Aereo is a provider of live Internet TV through IP for Internet-connected devices through use of a remote integrated DVR technology. Headquartered in New York, the company has raised a total of $58.8 million from IAC, FirstMark Capital, First Round Capital, High Line Venture Partners and Highland Capital Partners till date.


The hottest technology trend in the current space of entertainment is the gradual demise of customer premises equipments (CPE). CPE refers to a telecommunications hardware device located on the telecommunication customer's premises. This equipment might include cable or satellite television set-top boxes, DSL or other broadband Internet routers, VoIP base stations, telephone handsets, or other customized hardware.


Historically, video has always been streamed through television and co-axial systems. The future is going to witness the growth of Internet (protocol) TV in general. The industry is moving at a snail’s space, but with Americans spending 35 hours a week in front of their televisions, the vertical is expected to pick up the pace in a few years. IP based delivery, TV and cloud based models are the benchmarks that consumer products are eventually going to incorporate on a large scale.


Customers want Small Channel Packages


The neo smart consumer is not in the lookout for a cable connection with a set top box. The monthly subscription for the same can extend close to $ 200-300 per month. Moreover the average consumer is only interested in a closely knit number of channels totaling not more than 12-15 channels. The average TV viewer is on the lookout for smaller packages, so if they are comfortable in viewing videos online, then internet protocol TV is the way forward. Over the last 10 years the cable subscriptions dominated the market.


The move to IP could disrupt the $150 billion pay-TV industry by providing millions of subscribers with an almost 200 percent cheaper alternative in the form of Internet protocol TV which gives the liberty of smaller and more effective channel packaging. The availability of pictures on IP opens up the wide possibility of providing the luxury of TV on a host of other devices such as tablets and smartphones. The entertainment users are always attracted towards big screens with high definition viewing. However, convenience and cost also play as major differentiators. The migration from the cable TV operations towards the IP television revolution is inevitable. Consumers want the luxury of being able to view Live TV on a handheld device as well as an 50 inch screen.

Complexities in Business Models


The field is concentrated with big players and budding entrepreneurs face challenges with respect to the structuring of the start-up. The complexities of the business models also pose a hindrance. Not understanding the different shades of the industry is the mistake that most young entrepreneurs commit. There is a significant proposition with regards to the slow development in this field. A high level of investment is required and there is a genuine lack of talent that understands the various challenges in the industry. These are clear cut multi dimensional challenges in the field.
The future is going to see the cloud enabled entertainment services being utilized and a noticeable movement towards cloud based content systems. Given the technology and market approach, Aereo wedges between content and television. The content is mostly packaged within the distribution technology. 50 percent of cable TV memberships are going to shift completely neutral IP technologies for entertainment needs.