Light Reading
Aereo also lands a $38M second round as it gears up for the first phase of a nationwide expansion ... if the broadcasters don't kill it first

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
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:- Playing it safe.- 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- - 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 -(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. - - --
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-monetize-on 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-'em.-- 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.- 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   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Roku Raises $25M, But for What?
Mari Silbey, Independent Technology Editor, 10/23/2014
AT&T: Merger Review Halt Won't Hurt Us
Alan Breznick, Cable/Video Practice Leader, 10/23/2014
Like Us on Facebook
Twitter Feed