Local TV is under assault from the Internet in a big way, but Aereo might have come up with an answer.
Backed by Barry Diller (creator of the Fox network) and IAC with financing of $20M, Aereo is launching in New York City on March 14th. Diller says he's looking to break local broadcast TV out of the hands of the cable guys, and put it in the hands of the casual viewer with a tablet, smartphone, or PC.
Aereo's operation is simple.
- ABC, CBS, Fox, NBC, PBS, and others broadcast HD normally over the air.
- Aereo's tiny antenna, positioned somewhere in a data center, receives the signal.
- It's connected to a virtual DVR which streams the programming in real-time over IP to your connected mobile device, and you can record shows for watching them later.
I know, I have that memorized too. "Any rebroadcast, retransmission, or other use of the pictures or descriptions of this game without the express written consent of …".
But here's the hook and why I think it'll not only withstand legal challenge, but the TV stations will embrace it: you are leasing an antenna that is dedicated to you, for a monthly fee of $12. From the broadcaster perspective, it's no different than you setting up an HD antenna and tuner in your house and receiving their program. From your perspective, there's no equipment in your house to set up. No tethering to your TV, but if you have AppleTV (er, iTV …) or Roku you can connect to the programming with those.
There's also no messing with antennas; the same picture quality is available anywhere in the Tri-State, regardless of buildings, trees, weather, and distance. I remember as a kid we got the Mets feed from WTEN Albany. I'd go to my grandmother's house next door because my dad wouldn't let me mess with his antenna, and try desperately to pull Yankees games on WPIX, sometimes with success. Unfortunately, in most local markets baseball is gone from OTA today, but the idea is the same - local TV can build a following if the content is good and it's receivable on the device of choice.
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