Cord-Cutting: Will Aereo’s Cheaper TV Streams Frustrate TV Networks?
By Karla Robinson
August 3, 2012
August 3, 2012
- Following its initial victory in federal court in mid-July, Aereo has announced changes to its financial model that could further enrage TV broadcasters who continue to battle the company on claims of copyright infringement.
- “TV streaming start-up Aereo has unveiled a more flexible pricing structure that includes a $1 day pass, $8 and $12 monthly passes, and an $80 annual plan,” reports VentureBeat.
- “Aereo lets New York City residents view live streams from major TV broadcast networks (including ABC, CBS, NBC, and Fox) on a variety of Internet-connected devices, such as smartphones, tablets, and desktops,” explains the post. “There’s also a DVR in the mix that allows users to record up to 40 hours of content that can be streamed later. Ultimately, it’s a great solution for cord-cutters that still want to enjoy local content.”
- In addition to updating its original $12/month subscription, the company is offering “Aereo Try for Free,” an introductory trial that allows NYC residents to watch one continuous hour of TV everyday without paying.
- “We know that one size does not fit all, that’s why we’ve designed our new pricing structure to work for a wide variety of lifestyles,” explains Aereo CEO Chet Kanojia. “Whether you want a day pass to watch the ‘big game’ on your mobile device or an annual membership that provides you with 40 hours of DVR storage, we have a plan that works for you.”
- Aereo is currently available only to TV viewers in NYC, but the company has plans to expand. “We’re going to really start marketing,” said backer Barry Diller last month following the court decision. “Within a year and a half, certainly by 2013, we’ll be in most major markets.”
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