Light Reading

Aereo Plans Faster Growth Amid Legal Drama

Alan Breznick
1/9/2014
50%
50%

Despite the continuing legal efforts by the major US TV broadcasters to knock it out, Aereo is continuing on its merry way and showing no signs of slowing down.

In fact, Aereo Inc. , the video-streaming startup backed by former US broadcasting mogul Barry Diller that now operates in 10 American markets, intends to add five more by mid-February. It then plans to expand to another seven markets by the early summer, boosting its total market coverage to 22 regions, even as broadcasters attempt to take their legal blockade to the US Supreme Court. (See Aereo Fight Heats Up in DC.)

Beyond those plans, Aereo is looking to extend its reach further in the second half of the year. Speaking at the Citi Global investment, Media & Telecommunications conference in Las Vegas Wednesday, Aereo CEO Chet Kanojia said his company is scrambling to beef up its nationwide presence as quickly as possible because it knows that time is of the essence. "We don't want to end up winning the legal battle while losing the bigger battle," he said.

To further fuel its expansion plans, privately held Aereo just raised another $34 million in funding from a group of investors this week. With the fresh infusion of funds, the company has now raised close to $100 million in capital from its backers. (See Aereo Raises $34M .)

Kanojia indicated that more funding will likely be needed for Aereo to reach its goals of nationwide household and device coverage. As with online video providers, he said, it will take "a good deal of capital" for the company to "truly scale" its delivery infrastructure.

While Aereo has not disclosed any customer figures from its initial markets yet, Kanojia did reveal that the company needs just 6,000 paying subscribers to break even in any market. Aereo now charges customers $8 to $12 per month for its mix of local TV stations and cloud-based DVR service.

To his surprise, Kanojia said Aereo has learned from its early deployments that the majority of its customers are watching the service on their big-screen TVs, not tablets and other smaller portable devices. He estimated that 60% to 70% of subscribers are viewing Aereo's fare this way, which he considers a very promising sign. "That makes it a very stable product with a low turnover rate," he said.

Although it initially attracted mainly male techies, Kanojia said Aereo has seen its appeal broaden out to young families and young couples with limited disposable income. "It's speaking toward the value question and flexibility," he said.

As a result of these research findings, Aereo is now shifting its marketing efforts to focus more on big-screen users and young households, Kanojia said. In addition, he said the company is looking to develop more apps for customers.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/13/2014 | 12:56:08 PM
Re: Supreme Court Case Be Damned
Yup. I agree. And I think they're going to win at the Supreme Court too. So it could be a very interesting market to watch. I wonder how many Aereo wannabes we'll see too. 
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/13/2014 | 12:54:22 PM
re:Aereo Growth
Good idea, Wanlord. I bet they're looking at that too. That could really rocket them from a niche service to something much bigger. 
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
1/10/2014 | 9:38:35 AM
re:Aereo Growth
Once they get through these legal hurdles, I think their next strategy should be less focused on having individual sign ups and work to integrate their stream with partners like Apple TV, Google, and other boxes. Having all of that combined is more reason to "cut the cord".  People don't want to pay individual bills for different content sources. I want everything in once place with one bill and one interface.
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/10/2014 | 12:14:27 AM
Re: Supreme Court Case Be Damned
They also don;t seem to be having any problem raising the money for expansion. If they do win in court, things could get very interesting very quickly on the customer front.
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/9/2014 | 6:02:49 PM
Supreme Court Case Be Damned
I have to hand it to the Aereo folks. They're not letting the prospect of extended litigation and a potential Supreme Court battle get in their way or slow them down. What I'd really like to know is how many customers they've signed up so far. I'll have more to say on what Kanojia had to say about retrans consent and related topics in a subsequent blog post.   
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (2) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
T-Mobile Launches RCS Messaging
Sarah Thomas, Editorial Operations Director, 7/22/2015
Huawei Working Hard for Rural Success
Carol Wilson, Editor-at-large, 7/22/2015
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Eurobites: Alcatel-Lucent, Vodafone Test TWDM-PON
Paul Rainford, Assistant Editor, Europe, 7/22/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Cat Sense Click Here
Can you hear me now?