How Many Competitors Does Aereo Have?
The startup Aereo has been getting a lot of press lately for it’s spotlight in the Supreme Court thanks to one category of Aereo’s competitors: Media Companies.
What is Aereo? Aereo is a technology you subscribe to that allows you to watch live TV online and save shows for later without requiring cable. As an Aereo customer you can pick up TV channels and play them back over the Internet on devices you probably already own such as laptops, smartphones, tablets or TV-connected devices. By leveraging the cloud, Aereo has introduced a low-cost (low fuss) way of using an antennae to get television.
… and at least 17 Media companies such as ABC and CBS see Aereo as a competitive threat. Aereo is just the tip of the iceberg though. The reality is that the market is changing. People don't sign up for cable in the way they used to because of Netflix, HULU, Amazon Prime and other startups joining the space. Just how many? Let’s take a look:
Aereo’s customers are Live TV viewers looking for entertainment and news. The problem is one in six Americans get their news Online and there is a growing trend of “Zero TV” households — 5 million in the U.S last year (2013). What Aereo presents may not win back these customers but certainly they offer an appealing alternative to the same customer base as the content services outlined above. Aereo is low cost (about $8/m), takes out the hassle of customers putting up their own antenna (if they even can, renters and urban dwellers in particular have a difficult time if they need to mount it outside), and makes Live TV accessible on multiple devices. These are major differences from almost all of Aereo’s competition.
How much time do people spend watching Live TV anyways?
Quite a bit. At least in America we spend on average of 11 hours on Electronic Media — and the majority of time it’s in front of live TV, according to Nielsen. But over time has live TV consumption decreased?
According to Business Insider, “People are spending 127 minutes per day with their smartphones, up from 66 minutes per day in 2010. This means we spend more time with mobile phones and apps than we do on the web. This time spent is rapidly approaching the time we spend watching TV.”
Will any of this matter if Aereo looses it’s legal battle?
Well likely Aereo won't lose. Aereo it’s facing the same opposition as the VCR did in the 80's — initially the VCR was ruled illegal until it went to the Supreme Court. Either way, Aereo marks and important trend in how the industry is evolving.
What do you think — Just how many competitors does Aereo have? Tweet me @StacieAndrews
Author:
Stacie Andrews, CMTO and President of ProvadoMarketing.com
I work with Founders and CEOs to design state-of-the-art go to market solutions. My unique blend of business innovation methodologies, marketing and technology expertise is highly valued by companies to accelerate their growth.
* This article was inspired by my work with the Wasabi Ventures Academy whose focus is on Early Stage Startups. The opinions here are my own and do not necessarily reflect those of Wasabi Ventures.
