Internet TV service Aereo plans 22-city expansion

Internet television service Aereo announced on Tuesday that it has received $38 million in funding and plans to expand to 22 cities this year, including Chicago, Houston and Washington, D.C. 

The service, which captures live, over-the-air TV signals and provides the channels to its users on their tablets or computers, is currently only available in New York City.

Broadcasters are suing to shut down Aereo, claiming that the service illegally streams their copyrighted material without their permission.

Aereo argues that consumers have a right to view and record broadcast television.

In their suit, a group of TV stations accuse Aereo of using "technological gimmickry" to dodge copyright law.

A federal court denied the broadcasters' request for an injunction last year; they have appealed to the 2nd Circuit Court of Appeals.

"Watching television should be simple, convenient and rationally priced," Aereo CEO Chet Kanojia said in a statement. "Aereo’s technology provides exactly that: choice, flexibility and a first-­class experience that every consumer deserves.”

The company struck a deal last month to offer the Bloomberg TV cable channel as part of its package.

If Aereo is successful, it could compete with or complement other online video services such as Netflix and Hulu and encourage more consumers to abandon cable TV.

A full list of cities where Aereo plans to expand is available on its website.

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