Besides Dish’s Ad Hopper, Aereo, the TV streaming service in NYC has caused the biggest disruption in the traditional TV world. Recently, broadcasters failed to do anything about Aereo in court. The company has big goals as they offer broadcast channels on a subscription basis to consumers in a Netflix-type model. Aereo also has social features built within their app that we recently talked about with their CEO. Today, the company is announcing a new pricing model and an opportunity to try out the service for free at first.
The most exciting options in their new slew of plans is the opportunity to buy a day pass for $1 plus tax or a year pass for $80 plus tax. Their original $12.99/month seemed way too pricey and a bit ahead of it’s time claiming that it made sense cord set-top-box cord cutters. There’s now also and $8/month plus tax option as well.
The free option is a great attempt to launch a freemium model into their business. No credit card is required to sign up and you’re able to stream up to an hour each day (it doesn’t include their DVR capabilities). The big question is, if the cord-cutting generation will care enough about live-TV to buy into their good technology and service. Also, will they be able to expand quickly into other markets? Let us know if you’re going to try out Aereo now that the pricing has changed.
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