NY based Aereo is introducing a service that picks up local broadcasts and streams them via the Internet to mobile devices and TV sets. The service will be implemented first in NY and then eventually to the rest of the country. Subscribers can pay fees starting at eight dollars a month to record shows to watch later. According to the New York Times, Aereo executives are looking to reach users who have never had cable, and are joining similar initiatives of startup Boxee and Apple Inc in their search to tap into more entertainment spending.
Chet Kanojia, founder and CEO of Aereo, said, “The goal is not to recreate the cable companies but to create an alternative for people who are coming into television from the Net side first. There’s an emerging population of people who have never signed up for traditional cable packages, who are used to customizing their own TV experience.” However, broadcasters are trying to shut the company down on claims of a violation of copyright law. Though repacking these transmissions would normally violate law, Aereo assigns each subscriber two antennas which allow users to simultaneously live view and record shows. This method is claimed to be equivalent to someone buying an antenna and DVR at a store and hooking it up to a home TV.