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

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More