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Aereo Runs Out Of Capacity In Atlanta, Too

Already Sold Out In NYC, Atlanta Tap-Out Comes Just Before Sochi Games 2/04/2014 5:32 PM Eastern

Raising more questions about the scalability of its platform, Aereo confirmed Tuesday that it has outstripped capacity in Atlanta, an admission that comes just days after the service was temporarily tapped out in New York City.

Spokeswoman Virginia Lam said via email that Aereo will advise consumers when Aereo has added fresh capacity in Atlanta, but could not say when the company will be ready to take on new customers in the market. In the meantime, consumers can enter the queue by registering on the company’s website, she added.  DSL Reports first reported Tuesday that Aereo had run out of capacity in Atlanta, where Aereo launched service last June.

Aereo has not identified the exact the nature of its recent capacity crunches, and if they are tied to physical facility space, its array of thumb-sized antennas, the servers powering its broadband TV/cloud DVR combo, a mix of those, or something else entirely.

When it ran out of capacity in NYC, the company stressed  that it was due to high subscriber demand and not linked to power-related issues.

The timing of Aereo’s capacity crunch in NYC and Atlanta could be better, as it comes just before the Sochi Games get underway on Thursday, Feb. 6.

Aereo has not disclosed an overall subscriber figure or any on a market-by-market basis. Dan Rayburn, EVP for and a principal analyst at Frost & Sullivan, suggested Monday (February 3) that Aereo had signed up “less than 500,000” subs in NYC, citing sources with ties to Aereo investors. He questions whether Aereo's can become a mainstream service.

“With Aereo running out of capacity in NYC, it’s just another example of how their streaming TV service, isn’t going to replace cable TV, for a large portion of the market, ever,” Rayburn wrote.

Meanwhile, Aereo, which will soon face off with face off with broadcasters in the Supreme Court and recently raised a $34 million round of funding, continues to expand its market reach.

On Monday, it announced it will launch in San Antonio on February 19 and reveal launch dates for additional cities later in the year. Markets already identified for future expansion include Chicago; Minneapolis; Madison, Wis.; Cleveland; Providence, R.I.; Philadelphia and Pittsburgh, Pa.; Kansas City; Washington, D.C.; Raleigh-Durham, N.C.; and Birmingham, Ala.