Light Reading
It may seem far-fetched, but CEO Chet Kanojia believes cable operators can use Aereo to create a more 'compelling' broadband service bundle

Aereo: Cable Partner?

Jeff Baumgartner
The Bauminator
Jeff Baumgartner
2/27/2013
50%
50%

LAS VEGAS -- NCTC Winter Educational Conference (WEC) -- Aereo Inc. has been called a lot of things during its brief life: market disruptor, cord-cutting tool and -- if you happen to be a TV broadcaster -- copyright infringer. (See Diller's Aereo Under Legal Attack and Aereo Makes Cord-Cutting Bid in NYC.) Here's another possible label: cable partner. Say what? That one was posed by Aereo CEO Chet Kanojia here Monday on a panel about the "Future of TV," as he noted that "we'll take a very open approach with everyone we choose to work with." So, how would Aereo work with cable, considering that some view Aereo as a potential threat to the pay-TV model and a destroyer of the traditional video bundle? Among the possible options, Kanojia postulated that some operators might be interested in bundling in Aereo so they can make a "more compelling" broadband product. Nothing along those lines appears to be ready to pop at the moment, but Kanojia said he'd be "ecstatic" to work with a like-thinking cable ISP. The idea might make sense for the group of operators that were in attendance her -- primarily Tier 2/3 independent operators that are getting increasingly disenchanted with delivering a video service that is exposed to a one-two punch of rising programming fees and shrinking margins. And some smaller ISPs have even noodled how they could work with Aereo, if given the opportunity. Toledo Telephone Co. Inc. COO Dale Merten, for example, brought up just such an idea last year at a Light Reading video event in Boston. (See Aereo's ISP Opportunity.) The problem (or one of them, anyway) is that Aereo's service is presently limited to the New York City metro, and its expansion plans call for it to target larger cities, not necessarily the towns and rural markets that are served by typical cable operator that was represented here this week. (See Aereo Sets 22-City Expansion.) Kanjoia also expressed what doesn't interest him: helping cable operators gain leverage in their retransmission negotiations with broadcasters. "I spend 50 microseconds thinking about that stuff," he said. "My goal is to create a platform." But others in the cable industry think Aereo can lend a helping hand, whether it actively intends to or not. "We'll see how the litigation turns out," Matthew Polka, the CEO of the American Cable Association (ACA), said during a panel on Tuesday morning, noting that he does not see Aereo as much of a threat to cable operators. "I'm interested in seeing the development of technology like Aereo's and others that provide alternative means of carriage of broadcast signals." And if Aereo wins its case ("I like my chances, but I can't predict my future," Kenojia said), cable operators might want to think twice about trying to replicate Aereo's technological feat. For one, there's another type of litigation risk to consider. Aereo's got lots of intellectual property tied up in its platform, which includes all those thumb-sized digital antennas. Kenjoia also believes it won't be easy to duplicate Aereo's ability to support "thousands of concurrent transcodes set at multiple bit-rates" so it can ship live and recorded video to a wide range of IP-connected devices. "It's non-trivial technology," the exec boasts. "It's a remarkable feat of engineering to do what we've done." But if the courts look favorably on Aereo's approach, some cable operators might have an opportunity to use it. — Jeff Baumgartner, Site Editor, Light Reading Cable

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
3/1/2013 | 5:07:44 PM
re: Aereo: Cable Partner?
but still very questionable if MSOs will play a direct part with Aereo.-á I spoke to a cable exec privately about this and was told that contracts with bcasters typically include items in there that would prevent them from bundling in a service like Aereo's,-áno matter how the legal case shapes up.-á Wonder if that was part of what took the wind out of the sails when cable operators and vendors were demonstrating set-tops with built-in OTA digital antennas. JB
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
2/28/2013 | 2:18:17 PM
re: Aereo: Cable Partner?
Another example of a "disruptive technology" coming to realize that cable's actually pretty important to their future. Or at least they need to sound like they'll play nice. Reminds me of two other disruptive technology providers, Sling and TiVo, both of which eventually courted cable. Sling never got anywhere and TiVo went to hell and back to get cable deals.
jtombes
50%
50%
jtombes,
User Rank: Light Beer
2/28/2013 | 5:21:26 AM
re: Aereo: Cable Partner?
Hard to say which of the metros in that 22-city expansion might be a better fit for a cable broadband/Aereo collaboration than NYC. Birmingham? Madison? Ever since the digital transition I've been bullish on the quality of over-the-air digital (uncompressed HD, after all). But in those tier 2/3 markets, Aereo is up against satellite -- cheap, lots of channels, lots of HD. Keep us posted on what happens next....
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from The Bauminator
Don't expect anything more to pop for a while, but one analyst sees John Malone & Co. as the 'logical, ultimate acquirer of Ziggo' if the price is right
Cable operators will need to free up at least 24MHz of spectrum for Docsis 3.1. But why is that the magic number?
Liberty Media's rumored plan to snag a 25% stake in Charter for $2.5B could aid the MSO's M&A strategy
Top US cable operators lost 1.41 million video subs in 2012, but the bleeding continues to show signs of slowing in a saturated pay-TV market
Aereo streams its 'no cable required' tagline into the video world. Will consumers tune in to the message?
Flash Poll
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Be Open to the Freedom of Openness
Kelly Herrell, 8/29/2014
Netflix to FCC: Kill Comcast-TWC Deal
Alan Breznick, Cable/Video Practice Leader, 8/28/2014
Like Us on Facebook
Twitter Feed