Aereo to enter Dallas, other markets as CBS blackout continues

Reuters News
Posted: Aug 08, 2013 11:15 AM

(Reuters) - Internet TV startup Aereo will soon be available in Dallas, one of the cities affected by the Time Warner Cable-CBS blackout, which extended into its seventh day on Thursday.

Aereo said on Thursday it would also launch in Houston and Miami as the controversial venture backed by Barry Diller's IAC/InterActive Corp builds out its customer base across the United States. It will be available in Dallas starting September 23.

Time Warner Cable Inc has been encouraging its customers to sign up for Aereo so they can watch CBS while the cable company and the network fight over fees for programming.

Aereo is planning to be in more than 20 cities as part of its first phase of expansion. Residents in New York, Boston and Atlanta can currently use the service.

The company has never released revenue or subscriber numbers.

Aereo allows subscribers to stream broadcast TV channels through devices like smartphones, tablets and computers for a monthly fee. It uses TV antennas to capture the signals and beam them back to subscribers.

The company pays no fees to broadcasters to carry their channels, while operators like Time Warner Cable do.

The owners of the broadcast networks, including CBS Corp, Walt Disney, 21st Century Fox and Comcast Corp's NBC have sued to block Aereo from accessing their programming.

Complicating matters is the gradual shift in the way people watch television. More consumers are ditching their cable subscriptions for independent services like Netflix Inc and Inc.

(Reporting by Jennifer Saba and Liana B. Baker in New York; Editing by Lisa Von Ahn)