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Streaming TV startup Aereo has modified its pricing plans to now only offer memberships at $8 per month or $12 per month.
Aereo offers streams of over-the-air broadcasts from channels like ABC, CBS, NBC, FOX, and PBS and makes them available on PCs, smartphones, and tablets. It’s only available in a handful of cities, including New York City, and will soon be available in Boston. Previously, Aereo offered a day pass for $1 per day and annual membership for $80 per year. The $8 a month plan also gives a viewer 20 hours a month of DVR storage space, while the $12 a month plan gives them 60 hours a month.
“We looked at our data and it was clear, consumers want a more simple approach to pricing,” Aereo CEO and founder Chet Kanojia [above] said in a statement. “With our new pricing structure, consumers begin with one base plan and then have the ability to upgrade their membership to triple their DVR storage capacity. We want to make it simple and easy for consumers to access our technology and we believe this updated pricing plan accomplishes just that.”
While Kanojia says this is about simplifying pricing, the most likely reason the company is ditching day passes and annual memberships is to make more money. Day passes gave people the capability to just use Aereo for one-time events like the Super Bowl or the Oscars, and annual memberships bring in less total revenue than the base $8 per month plan.
Aereo has faced persistent legal attacks from TV networks who don’t want more control over the viewing experience taken away from them. These attacks most likely will continue, but Aereo still plans to roll out to other major cities in the U.S. this year.
Photo via Devindra Hardawar/VentureBeat