Subscribers of Aereo can watch live and time-shifted streams of television shows currently on the air by using a device that is connected to the Internet. You can also watch Aereo by utilizing a Roku box via a stand-alone app. Instead of using an iOS gadget as a remote, the new app update on Jan. 13, 2013 permits on-screen navigation with the normal Roku clicker. Backed by IAC's Barry Diller, Aereo is a service technology company created in February 2012. It is headquartered in Long Island, N.Y.

The company is currently facing a legal issue that involves several television broadcast network owners. The issue is whether the business model used by Aereo comprises a public performance which requires the company to get "retransmission consent" from content providers. Last April, a ruling from a divided U.S. Court of Appeals' 3-judge panel for the Second Circuit declared that transmissions of Aereo are not public performances. The case is now scheduled to be presented before the U.S. Supreme Court.

To serve its regional markets, Aereo utilizes circuit boards plugged into small antennas. Its regional markets consist of New York, Atlanta, Boston, Cincinnati, Detroit, Miami, Baltimore and four Texas cities. Every customer gets a private service with this arrangement, which is entirely different from the "public performance" rules under the Copyright Act of 1976.

By paying $8 per month, customers can record their favorite programs with 24 hours of remote-storage DVR space and 24 channels. Alternatively, you get 60 hours and can record two shows simultaneously via the double antennae accessibility by paying $12 per month. The size of its subscriber base is unknown as the company does not want to disclose it. If the company wins the Supreme Court lawsuit, it would definitely be a good idea to invest in Aereo. There is also the possibility that a public offering launched by Aereo could start at a very high price.