Aereo's antenna
Back in April of last year I wrote about Bamboom, a start-up company that streams live over-the-air TV to cord-cutters. Well, last week, Bamboom officially launched under a new label, Aereo. Here’s how it works. For $12 per month, Aereo rents each subscriber a tiny over the air antenna. The antenna pulls in live local channels, and Aereo streams them to internet devices including PCs, Roku boxes, Apple devices (iPads, Apple TVs, and iPhones), and Android based devices including the Kindle Fire. Aereo promises access to live broadcasts of ABC, CBS, NBC, FOX, CW, PBS, and other local channels. The service also includes a cloud-based DVR that can record up to 40 hours of programs. Unfortunately, Aereo is only available to New York City residents at this point.
Lack of access to live local channels via streaming is a major reason many hold on to their pay-TV subscriptions. If Aereo can successfully bridge that gap, it will cause a seismic shift in the television industry. Imagine having Netflix ($7.99 per month) plus Aereo ($12 per month) plus all the free online video (Hulu, YouTube, etc.) you can eat for around $20 per month. A deal like this could cause a mass exodus away from cable and satellite TV. But Aereo has a major legal hurdle to clear first. Two companies, FilmOn and IVI TV tried streaming network TV in the past, and both were shot down in court. Aereo hopes to work around broadcast transmission restrictions by providing each customer with his own personal antenna. The movie service Zediva tried something similar. They tried to bypass DVD restrictions by using a cloud based DVD player “rented” to customers to play and stream new releases online. Zediva was eventually shut down. According to Bloomberg, broadcasters plan on taking Aereo to task over retransmission rights. So let the legal games begin.
But one person sets Aereo apart from the others, Barry Diller. Mr. Diller, who is on Aereo’s board of directors, is one of the creators of Fox Broadcasting Company, former Chairman and Chief Executive of Paramount Pictures Corporation, and former Vice President of Prime Time Television for ABC Entertainment. He is currently the Chairman and Senior Executive of IAC, a major investor in Aereo. “Aereo is the first potentially transformative technology that has the chance to give people access to broadcast television delivered over the Internet to any device, large or small, they desire. No wires, no new boxes or remotes, portable everywhere there’s an Internet connection in the world — truly a revolutionary product,” said Mr. Diller. With Diller’s experience and clout behind Aereo, they may be able to avoid the legal quicksand that swallowed up others.
Here’s a demo of Aereo in action:
