Streaming TV startup Aereo generated quite a few headlines last year. Backed by Barry Diller and IAC, the controversial young company has become entangled in a lengthy and expensive legal battle with the major network broadcasters who want to see it shut down — a battle that’s now headed to the Supreme Court.
While the startup has been growing fast and announced big expansion plans early last year as a result — in which it expected to be in 22 new markets by the end of 2013 — the legal battles have slowed Aereo’s nationwide expansion. However, today Aereo looks to be turning that around with a big round of new capital to fuel these efforts, as the New York City-based company announced that it has closed $34 million in Series C financing.
The new round, in which the company’s lead investor, IAC, was joined by media investor honchos like Gordon Crawford and Himalaya Capital Management, will support Aereo’s “rapid nationwide expansion” and allow it to ramp up hiring, the company said. Previous investors Highland Capital Partners, FirstMark Capital also joined in the round.
When my colleague Jordan Crook sat down with Chet Kanojia in December, the Aereo founder and CEO was eager to have the case move ahead to the Supreme Court and remained confident that Aereo is operating within the law. While that may sound like entrepreneurial delusion or hubris, the founder has reason to be confident. Up to this point, while broadcasters have slapped it with injunctions and moved to hamstring the startup with legal shackles, the company already has two verdicts in its favor.
For Kanojia, a victory at the federal level might finally — or at least for the time being — remove any question as to the legality and legitimacy of Aereo’s business. It could also make the obstacle presented by its clone, FilmOn, disappear as well. Aereo already has more than a little skin in the game, as the CEO admitted that the ongoing lawsuits had been both expensive and distracting.
To that point, while Aereo pledged that its expansion would see it arrive in 22 new markets by the end of 2013, the legal battles have slowed that progress significantly. When January 1st rolled around, Aereo had managed only half of that pledge and is currently operating in 10 cities.
Not to mention the fact that legal wrangles haven’t been Aereo’s only obstacle, as the startup has also encountered technical difficulties in moving its predominantly indoor technology out of doors — to rooftops in new markets. Not only that, but it’s had to wait for the “outdoor-friendly technology” to get regulatory approval as well, as Jordan wrote at the time.
Nonetheless, the company remains optimistic, and with its new capital in tow, Aereo plans to be in five new markets by the end of the first quarter of 2014. Amidst the escalating wars in court, the startup has managed to scale quickly over the last year, launching its first Android app last year (the app is currently in beta) and doubling its headcount, Kanojia said today.
The startup’s cloud-based antenna and DVR technology is now operating in New York City, Boston, Atlanta, Miami, Salt Lake City, Houston, Dallas, Denver, Detroit and Baltimore and offers memberships starting at $8/month for access to the antenna, with 20 hours of DVR storage.
The company will be making a full presentation about the news at the Citi Global Internet, Media & Telecommunications Conference tomorrow morning. Readers can find the live stream of the event here.
We’ve reached out to the company to learn more, and will be updating the post in the meantime.
via TechCrunch http://feedproxy.google.com/~r/Techcrunch/~3/XE7GgRtsAe8/
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