Unless derailed by a court case, Aereo is ready to expand, and that threatens over-the-air television as we know it.
What is Aereo (from AP)?
Aereo converts television signals into computer data and sends them over the Internet to subscribers’ computers and mobile devices. Subscribers can watch channels live or record them with an Internet-based digital video recorder. They can pause and rewind live television, just like a DVR.
Where is Aereo going?
The Barry Diller-backed company announced in January that it plans to expand beyond New York to 22 additional U.S. markets. Boston represents the first metropolitan area outside New York. Others expected in the coming months include Chicago, Philadelphia and Washington.
Who does Aereo endanger?
Broadcasters see Aereo as a threat to their revenue, even though stations already make signals available for free. Broadcasters are increasingly supplementing advertising revenue with fees they get from cable and satellite TV companies for redistributing their stations to subscribers. If customers drop their pay-TV service and use Aereo instead, broadcasters would lose some of that revenue.
Now that’s disruptive technology.