Post #15 – Okay, now I have Aereo. It’s unlikely to change TV.

Aereo became available for Boston so I signed up to see what it’s all about. The Web interface is nice and the guide is well thought out. It’s easy to set a DVR recording of a show. They have the usual two sizes of online video – too small and too big.

My choices for seeing it on a regular TV screen, for the moment, are Roku and Apple TV (using Airplay). The problem is, so what? I can get all my local channels through my FIOS box. Or directly over the air through my TV tuner with a cheap indoor antenna for free. On older TVs you also need a cheap converter box.

I obviously don’t have any idea how many people there are who would consider paying almost $100 a year to get something that they already have, and can still get, free. Even if they’re cable cord cutters, they don’t have to pay extra for local channels. But I’m sure there are some, and if Aereo’s costs are low enough, perhaps it can be financially viable.

However, it’s hard to see Aereo as a major factor in TV distribution, even if they continue to win court cases. The hoopla is really about the possibility that Aereo will lessen the value of free TV to cable MSOs, which pay about a billion and a half to broadcasters for retransmission rights.

At least one cable company has already speculated that it could use Aereo’s “tiny antenna” approach to carry TV stations without paying retransmission. But if you think about what it would take, an antenna dedicated to each subscriber PLUS the need to stream the stations on demand, it would be a complicated set-up for cable to implement. It could also really tax their current on-demand bandwidth. Seems unlikely.

Aereo is also handicapped by its inability to let its subscribers watch when they’re out of the market. They have to geo-filter to prevent someone with a sign-on from Boston from watching in NY (who wants to hear those biased New York sportscasts?). I’ve often thought there’s also a small market among people who used to live in a city who want to keep up with the news and sports. Like Boston fans living in Florida.

Aereo is unlikely to change TV in any significant way.

One thought on “Post #15 – Okay, now I have Aereo. It’s unlikely to change TV.”

  1. I don’t think Aereo will change television by itself but….television is already changing. I think Aereo’s thesis and whoever ends up with Hulu is they want to be at the table when the current incumbents implode. Perhaps in that post-apocalypse world, Aereo and New Hulu will be able to compete for content with Disney, TW and Netflix!

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