Light Reading

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   >   >>
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
Between the CEOs
Affirmed Networks CEO: Digging Into NFV

5|28|15   |   40:26   |   (2) comments


Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
Charter Seals Deals for TWC, Bright House
Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Will Carriers Follow Facebook's Networking Lead?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/28/2015
Charter Plans Business Services, Wireless Push
Alan Breznick, Cable/Video Practice Leader, 5/27/2015
Facebook Reinvents Data Center Networking
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/26/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
Cats with Phones