Aereo scores $34 million in third round of funding
Barry Diller-backed Aereo, which provides a service that delivers broadcast television stations over the Internet, announced it had secured $34 million in additional funding.
Aereo said it would use the third-round of funding to support the nationwide expansion of its service as well as for increased investments in hiring and technology. The new round of funding will also help Aereo offset the cost of its ongoing copyright-infringement lawsuits that were filed by broadcasters.
“Aereo experienced tremendous growth in 2013 and we expect 2014 to be another blockbuster year,” said Aereo CEO and Founder Chet Kanojia. “Last year at this time, Aereo was launched in only New York City. Today, Aereo is available in 10 markets and will grow to 15 by the end of the quarter. In 2013, we also launched our first native app for Android, made improvements to enhance the user experience and more than doubled our employee headcount. Consumers are craving choice and options and as a result, we continue to see explosive growth across all our markets.
“Aereo has scaled very quickly in 365 days and this additional funding will allow us to maintain this rapid pace of growth.”
IAC was joined by media investor Gordon Crawford and Himalaya Capital Management, as well as existing investors Highland Capital Partners, FirstMark Capital and others in the latest round of funding.
Aereo’s antenna and cloud-based TV service is currently available to residents in the following markets: New York City, Boston, Atlanta, Miami, Salt Lake City, Houston, Dallas, Denver, Detroit and Baltimore.
Aereo membership starts at $8 per month, for access to its cloud-based antenna/DVR technology and 20 hours of DVR storage. For an additional $4 per month, consumers can upgrade their membership and receive 60 hours of DVR storage for a total of $12 per month. Consumers who join Aereo get their first of month of access for free.