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As Time Warner and CBS duke it out, Aereo enters the breach

Friday, 9 Aug 2013 | 8:31 AM ET
Source: Aereo

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 builds out its customer base across the United States. It will be available in Dallas starting September 23.

Time Warner 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's threat to broadcast tv
Chet Kanojia, Aereo CEO, discusses his plans to capture additional market share of television viewers despite fierce competition from network and Internet giants like Time Warner Cable, CBS and Google.

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 or 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, unlike operators like Time Warner.

The owners of the broadcast networks, including CBS, Walt Disney, News Corp.'s 21st Century Fox and Comcast's NBC have sued to block Aereo from accessing their programming. (Comcast is the owner of NBCUniversal, the parent of CNBC and CNBC.com.)

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 Amazon.com.

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