Aereo CEO Says The Service Will Be Profitable Before Hitting 1M Subscribers
Earlier this week Aereo CEO Chet Kanojia talked to a group of startups in New York. During the talks, he mentioned that the company did not need millions of subscribers to be profitable. Kanojia said that 1 million registered users would make a fabulous business and 5 million users would be an “extremely fabulous” business. The company would be profitable with several hundreds of thousands of subscribers.
Kanojia said that he hopes one out of every four people would be using Aereo in the next 5-7 years. This represents around 78.5 million people. Currently Netflix has about 30 million domestic streaming users. Aereo did not disclose how many subscribers they have.
Aereo is backed by IAC chairman Barry Diller. Aereo uses antenna/DVR to allow users to watch live and local over-the-air TV broadcasts. CBS, ABC, FOX, NBC, and Telemundo have filed lawsuits against Aereo for violating copyrights and getting around retransmission fees though. Aereo said that their practice is legit since each users has their own dedicated antenna. Aereo won a recent lawsuit that took place in New York. The U.S. Court of Appeals for the Second Circuit also denied the request to halt Aereo’s business while the case goes to court.
Aereo said that they will be moving to 22 total cities around the U.S. over the year. Currently it operates in New York, Boston, and Atlanta. Aereo will be expanding to Chicago, Salt Lake City, Dallas, Houston, and Miami soon.