& cplSiteName &

Aereo Sets 22-City Expansion

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
1/8/2013
50%
50%

Aereo Inc. has raised a $38 million second round that will help extend its broadband TV/cloud DVR combo into 22 more markets this year, theoretically reaching 97 million Americans.

Aereo has raised $63 million so far. The second round was led by IAC/InterActiveCorp and Highland Capital Partners.

Today Aereo only offers service in New York City, but the expansion will get under way this spring, Aereo CEO and founder Chet Kanojia said Tuesday during a Citibank conference in Las Vegas held alongside the Consumer Electronics Show.

Here are the cities Aereo is targeting for its first expansion phase: Minneapolis; Madison, Wis.; Cleveland; Providence, R.I.; Boston; Philadelphia and Pittsburgh, Pa.; Chicago; Salt Lake City; Denver; Kansas City; Baltimore; Washington, D.C.; Raleigh-Durham, N.C.; Atlanta; Austin, Houston and Dallas, Texas; Tampa and Miami, Fla.; Birmingham, Ala.; and Detroit.

Aereo's platform uses tiny antennas to capture free, over-the-air broadcast TV signals, transcodes them, and delivers them to customers over broadband. That's coupled with a network DVR. It also has a deal to stream Bloomberg TV, and is in discussions to carry more cable TV channels.

The expansion is predicated on how Aereo fares in its lawsuits, as major broadcasters are suing over copyright claims and want the service shut down. The broadcasters are worried Aereo's model will harm their ability to strike rich retransmission deals with pay-TV operators. (See Judge Keeps Aereo on the Air and Aereo Fights for Its Life.)

Aereo's Kanojia wouldn't forecast an outcome in the case.

Kanojia shed some light on what Aereo has learned about its customers so far. He says it’s a "50/50 mix," with half being "cord-cutters" and "cord-nevers," and the other half consumers pay-TV subscribers. Aereo has not disclosed a subscriber number, but he said about half of Aereo's customers use the product three to four times a week, with the reminder using it about two times per week. About 80 percent of usage happens indoors using Wi-Fi, he added.

Aereo will launch its first marketing campaign this quarter.

Kanojia also discussed Aereo's architecture in some detail, noting that it doesn't use a content delivery network and that it requires only 200 square feet of surface area to serve 350,000 subscribers. The larger scaling challenge, he said, is powering and cooling those sites.

The service is local, so Aereo doesn't have to worry about long-haul connections and can instead just simply lease fiber in its markets. Aereo's picture quality stands out, he said, because "we control the quality of that entire circuit."

— Jeff Baumgartner, Site Editor, Light Reading Cable

(14)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
jtombes
50%
50%
jtombes,
User Rank: Light Beer
1/11/2013 | 7:45:41 PM
re: Aereo Sets 22-City Expansion
Right ho. I'm wondering what demand is for smaller bundle of content, and at what price points.
jayja
50%
50%
jayja,
User Rank: Light Sabre
1/11/2013 | 1:08:55 PM
re: Aereo Sets 22-City Expansion
My guess:-á Playing it safe.-á If their argument is that they are merely locating antennae for their customers and using broadband in place of the cable from the roof top antenna to the TV then they will want to-á - NO FOOLING - be offeringg the service within antenna range, presumably with no signal enhancement vs OTA.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
1/11/2013 | 2:50:42 AM
re: Aereo Sets 22-City Expansion
The broadcasting industry has a long and largely unsuccessful history of attempts to rally station groups around a particular advanced technology -á(even HDTV didn't come easily). So I wonder if Diller & crew tried to win over broadcasters with Aereo before moving ahead. Based on the broadcasters' track record, he probably gave it two seconds of thought and, as he famously responded after losing his Paramount bid, said: Next. -á -á -á-á
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
1/10/2013 | 4:33:05 PM
re: Aereo Sets 22-City Expansion
The broadcasters are just mad because they didn't think of this first and now they can't-ámonetize-áon advanced smart targeted ads, etc.
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
1/10/2013 | 4:30:28 PM
re: Aereo Sets 22-City Expansion
Jeff B, do you know more about how they determine "eligibility" ?
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 3:19:53 PM
re: Aereo Sets 22-City Expansion
Interesting, i have not thought about that... sure, go ahead and nest the really good stuff into the pay channels. That'll learn-á'em.-á-á But I don't see that flying with the government...it might argue that such a move would be an abuse or misuse of those free airwaves. But I agree, somebody's going to pay the freight. JB
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 3:16:50 PM
re: Aereo Sets 22-City Expansion
It would appear so...but still interested to see how Aereo would do with its approach once it starts to expand and actually market the thing.-á But we've seen these slimmed-down, no-frills cheaper alternatives flame out before...USDTV, Sezmi...

NOticed in the LA Times that Chet thinks he can get 5% to 6% marketshare. With 100M homes covered, that's quite a goal to put out there. JB
joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
1/10/2013 | 2:39:05 PM
re: Aereo Sets 22-City Expansion
I think it would be a real shame if Aereo were shut down. I believe a growing number of people are interested in OTT and over-the-air video as an alternative to cable but who don't have a roof antenna any more who could benefit from Aereo's offering. I'm hoping that they either win the legal battles or reach some settlement with broadcasters. Expanding to more cities means that many more people will be disappointed if Aereo is shut down -- and regulators will be that much less likely to do that.
Cooper10
50%
50%
Cooper10,
User Rank: Light Beer
1/10/2013 | 1:27:38 PM
re: Aereo Sets 22-City Expansion
Pay TV penetration is ~90% of HHs - there is high demand at current price points.
jtombes
50%
50%
jtombes,
User Rank: Light Beer
1/10/2013 | 2:50:33 AM
re: Aereo Sets 22-City Expansion
The extent to which Aereo succeeds in the market (apart from the courts) will show how much demand there is for a lower cost bundle of less --i.e. fewer channels of-- 'high quality, professionally produced content.'
Page 1 / 2   >   >>
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    LoRa Alliance Defends Tech Against Sigfox Slur
    Iain Morris, News Editor, 4/28/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.