Aereo Expanding to 22 Cities, Raises $38M from Investors - Despite Legal Challenges

By Ed Silverstein January 08, 2013

There’s a lot of positive news for Aereo this week as the company announced it will expand this year to 22 new U.S. cities, and says it has raised some $38 million from investors.

Taking part in the new Series B round were current investors IAC and Highland Capital Partners. Also, earlier investors from Aereo's Series A funding round – such as FirstMark Capital, First Round Capital, and High Line Venture Partners – took part in the second funding round, as did private investors.

Given its expansion plans, the company predicts it will be accessible to over 97 million consumers. The new cities that will get the service include: Boston, Miami, Austin, Atlanta, Chicago, Dallas, Houston, Washington, D.C., Baltimore, Detroit, Denver, Minneapolis, Philadelphia, Pittsburgh, Tampa, Cleveland, Kansas City, Raleigh-Durham (NC), Salt Lake City, Birmingham (AL), Providence (RI), and Madison (WI).

The new cities will start getting the service in late spring. More expansion is likely. Currently, consumers can watch Aereo only if they live in New York City.

The total number of current subscribers was not released, but some sector analysts estimated it may be in the “low thousands,” news reports said. The numbers are likely to increase soon.

It offers consumers remote antenna/DVR technology, which can record or let viewers watch live broadcast TV online via Internet-connected devices.

"Aereo's technology is simply one of the easiest, most convenient ways for consumers to access broadcast television," Aereo CEO, Chet Kanojia, said in a statement. "We've been working hard to bring Aereo to consumers across the country and we're excited to expand our reach to these 22 new cities. Consumers want and deserve choice. Watching television should be simple, convenient and rationally priced. Aereo's technology provides exactly that: choice, flexibility and a first-class experience that every consumer deserves."

Aereo is supported on iPad, iPhone, Chrome, Internet Explorer 9, Firefox, Safari, Opera, AppleTV and Roku, according to TechZone360.

Aereo has been testing the service since July, when it was offered to New Yorkers.

“It was important to learn who these customers are and understand what it means to operate this business,” Kanojia told The New York Times. “We now have relevant data points that allow us to make the same bet in other cities.”

The new money will be used to build out the network, The Times said. Technology is required for expansion. New employees need to be hired and marketing campaigns expanded.

The company is also fighting judicial battles with broadcasters who do not want it in operation. A court case is pending.

To view a video of Kanojia announcing the expansion plans and new investment, while at the Citi Global Internet, Media & Telecommunications Conference in Las Vegas, held in conjunction with the Consumer Electronics Show, click here.




Edited by Braden Becker

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Severed Internet Cables Causing Massive Outages in Bay Area

By: Joe Rizzo    7/2/2015

At 4:20 am. on Tuesday morning, three fiber optic cables providing Internet access to Sacramento were physically cut leaving California's capital with…

Read More

The Future Form of Communication is Telepathy, According to Zuckerberg

By: Joe Rizzo    7/2/2015

"One day, I believe we'll be able to send full rich thoughts to each other directly using technology. You'll just be able to think of something and yo…

Read More

1Gbps Broadband Boosts Economy, Home Prices

By: Tara Seals    7/2/2015

1Gbps services to the home-the new frontier of competition for triple-play providers-turn out to have a measurable economic benefit. A study from the …

Read More

Windy City Takes on Cloud: New Tax on Streaming Media, SaaS and PaaS

By: Laura Stotler    7/1/2015

In a bold and controversial move, the city of Chicago instituted a new cloud tax today that will target online databases as well as popular streaming …

Read More

Practical Step-by-Step Guidance After Your Company Has Been Hacked

By: TMCnet Special Guest    6/30/2015

Everybody tends to think that hackers will never ever target them or their company/organization-until a breach occurs. We have already published sever…

Read More