So far, major TV networks have been dismissive about Aereo, the startup that streams free terrestrial broadcasts over the internet. But CEO Chet Kanojia is making it clear that his company doesn’t need millions of users to turn a profit, only hundreds of thousands, reports CNET. Speaking to a group of entrepreneurs at the Startup Grind event in New York, the CEO reportedly added that his company would have a "fabulous" business with a million users, and an "extremely fabulous" one with five million.
Unlike other video services like Netflix and Hulu, Aereo doesn’t pay any licensing fees for the content it streams (much to the chagrin of the networks), giving it a considerably lower cost structure. Last year, former TV mogul and current Aereo investor Barry Diller said that if the service found "10 to 20 million" subscribers it would be "very profitable," a sentiment that Kanojia echoed onstage today. From the sounds of it, as long as the company can successfully head off the legal challenges posed by the likes of CBS, NBC, and Fox, and continue to execute its aggressive expansion plan, Aereo should be in the money.