Aereo is banking on two things: Consumers wanting live broadcast programming sent directly to their mobile devices through the cloud, and TV networks not taking them to court. The tech startup is testing the former first with an invite-only trial in the Big Apple.
Aereo's big twist on over-the-air content comes in the form of thumbnail-size antennas that are rented out to subscribers for $12/month. Users' tablets and smartphones become mini-TVs, tapping into live HD feeds from CBS, NBC, ABC, Fox and more through a single account. Cable networks are (so far) a no-go, limiting Aereo's appeal to tech-savvy consumers who refuse to settle for anything less than everything.
The venture's scope is also limited. When Aereo officially launches on March 14, it does so exclusively in New York City. In the meantime, there are some kinks to work out.
A Forbes reporter tested the service and ran into several problems trying to use its DVR function, including selected programs not recording and some that weren't popping up in the queue anyway. An Aereo spokesperson explained that the service is still in beta and being updated hourly.
It's also unknown if broadcast giants will throw a legal wrench into Aereo's plans, or just ask for a big paycheck. Washington Attorney Scott Flick told USA Today that despite the company's argument to the contrary, what it's essentially doing is retransmitting content without permission.
"When you take somebody's programming and you make it available on some device that wouldn't normally receive that, that sounds a lot like retransmission," said Flick. "The laws here are fairly tight. There's not a lot of room for wiggle."
Despite the growing pains and potential legal trouble, media mogul Barry Diller believes in the tech. Diller, who previously sat at the throne of FOX and Paramount Pictures, pledged $20.5 million to Aereo (.pdf) this week through his firm, InterActiveCorp (IAC).
"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," said Diller. "No wires, no new boxes or remotes, portable everywhere there's an Internet connection in the world - truly a revolutionary product." (via Aereo)
