is selling 50 Viacom channels to people."

On the positive side for Aereo, the company raised another $34 million in January, which brings its funding total close to $100 million. Perhaps it can use that extra cash for some capacity upgrades. (See Aereo Plans Faster Growth Amid Legal Drama.)

— Mari Silbey, special to Light Reading

(19)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
2/12/2014 | 1:23:14 PM
Re: Myhui
Myhui, I believe I have somewhat said that in my many rambling posts on a few Aereo articles. I mentioned capacity regarding hardware, real estate, power, bandwidth, opportunity to oversubscribe, redudant reception centers, etc. 
myhui
50%
50%
myhui,
User Rank: Moderator
2/10/2014 | 5:34:56 PM
Re: Myhui
This whole idea from Aereo simply doesn't scale cheaply, so I am surprised no one has pointed it out so far.
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
2/5/2014 | 2:16:13 PM
Re: Myhui
Okay, the bullet points said "we" which led me to believe you were somehow associated with Aereo. 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
2/5/2014 | 11:35:28 AM
Re: Myhui
 

No, I don't work for Aereo.  Easily stated argument.

seven

 
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
2/5/2014 | 10:52:33 AM
Re: Myhui
So Brookseven works for Aereo?
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
2/5/2014 | 10:51:27 AM
Re: Myhui
Because you can still get around the legalities legalities of the retransmit consent by only allowing one user to use a single physical antenna at one time. When you take one antenna and receive the signal and then retransmit to more than one user at the SAME TIME, you are essentially doing what the Cable Companies do. The challenge is not to oversubscribe too much that you deny a paying user access to a stream if they are all being used during a popular event. 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
2/5/2014 | 10:49:37 AM
Re: Myhui
Myhui,

The whole point of Aereo from a legal standpoint is:

1 - Users can hook up their own OTA antennas and receive signals for free.

2 - We are simply placing these antennas in a more convenient location and renting the space.

3 - Since the customer is receiving the signal on his own antenna there is no difference between what a customer can do and what we do.

4 - In essence you can think of us as a really long and complicated cable between your antenna and your TV.

It is the ownership and replication of your personal antenna that is the crux of the argument.

seven

 
myhui
50%
50%
myhui,
User Rank: Moderator
2/5/2014 | 10:38:08 AM
Re: Myhui
Then why not oversubscribe to the one UHF antenna pointing to Mount Wilson serving every user that wants to see any terrestrial broadcast for the Los Angeles metro market?
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
2/5/2014 | 9:57:35 AM
Re: Myhui
Do you think that each antenna can be used by multiple users (one at a time)? Meaning they don't "own" their own, but they simply "rent" that antenna during use? This would allow them to oversubscribe the box which makes much more sense. 
myhui
50%
50%
myhui,
User Rank: Moderator
2/5/2014 | 12:54:55 AM
Re: Myhui
Routers and associated protocols have handled multicast for many, many years. I'm sure that's the only way their business can scale. Otherwise how can it possibly scale with each subscriber needing their own feed, and on top of that, needing their own physical piece of hardware to generate this feed?

Back in the old days in Silicon Valley, and even now, the #1 test any idea must get past is: "will it scale"?
Page 1 / 2   >   >>
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (0) comments


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
LRTV Custom TV
Mastercard: Payment From Every Device

3|21|17   |   5:55   |   (0) comments


A world where everything and everyone is connected creates new points of interaction for commerce. These digital experiences cannot be developed in isolation and instead require an ecosystem to drive mass consumer and enterprise adoption and create better consumer engagement. Predicting when that growth will happen is difficult, but always keeping the end user in ...
LRTV Interviews
InterDigital's Role in the 5G, IoT Era

3|21|17   |   05:47   |   (0) comments


Alan Carlton, managing director and VP for Europe at InterDigital, talks about the company's role in 5G projects in Europe and the prospects for the company in the IoT market.
LRTV Interviews
Lessons Learned From Digital Transformation

3|21|17   |   05:51   |   (0) comments


Ravi Palepu, global head of Telco Solutions at Virtusa, talks about some key takeaways from telco digital transformation experiences during the past couple of years.
Women in Comms Introduction Videos
NetNumber's CMO Shares Her Diversity Do's

3|21|17   |   3:19   |   (2) comments


The telecom industry is transforming the world, and diversity plays a critical role in driving the innovation behind it. NetNumber CMO Kim Gibbons shares why diversity and being authentic is a do amidst all the don'ts women in comms often hear.
LRTV Custom TV
Software-Driven Architecture for 5G & IOT

3|20|17   |   1:56   |   (0) comments


We present Heavy Reading's Jim Hodges's report from Mobile World Congress -- where operators and vendors are working to bring a variety of technologies together to make virtualization a reality in the era of 5G and IoT.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: Italy First Pasta the Post for 5G
Paul Rainford, Assistant Editor, Europe, 3/17/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
5G Faces a Marathon, Not a Sprint
Iain Morris, News Editor, 3/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.