Live TV on the Internet planned for Pittsburgh
By The Associated Press
Published: Tuesday, Jan. 8, 2013, 6:50 p.m.
NEW YORK — The Barry Diller-backed Internet company that challenged cable and satellite TV services by offering inexpensive live television online plans to expand beyond New York City this spring.
In response to a federal court ruling that tentatively endorsed its legality, Aereo will bring its $8-a-month service to Pittsburgh, Boston, Chicago, Philadelphia, Washington and 17 other markets, as well as to New York's suburbs. For the past year, the service had been limited to New York City residents as the company fine-tuned its technology and awaited guidance on whether its unlicensed use of free, over-the-air broadcasts amounted to a copyright violation.
A federal judge in New York ruled in July that the service doesn't appear to violate copyright law because individual subscribers are assigned their own, tiny antenna at Aereo's Brooklyn data center, making it analogous to the free signal a consumer would get with a regular antenna at home. Aereo spent the subsequent months selecting markets for expansion and renting space for new equipment in those cities.
“The court decision was the green light in our perspective,” CEO and founder Chet Kanojia said in a recent interview at Aereo's sparse offices in a former engine factory in Queens. “This is an opportunity of a lifetime to build up something meaningful to change how people access TV.”
Aereo is one of several startups set up to deliver traditional media over the Internet without licensing agreements. Past efforts have typically been rejected by courts as copyright violations. In Aereo's case, the judge accepted the company's legal reasoning, but with reluctance.
If the ruling stands, Aereo could cause a great deal of upheaval in the broadcast industry. It could give people a reason to drop cable or satellite subscriptions as monthly bills rise. It also might hinder broadcasters' ability to sell ads because it's not yet clear how traditional audience measures will incorporate Aereo's viewership. In addition, it could reduce the licensing fees broadcasters collect from cable and satellite companies.
Broadcasters have appealed the July ruling. At a November hearing, appellate judges expressed skepticism about the legality of Aereo's operations. In addition, the original judge's ruling was preliminary, made as part of a decision to let Aereo continue operating while the lawsuits wind their way through court. Even if courts continue to side with Aereo on the legality of its setup, broadcasters still could nitpick on the details and try to argue that the antennas don't actually operate individually as claimed.
With average monthly TV bills exceeding $75, Aereo is positioning itself as a cheaper alternative. For $8 a month, subscribers in New York get 29 over-the-air stations. They can watch shows live and record up to 20 hours using Aereo's Internet-based digital video recorder. Subscribers get 40 hours of DVR space for $12 a month and can reduce that to less than $7 by paying for a year in advance.
While cable and satellite services are geared toward watching television on TVs, Aereo streams feeds over the Internet to Windows and Mac computers, iPhones, iPads and boxes such as Roku and Apple TV for feeding Internet content to regular TVs. Android support is expected this year. Services such as Hulu and Apple's iTunes also offer television over the Internet, but not live.
The downside: Aereo doesn't offer cable channels such as CNN, HBO, ESPN and regional sports networks. The exception is Bloomberg TV financial news channel, which reached a deal in which Aereo is paying an unspecified fee. Cable lineups typically have hundreds of channels, compared with a few dozen for Aereo.
The other markets Aereo announced in Las Vegas on Tuesday for this spring's expansion are Atlanta, Austin, Baltimore, Birmingham, Ala., Cleveland, Dallas, Denver, Detroit, Houston, Kansas City, Madison, Wis., Miami, Minneapolis, Providence, R.I., Raleigh-Durham, N.C., Salt Lake City, and Tampa. . With that, Aereo estimates that the service will reach nearly 100 million potential customers.
After that, Aereo plans to add more cities a few times each year.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Mastech Holdings records 51 percent profit jump in 1st quarter
- Corbett: Coal is working
- Young visionaries at PieceMaker Technologies Inc. see future in 3-D
- PNC’s CEO elected board chairman
- Drugmakers ready to carve out deals any way they can
- BNY Mellon notches $661M profit in 1st quarter
- ATI takes 1st-quarter loss, but says outlook is good
- McDonald’s profit slips amid weak sales
- Tesla delivers 1st cars in China
- ‘Old GM’ defense expected in court fight over faulty ignition switch
- AT&T joins crowded field with online video plans