VIDEO INSIDER: Aereo Maxed Out In New York City - Amazon May Be Hurt By Prime Price Hike

Welcome to our new Video Insider newsletter, a morning email with the top news and analysis on the digital video industry, produced by BI Intelligence.

AEREO IS OUT OF CAPACITY IN NYC: Aereo, a company that provides subscribers access to streaming broadcast TV, announced Friday it would no longer be accepting new customers in New York City due to lack of capacity. While the company has not released a breakdown of subscriber numbers for its service markets, it’s estimated that Aereo has 300,000 to 500,000 in New York, according to Forbes. The company also operates in 10 other markets, including Cincinnati, Boston, Atlanta, Salt Lake City, Miami, Dallas, Houston, Detroit, Denver and Baltimore. The news comes at the same time Aereo finds itself in a legal battle that will have major implications on the future of broadcast television. Aereo has already attracted $US100 million from investors, with some championing the company as the harbinger of a post-cable future. But capacity issues and an uncertain legal future may spell trouble for the company’s plans. (DSL Reports, Forbes)

AMAZON MAY RAISE THE PRICE OF PRIME: Amazon is considering raising the price of Prime, a service that allows customers to pay a flat fee for expedited shipping and unlimited access to the Prime Instant Video library. The company may raise the price of the service by $US20 to $US40 to offset increasing fuel and shipping costs. During the companies fourth quarter earnings call, Chief Financial Officer Thomas Szkutak noted that the company has not raised the price of Prime since introducing the service in 2005. Amazon has recently increased its focus on Prime’s streaming video feature, following Netflix’s strategy by securing exclusive content rights and producing original programming. The move may hurt Amazon’s competitiveness as a streaming video service. (CNET)

BRIGHTCOVE TOPS $US109 Million REVENUE IN 2013, COMPLETES UNICORN MEDIA ACQUISITION: Brightcove, a leading online video platform, generated over $US109 million in revenue in 2013, up 25% from the previous year. Brightcove recently acquired Unicorn Media, a company that specialises in online video advertisements. The deal cost Brightcove $US49 million in both cash and equity. During the company’s fourth quarter earnings call, CEO David Mendels said, “We believe we are at the very early stages of a fundamental disruption of the television market as the trends in consumer viewing move sharply towards online consumption.” (Wall Street Journal, Brightcove)

WELCOME, VIDEO INSIDERS: The Video Insider newsletter covers the day’s most important topics in digital video, as well as news exclusives of interest to industry insiders. We look forward to the newsletter becoming an important part of your morning routine.

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TIVO TO BUY DIGITALSMITHS: TiVo is set to acquire cloud-based media company Digitalsmiths for $US135 million. The deal will bolster TiVo’s existing services by providing access to the personalised video search, social trending, and mood-based discovery features operated by Digitalsmiths. “The Digitalsmiths acquisition opens new opportunities to commercialize and deploy TiVo’s cloud based services and technologies to operators, in an extremely cost effective way that can be offered either independently or in conjunction with TiVo’s renowned user interface,” said TiVo CEO Tom Rogers. (MarketWatch)

SUPER BOWL ILLUSTRATES THE BIG BUSINESS BEHIND MUST SEE LIVE TV: The last four Super Bowls racked in more viewers that any other program in television history. Last year’s championship game alone topped 108 million views, and this year’s is expected to achieve just as many. The Super Bowl’s viewership numbers and the advertising dollars that they attract underscore the business opportunity created by live events, according to an exposé by the New York Times. (New York Times)

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