Aereo raises $34 million, plans 15 market expansion by March
Aereo is a video streaming startup that allows users to watch live local TV channels for $8 per month. Aereo has announced that they have raised $34 million in funding to pursue an expansion plan.
Aereo will use the $34 million in funding to expand nationwide and increase their staff and technology. Aereo has raised a total of over $92 million thus far.
Aereo’s current markets include: Atlanta, Baltimore, Boston, Dallas, Denver, Detroit, Houston, Miami, New York and Salt Lake City.
“Aereo has scaled very quickly in 365 days and this additional funding will allow us to maintain this rapid pace of growth. We are thrilled to have a world-class group of investors who believe innovative, cloud-based technologies, like Aereo, are the future,” stated founder and CEO Chet Kanojia.
Investors in this round include previous investor InterActiveCorp, Gordon Crawford, and Himalaya Capital Management.
Aereo’s growth has been rather controversial. Aereo is facing a legal battle with ABC, CBS, NBC, and Fox along with support from the NFL and MLB.
These organizations claim that Aereo should be shut down due to copyright infringement. Aereo uses tiny antennas for streaming content. This means that there is a single transmission for each subscriber.
Aereo won a case in a major appeals court this past April in New York. The company also won a case in Boston. Now Aereo will have to face a case in front of the Supreme Court.