Wednesday, August 22, 2012, 9:25 PM ET|Posted by Will Richmond
In the second part of my interview with Aereo's founder and CEO Chet Kanojia, we begin by discussing how the company relates to the pay-TV industry, and whether it is incenting cord-cutting and cord-nevering, or is simply benefiting from this activity. In fact, Chet believes Aereo is a retardant for cord-nevering, because it helps people inclined in this direction to get accustomed to paying for video. Down the road he envisions how that helps them to become pay-TV subscribers.
Chet sees cable as an inspiration for Aereo, in the sense that it too started off providing a simple convenience service, namely improved broadcast reception. Cable's model of layering on subsequent services is one that Aereo could follow as well.
Of course much has been made about how Aereo potentially relieves pay-TV operators from the burden of expensive retransmission consent fees. No surprise, it was hard to pin Chet down on this issue, but generally he believes that given the cross ownership between broadcast TV networks, cable TV networks and cable TV operators, any pressure on one revenue stream would simply get resolved by adjusting the others.
Other topics we talk about include Hulu, Netflix, net neutrality, bandwidth caps, Barry Diller's role, the composition of Aereo's team, expansion plans and its success-based capex model.
Watch Part 2 of the interview below. Part 1 is here.