has a new expansion plan. One month after CEO Chet Kanojia announced he'd consider cozying up to cable
, The Wall Street Journal reports
the New York startup has already had partnership discussions with major TV and Internet providers including AT&T Inc.
and Dish Network Corp.
Broadcasters are suing Aereo for bypassing retransmission fees with technology that transcodes over-the-air programming for IP distribution. However, while the court battles carry on
, Aereo has remained aggressive about promoting its TV service as a less-expensive alternative to cable. Now it turns out that the company's promise of cheaper TV may not only be attractive to consumers, but a lure for service providers as well.
If pay-TV providers do ally themselves with Aereo, it wouldn't be the first time the industry has partnered with a self-proclaimed cord-cutting alternative. Longtime cable enemy TiVo Inc.
is now a friend to several MSOs, including Virgin Media Inc.
, DirecTV Group Inc.
, Suddenlink Communications
and RCN Corp.
Still, the latest news of Aereo's partnership discussions doesn't point to any concrete deals, and the potential legal fallout ahead may keep pay-TV companies away. Savvy Aereo is driving headlines, but whether it can create a sustainable business remains to be seen. (See also: Aereo Widens Net to 19M Homes
and Aereo's ISP Opportunity
— Mari Silbey, Special to Light Reading Cable
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