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Aereo, Enemy of Broadcast Networks, Raises $38M to Expand Into 22 New Cities

Aereo will expand to major cities including Boston, Chicago, Houston, Atlanta and Miami. One major exception? Los Angeles.

Aereo will expand to 22 new cities including Boston, Miami and Chicago thanks to a new $38 million funding round, announced Tuesday in Las Vegas. The service, which lets people stream broadcast TV using their mobile devices, computers and tablets for $8 a month, launched in 2012 in New York City only.

TV networks insist Aereo needs their consent to stream their programming, and have filed suit against the company.

Should Aereo survive its legal challenge, it has a huge expansion planned for 2013. In expanding to almost two dozen of the nation’s biggest cities, it would reach 97 million consumers. One notable exception? Los Angeles.

Access will be invite-only at first, though users can ask for an invite on the Aereo website.

“Aereo’s technology is simply one of the easiest, most convenient ways for consumers to access broadcast television,” CEO and founder Chet Kanoja said in a statement. “Consumers want and deserve choice. Watching television should be simple, convenient and rationally priced. Aereo’s technology provides exactly that: choice, flexibility and a first-class experience that every consumer deserves.”  

IAC and Highland capital led Aereo’s Series B round, which also included previous investors such as FirstMark Capital, First Round Capital and High Line Venture Partners.

Aereo is supported on iPad, iPhone, most major web browsers, AppleTV and Roku. Viewers can both stream live TV and record it for future viewing like with a DVR.

Here's the full list of cities: Atlanta, Austin, Baltimore, Birmingham (AL), Boston, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Kansas City, Madison (WI), Miami, Minneapolis, Philadelphia, Pittsburgh, Providence (RI), Raleigh-Durham (NC), Salt Lake City, Tampa, and Washington D.C.